Senate Bill No. 333-Committee on Finance

(On Behalf of Clark County)

April 28, 1997
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Referred to Committee on Finance

SUMMARY--Revises provisions governing payment of hospitals for treating disproportionate share of Medicaid patients, indigent patients or other low-income patients. (BDR 38-203)

FISCAL NOTE: Effect on Local Government: Yes.
Effect on the State or on Industrial Insurance: No.

EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.

AN ACT relating to welfare; requiring the state plan for assistance to the medically indigent to provide payment to hospitals for treating a disproportionate share of Medicaid patients, indigent patients or other low-income patients in proportion to the number of Medicaid patients, indigent patients or other low-income patients to whom each hospital provided health care services during the preceding year; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1 NRS 422.387 is hereby amended to read as follows:
422.3871. Before making the payments required or authorized by this section, the department shall allocate money for the administrative costs necessary to carry out the provisions of NRS 422.380 to 422.390, inclusive. The amount allocated for administrative costs must not exceed the amount authorized for expenditure by the legislature for this purpose in a fiscal year [. The interim finance committee may adjust the amount allowed for administrative costs.] and must not exceed 10 percent of the total payments made pursuant to subsection 2.
2. The state plan for assistance to the medically indigent must provide:
(a) For the payment of the maximum amount allowable under federal law and regulations after making a payment, if any, pursuant to paragraph (b), to public hospitals for treating a disproportionate share of Medicaid patients, indigent patients or other low- income patients, unless such payments are subsequently limited by federal law or regulation.
(b) For a payment in an amount approved by the legislature to the private hospital that provides the largest volume of medical care to Medicaid patients, indigent patients or other low-income patients in a county that does not have a public hospital.
The plan must be consistent with the provisions of NRS 422.380 to 422.390, inclusive, and Title XIX of the Social Security Act (42 U.S.C. §§ 1396 et seq.), and the regulations adopted pursuant to those provisions.
3. Payments made pursuant to subsection 2 must be made to each hospital in proportion to the number of Medicaid patients, indigent patients or other low-income patients to whom the hospital provided health care services during the preceding year.
4. The department may amend the state plan for assistance to the medically indigent to modify the methodology for establishing the rates of payment to public hospitals for inpatient services, except that such amendments must not reduce the total reimbursements to public hospitals for such services.
Sec. 2 This act becomes effective upon passage and approval.

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