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ARTICLE 8 AS AMENDED |
RELATING TO MEDICAL ASSISTANCE
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SECTION 1. Section 23-17-38.1 of the General Laws in Chapter 23-17 entitled "Licensing |
of Healthcare Facilities" is hereby amended to read as follows: |
23-17-38.1. Hospitals — Licensing fee. |
(a) There is imposed a hospital licensing fee for state fiscal year 2023 against each hospital |
in the state. The hospital licensing fee is equal to five and forty-two hundredths percent (5.42%) of |
the net patient-services revenue of every hospital for the hospital’s first fiscal year ending on or |
after January 1, 2021, except that the license fee for all hospitals located in Washington County, |
Rhode Island shall be discounted by thirty-seven percent (37%). The discount for Washington |
County hospitals is subject to approval by the Secretary of the U.S. Department of Health and |
Human Services of a state plan amendment submitted by the executive office of health and human |
services for the purpose of pursuing a waiver of the uniformity requirement for the hospital license |
fee. This licensing fee shall be administered and collected by the tax administrator, division of |
taxation within the department of revenue, and all the administration, collection, and other |
provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to the tax |
administrator on or before June 30, 2023, and payments shall be made by electronic transfer of |
monies to the general treasurer and deposited to the general fund. Every hospital shall, on or before |
May 25, 2023, make a return to the tax administrator containing the correct computation of net |
patient-services revenue for the hospital fiscal year ending September 30, 2021, and the licensing |
fee due upon that amount. All returns shall be signed by the hospital’s authorized representative, |
subject to the pains and penalties of perjury. |
(b)(a) There is also imposed a hospital licensing fee described in subsections (c) through |
(f) for state fiscal years 2024 and 2025 against net patient-services revenue of every non- |
government owned hospital as defined herein for the hospital’s first fiscal year ending on or after |
January 1, 2022. The hospital licensing fee shall have three (3) tiers with differing fees based on |
inpatient and outpatient net patient-services revenue. The executive office of health and human |
services, in consultation with the tax administrator, shall identify the hospitals in each tier, subject |
to the definitions in this section, by July 15, 2023, and shall notify each hospital of its tier by August |
1, 2023. |
(b) There is also imposed a hospital licensing fee described in subsections (c) through (f) |
for state fiscal year 2026 against net patient-services revenue of every non-government owned |
hospital as defined herein for the hospital’s first fiscal year ending on or after January 1, 2023. The |
hospital licensing fee shall have three (3) tiers with differing fees based on inpatient and outpatient |
net patient-services revenue. The executive office of health and human services, in consultation |
with the tax administrator, shall identify the hospitals in each tier, subject to the definitions in this |
section, by July 15, 2025, and shall notify each hospital of its assigned tier by August 1, 2025. |
(c) Tier 1 is composed of hospitals that do not meet the description of either Tier 2 or Tier |
3. |
(1) The inpatient hospital licensing fee for Tier 1 is equal to thirteen and twelve hundredths |
percent (13.12%) of the inpatient net patient-services revenue derived from inpatient net patient- |
services revenue of every Tier 1 hospital. |
(2) The outpatient hospital licensing fee for Tier 1 is equal to thirteen and thirty hundredths |
percent (13.30%) of the net patient-services revenue derived from outpatient net patient-services |
revenue of every Tier 1 hospital. |
(d) Tier 2 is composed of high Medicaid/uninsured cost hospitals and independent |
hospitals. |
(1) The inpatient hospital licensing fee for Tier 2 is equal to two and sixty-three hundredths |
percent (2.63%) of the inpatient net patient-services revenue derived from inpatient net patient- |
services revenue of every Tier 2 hospital. |
(2) The outpatient hospital licensing fee for Tier 2 is equal to two and sixty-six hundredths |
percent (2.66%) of the outpatient net patient-services revenue derived from outpatient net patient- |
services revenue of every Tier 2 hospital. |
(e) Tier 3 is composed of hospitals that are Medicare-designated low-volume hospitals and |
rehabilitative hospitals. |
(1) The inpatient hospital licensing fee for Tier 3 is equal to one and thirty-one hundredths |
percent (1.31%) of the inpatient net patient-services revenue derived from inpatient net patient- |
services revenue of every Tier 3 hospital. |
(2) The outpatient hospital licensing fee for Tier 3 is equal to one and thirty-three |
hundredths percent (1.33%) of the outpatient net patient-services revenue derived from outpatient |
net patient-services revenue of every Tier 3 hospital. |
(f) There is also imposed a hospital licensing fee for state fiscal year 2024 against state- |
government owned and operated hospitals in the state as defined herein. The hospital licensing fee |
