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SPONSOR: |
Robinson |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Medicaid Reimbursements |
SB |
440 |
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ANALYST: |
Weber |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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Indeterminate |
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(Parenthesis
( ) Indicate Expenditure Decreases)
Relates to SB212
Responses
Received From
Human
Services Department
SUMMARY
Synopsis
of Bill
Senate Bill 440 amends existing law to provide
that the Human Services Department (HSD) shall set the reimbursement rates for
services rendered by physicians, dentists, optometrists, podiatrists and
psychologists to Medicaid patients at not less than 95 percent of the
corresponding allowable amount reimbursable under Medicare, as amended. The effective date of this Act is
Significant
Issues
The Human Services Department reports the Medicaid physician, podiatrist, psychologists, optometrists fee schedule was updated in January of 2000 to reflect 95% of Medicare’s fee schedule in effect at that time. Medicaid procedure codes that were priced higher than Medicare’s fee schedule were not decreased. The fee increase enacted in 2000 did not have an impact on providers who bill with level II and III (non-Current Procedural Terminology) procedure codes. This includes optometrists and psychologists. Dental providers were given a fee increase in 1999 utilizing 85 percent of the average fees of the American Dental Association fee survey. Currently, the majority of Medicaid services are reimbursed higher than Medicare’s 2003 fee schedule.
FISCAL IMPLICATIONS
With recent reductions
in Medicare reimbursements, there are more Medicaid codes that exceed 95
percent of Medicare rate.
ADMINISTRATIVE IMPLICATIONS
Additional
staff time will be required to update the fee schedule yearly, including
writing instructions to Medicaid’s fiscal agent to update the Medicaid’s
Management Information System (MMIS) to reflect the yearly pricing changes.
CONFLICT, DUPLICATION, COMPANIONSHIP,
RELATIONSHIP
SB 440 is similar to
SB 212 but does not require extension of the fee schedule to the managed care
contracts.