is equal to five and twenty-five hundredths percent (5.25%) of the net patient-services revenue of |
every hospital for the hospital’s first fiscal year ending on or after January 1, 2022. There is also |
imposed a hospital licensing fee for state fiscal year years 2025 and 2026 against state-government |
owned and operated hospitals in the state as defined herein equal to five and twenty-five hundredths |
percent (5.25%) of the net patient-services revenue of every hospital for the hospital’s first fiscal |
year ending on or after January 1, 2023. |
(g) The hospital licensing fee described in subsections (b) through (f) is subject to U.S. |
Department of Health and Human Services approval of a request to waive the requirement that |
healthcare-related taxes be imposed uniformly as contained in 42 C.F.R. § 433.68(d). |
(h) This hospital licensing fee shall be administered and collected by the tax administrator, |
division of taxation within the department of revenue, and all the administration, collection, and |
other provisions of chapter 51 of title 44 shall apply. Every hospital shall pay the licensing fee to |
the tax administrator before June 30 June 25 of each fiscal year, and payments shall be made by |
electronic transfer of monies to the tax administrator and deposited to the general fund. Every |
hospital shall, on or before August 1, 2023 of each fiscal year, make a return to the tax administrator |
containing the correct computation of inpatient and outpatient net patient-services revenue for the |
hospital fiscal year ending in 2022 data referenced in subsection (a) and or (b), and the licensing |
fee due upon that amount. All returns shall be signed by the hospital’s authorized representative, |
subject to the pains and penalties of perjury. |
(i) For purposes of this section the following words and phrases have the following |
meanings: |
(1) “Gross patient-services revenue” means the gross revenue related to patient care |
services. |
(2) “High Medicaid/uninsured cost hospital” means a hospital for which the hospital’s total |
uncompensated care, as calculated pursuant to § 40-8.3-2(4), divided by the hospital’s total net |
patient-services revenues, is equal to six percent (6.0%) or greater. |
(3) “Hospital” means the actual facilities and buildings in existence in Rhode Island, |
licensed pursuant to § 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on |
that license, regardless of changes in licensure status pursuant to chapter 17.14 of this title (hospital |
conversions) and § 23-17-6(b) (change in effective control), that provides short-term acute inpatient |
and/or outpatient care to persons who require definitive diagnosis and treatment for injury, illness, |
disabilities, or pregnancy. Notwithstanding the preceding language, the negotiated Medicaid |
managed care payment rates for a court-approved purchaser that acquires a hospital through |
receivership, special mastership, or other similar state insolvency proceedings (which court- |
approved purchaser is issued a hospital license after January 1, 2013) shall be based upon the newly |
negotiated rates between the court-approved purchaser and the health plan, and such rates shall be |
effective as of the date that the court-approved purchaser and the health plan execute the initial |
agreement containing the newly negotiated rate. The rate-setting methodology for inpatient hospital |
payments and outpatient hospital payments set forth in §§ 40-8-13.4(b) and 40-8-13.4(b)(2), |
respectively, shall thereafter apply to negotiated increases for each annual twelve-month (12) |
period as of July 1 following the completion of the first full year of the court-approved purchaser’s |
initial Medicaid managed care contract. |
(4) “Independent hospitals” means a hospital not part of a multi-hospital system. |
(5) “Inpatient net patient-services revenue” means the charges related to inpatient care |
services less (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual |
allowances. |
(6) “Medicare-designated low-volume hospital” means a hospital that qualifies under 42 |
C.F.R. 412.101(b)(2) for additional Medicare payments to qualifying hospitals for the higher |
incremental costs associated with a low volume of discharges. |
(7) “Net patient-services revenue” means the charges related to patient care services less |
(i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual allowances. |
(8) “Non-government owned hospitals” means a hospital not owned and operated by the |
state of Rhode Island. |
(9) “Outpatient net patient-services revenue” means the charges related to outpatient care |
services less (i) Charges attributable to charity care; (ii) Bad debt expenses; and (iii) Contractual |
allowances. |
(10) “Rehabilitative hospital” means Rehabilitation Hospital Center licensed by the Rhode |
Island department of health. |
(11) “State-government owned and operated hospitals” means a hospital facility licensed |
by the Rhode Island department of health, owned and operated by the state of Rhode Island. |
(j) The tax administrator in consultation with the executive office of health and human |
services shall make and promulgate any rules, regulations, and procedures not inconsistent with |
state law and fiscal procedures that he or she deems necessary for the proper administration of this |
section and to carry out the provisions, policy, and purposes of this section. |
(k) The licensing fee imposed by subsection subsections (a) through (f) shall apply to |
hospitals as defined herein that are duly licensed on July 1, 2022 2024, and shall be in addition to |
the inspection fee imposed by § 23-17-38 and to any licensing fees previously imposed in |
accordance with this section. |
(l) The licensing fees imposed by subsections (b) through (f) shall apply to hospitals as |
defined herein that are duly licensed on July 1, 2023, and shall be in addition to the inspection fee |
imposed by § 23-17-38 and to any licensing fees previously imposed in accordance with this |
section. |
SECTION 2. Section 35-17-1 of the General Laws in Chapter 35-17 entitled "Medical |
Assistance and Public Assistance Caseload Estimating Conferences" is hereby amended to read as |
follows: |
35-17-1. Purpose and membership. |
(a) In order to provide for a more stable and accurate method of financial planning and |
budgeting, it is hereby declared the intention of the legislature that there be a procedure for the |
determination of official estimates of anticipated medical assistance expenditures and public |
assistance caseloads, upon which the executive budget shall be based and for which appropriations |
by the general assembly shall be made. |
(b) The state budget officer, the house fiscal advisor, and the senate fiscal advisor shall |
meet in regularly scheduled caseload estimating conferences (C.E.C.). These conferences shall be |
open public meetings. |
(c) The chairpersonship of each regularly scheduled C.E.C. will rotate among the state |
budget officer, the house fiscal advisor, and the senate fiscal advisor, hereinafter referred to as |
principals. The schedule shall be arranged so that no chairperson shall preside over two (2) |
successive regularly scheduled conferences on the same subject. |
(d) Representatives of all state agencies are to participate in all conferences for which their |
input is germane. |
(e) The department of human services shall provide monthly data to the members of the |
caseload estimating conference by the fifteenth day of the following month. Monthly data shall |
include, but is not limited to, actual caseloads and expenditures for the following case assistance |
programs: Rhode Island Works, SSI state program, general public assistance, and child care. For |
individuals eligible to receive the payment under § 40-6-27(a)(1)(vi) [repealed], the report shall |
include the number of individuals enrolled in a managed care plan receiving long-term care services |
and supports and the number receiving fee-for-service benefits. The executive office of health and |
human services shall report relevant caseload information and expenditures for the following |
medical assistance categories: hospitals, long-term care, managed care, pharmacy, and other |
medical services. In the category of managed care, caseload information and expenditures for the |
following populations shall be separately identified and reported: children with disabilities, |
children in foster care, and children receiving adoption assistance and RIte Share enrollees under § |
40-8.4-12(j). The information shall include the number of Medicaid recipients whose estate may |
be subject to a recovery and the anticipated amount to be collected from those subject to recovery, |
the total recoveries collected each month and number of estates attached to the collections and each |
month, the number of open cases and the number of cases that have been open longer than three |
months. The executive office will also report separately the amount that the Medicaid expenditures |
have been reduced by third-party liability payments to providers, supplemental income verification |
tools, the department of administration's office of internal audit and program integrity unit, and |
recoveries from ABLE accounts. |
(f) Beginning July 1, 2021, the department of behavioral healthcare, developmental |
disabilities and hospitals shall provide monthly data to the members of the caseload estimating |
conference by the twenty-fifth day of the following month. Monthly data shall include, but is not |
limited to, actual caseloads and expenditures for the private community developmental disabilities |
services program. Information shall include, but not be limited to: the number of cases and |
expenditures from the beginning of the fiscal year at the beginning of the prior month; cases added |
and denied during the prior month; expenditures made; and the number of cases and expenditures |
at the end of the month. The information concerning cases added and denied shall include summary |
information and profiles of the service-demand request for eligible adults meeting the state statutory |
definition for services from the division of developmental disabilities as determined by the division, |
including age, Medicaid eligibility and agency selection placement with a list of the services |
provided, and the reasons for the determinations of ineligibility for those cases denied. The |
department shall also provide, monthly, the number of individuals in a shared-living arrangement |
and how many may have returned to a twenty-four-hour (24) residential placement in that month. |
The department shall also report, monthly, any and all information for the consent decree that has |
been submitted to the federal court as well as the number of unduplicated individuals employed; |
the place of employment; and the number of hours working. The department shall also provide the |
amount of funding allocated to individuals above the assigned resource levels; the number of |
individuals and the assigned resource level; and the reasons for the approved additional resources. |
The department will also collect and forward to the house fiscal advisor, the senate fiscal advisor, |
and the state budget officer, by November 1 of each year, the annual cost reports for each |
community-based provider for the prior fiscal year. The department shall also provide the amount |
of patient liability to be collected and the amount collected as well as the number of individuals |
who have a financial obligation. The department will also provide a list of community-based |
providers awarded an advanced payment for residential and community-based day programs; the |
address for each property; and the value of the advancement. If the property is sold, the department |
must report the final sale, including the purchaser, the value of the sale, and the name of the agency |
that operated the facility. If residential property, the department must provide the number of |
individuals residing in the home at the time of sale and identify the type of residential placement |
that the individual(s) will be moving to. The department must report if the property will continue |
to be licensed as a residential facility. The department will also report any newly licensed twenty- |
four-hour (24) group home; the provider operating the facility; and the number of individuals |
residing in the facility. Prior to December 1, 2017, the department will provide the authorizations |
for community-based and day programs, including the unique number of individuals eligible to |
receive the services and at the end of each month the unique number of individuals who participated |
in the programs and claims processed. |
(g) The executive office of health and human services shall provide direct assistance to the |
department of behavioral healthcare, developmental disabilities and hospitals to facilitate |
compliance with the monthly reporting requirements in addition to preparation for the caseload |
estimating conferences. |
SECTION 3. Section 40-6-9.1 of the General Laws in Chapter 40-6 entitled "Public |
Assistance Act" is hereby amended to read as follows: |
40-6-9.1. Data matching — Healthcare coverages. |
(a) For purposes of this section, the term “medical assistance program” shall mean medical |
assistance provided in whole or in part by the department of human services executive office of |
health and human services pursuant to chapters 5.1, 8, 8.4 of this title, 12.3 of title 42 and/or Title |
XIX or XXI of the federal Social Security Act, as amended, 42 U.S.C. § 1396 et seq. and 42 U.S.C. |
§ 1397aa et seq., respectively. Any references to the department office shall be to the department |
of human services executive office of health and human services. |
(b) In furtherance of the assignment of rights to medical support to the department of |
human services executive office of health and human services under § 40-6-9(b), (c), (d), and (e), |
and in order to determine the availability of other sources of healthcare insurance or coverage for |
beneficiaries of the medical assistance program, and to determine potential third-party liability for |
medical assistance paid out by the department office, all health insurers, health-maintenance |
organizations, including managed care organizations, and third-party administrators, self-insured |
plans, pharmacy benefit managers (PBM), and other parties that are by statute, contract, or |
agreement, legally responsible for payment of a claim for a healthcare item of service doing |
business in the state of Rhode Island shall permit and participate in data matching with the |
department of human services executive office of health and human services, as provided in this |
section, to assist the department office to identify medical assistance program applicants, |
beneficiaries, and/or persons responsible for providing medical support for applicants and |
beneficiaries who may also have healthcare insurance or coverage in addition to that provided, or |
to be provided, by the medical assistance program and to determine any third-party liability in |
accordance with this section. |
The department office shall take all reasonable measures to determine the legal liability of |
all third parties (including health insurers, self-insured plans, group health plans (as defined in § |
607(1) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. § 1167(1)]), service |
benefit plans, health-maintenance organizations, managed care organizations, pharmacy benefit |
managers, or other parties that are, by statute, contract, or agreement, legally responsible for |
payment of a claim for a healthcare item or service), to pay for care and services on behalf of a |
medical assistance recipient, including collecting sufficient information to enable the department |
office to pursue claims against such third parties. |
In any case where such a legal liability is found to exist and medical assistance has been |
made available on behalf of the individual (beneficiary), the department office shall seek |
reimbursement for the assistance to the extent of the legal liability and in accordance with the |
assignment described in § 40-6-9. |
To the extent that payment has been made by the department office for medical assistance |
to a beneficiary in any case where a third party has a legal liability to make payment for the |
assistance, and to the extent that payment has been made by the department office for medical |
assistance for healthcare items or services furnished to an individual, the department office (state) |
is considered to have acquired the rights of the individual to payment by any other party for the |
healthcare items or services in accordance with § 40-6-9. |
Any health insurer (including a group health plan, as defined in § 607(1) of the Employee |
Retirement Income Security Act of 1974 [29 U.S.C. § 1167(1)], a self-insured plan, a service- |
benefit plan, a managed care organization, a pharmacy benefit manager, or other party that is, by |
statute, contract, or agreement, legally responsible for payment of a claim for a healthcare item or |
service), in enrolling an individual, or in making any payments for benefits to the individual or on |
the individual’s behalf, is prohibited from taking into account that the individual is eligible for, or |
is provided, medical assistance under a plan under 42 U.S.C. § 1396 et seq. for this state, or any |
other state. |
(c) All health insurers or liable third parties, including, but not limited to, health- |
maintenance organizations, third-party administrators, nonprofit medical-service corporations, |
nonprofit hospital-service corporations, subject to the provisions of chapters 18, 19, 20, and 41 of |
title 27, as well as, self-insured plans, group health plans (as defined in § 607(1) of the Employee |
Retirement Income Security Act of 1974 [29 U.S.C. § 1167(1)]), service-benefit plans, managed |
care organizations, pharmacy benefit managers, or other parties that are, by statute, contract, or |
agreement, legally responsible for payment of a claim for a healthcare item or service) doing |
business in this state shall: |
(1) Provide member information within fourteen (14) calendar days of the request to the |
department office to enable the medical assistance program to identify medical assistance program |
recipients, applicants and/or persons responsible for providing medical support for those recipients |
and applicants who are, or could be, enrollees or beneficiaries under any individual or group health |
insurance contract, plan, or policy available or in force and effect in the state; |
(2) With respect to individuals who are eligible for, or are provided, medical assistance by |
the department office, upon the request of the department office, provide member information |
within fourteen (14) calendar days of the request to determine during what period the individual or |
his or hertheir spouse or dependents may be (or may have been) covered by a health insurer and |
the nature of the coverage that is, or was provided by the health insurer (including the name, |
address, and identifying number of the plan); |
(3) Accept the state’s right of recovery and the assignment to the state of any right of an |
individual or other entity to payment from the party for an item or service for which payment has |
been made by the department office; |
(4) Respond to any inquiry by the department office regarding a claim for payment for any |
healthcare item or service that is submitted not later than three (3) years after the date of the |
provision of the healthcare item or service; and |
(5) Agree not to deny a claim submitted by the state based solely on procedural reasons, |
such as on the basis of the date of submission of the claim, the type or format of the claim form, |
failure to obtain a prior authorization, or a failure to present proper documentation at the point-of- |
sale that is the basis of the claim, if—: |
(i) The claim is submitted by the state within the three-year (3) period beginning on the |
date on which the item or service was furnished; and |
(ii) Any action by the state to enforce its rights with respect to the claim is commenced |
within six (6) years of the state’s submission of such claim. |
(6) Agree to respond to any inquiry regarding claims within sixty (60) business days after |
receipt of the written documentation by the Medicaid recipient. |
(7) Agree to not deny a claim for failure to obtain prior authorization for an item or service. |
In the case of a responsible third party that requires prior authorization for an item or service |
furnished to an individual eligible to receive medical assistance under the state Medicaid program, |
the third-party health insurer shall accept authorization provided by state medical assistance |
program that the item or service is covered by Medicaid as if that authorization is a prior |
authorization made by the third-party health insurer for the item or service. |
(d) This information shall be made available by these insurers and health-maintenance |
organizations and used by the department of human services executive office of health and human |
services only for the purposes of, and to the extent necessary for, identifying these persons, |
determining the scope and terms of coverage, and ascertaining third-party liability. The department |
of human services executive office of health and human services shall provide information to the |
health insurers, including health insurers, self-insured plans, group health plans (as defined in § |
607(1) of the Employee Retirement Income Security Act of 1974 [29 U.S.C. § 1167(1)]), service- |
benefit plans, managed care organizations, pharmacy benefit managers, or other parties that are, by |
statute, contract, or agreement, legally responsible for payment of a claim for a healthcare item or |
service) only for the purposes described herein. |
(e) No health insurer, health-maintenance organization, or third-party administrator that |
provides, or makes arrangements to provide, information pursuant to this section shall be liable in |
any civil or criminal action or proceeding brought by beneficiaries or members on account of this |
action for the purposes of violating confidentiality obligations under the law. |
(f) The department office shall submit any appropriate and necessary state plan provisions. |
(g) The department of human services executive office of health and human services is |
authorized and directed to promulgate regulations necessary to ensure the effectiveness of this |
section. |
SECTION 4. Section 40-8-19 of the General Laws in Chapter 40-8 entitled "Medical |
Assistance" is hereby amended to read as follows: |
40-8-19. Rates of payment to nursing facilities. |
(a) Rate reform. |
(1) The rates to be paid by the state to nursing facilities licensed pursuant to chapter 17 of |
title 23, and certified to participate in Title XIX of the Social Security Act for services rendered to |
Medicaid-eligible residents, shall be reasonable and adequate to meet the costs that must be |
incurred by efficiently and economically operated facilities in accordance with 42 U.S.C. § |
1396a(a)(13). The executive office of health and human services (“executive office”) shall |
promulgate or modify the principles of reimbursement for nursing facilities in effect as of July 1, |
2011, to be consistent with the provisions of this section and Title XIX, 42 U.S.C. § 1396 et seq., |
of the Social Security Act. |
(2) The executive office shall review the current methodology for providing Medicaid |
payments to nursing facilities, including other long-term care services providers, and is authorized |
to modify the principles of reimbursement to replace the current cost-based methodology rates with |
rates based on a price-based methodology to be paid to all facilities with recognition of the acuity |
of patients and the relative Medicaid occupancy, and to include the following elements to be |
developed by the executive office: |
(i) A direct-care rate adjusted for resident acuity; |
(ii) An indirect-care and other direct-care rate comprised of a base per diem for all facilities; |
(iii) Revision of rates as necessary based on increases in direct and indirect costs beginning |
October 2024 utilizing data from the most recent finalized year of facility cost report. The per diem |
rate components deferred in subsections (a)(2)(i) and (a)(2)(ii) of this section shall be adjusted |
accordingly to reflect changes in direct and indirect care costs since the previous rate review; |
(iv) Application of a fair-rental value system; |
(v) Application of a pass-through system; and |
(vi) Adjustment of rates by the change in a recognized national nursing home inflation |
index to be applied on October 1 of each year, beginning October 1, 2012. This adjustment will not |
occur on October 1, 2013, October 1, 2014, or October 1, 2015, but will occur on April 1, 2015. |
The adjustment of rates will also not occur on October 1, 2017, October 1, 2018, October 1, 2019, |
and October 2022. Effective July 1, 2018, rates paid to nursing facilities from the rates approved |
by the Centers for Medicare and Medicaid Services and in effect on October 1, 2017, both fee-for- |
service and managed care, will be increased by one and one-half percent (1.5%) and further |
increased by one percent (1%) on October 1, 2018, and further increased by one percent (1%) on |
October 1, 2019. Effective October 1, 2022, rates paid to nursing facilities from the rates approved |
by the Centers for Medicare and Medicaid Services and in effect on October 1, 2021, both fee-for- |
service and managed care, will be increased by three percent (3%). In addition to the annual nursing |
home inflation index adjustment, there shall be a base rate staffing adjustment of one-half percent |
(0.5%) on October 1, 2021, one percent (1.0%) on October 1, 2022, and one and one-half percent |
(1.5%) on October 1, 2023. For the twelve-(12)month (12) period beginning October 1, 2025, rates |
paid to nursing facilities from the rates approved by the Centers for Medicare and Medicaid |
Services and in effect on October 1, 2024, both fee-for-service and managed care, will be increased |
by two and three-tenths percent (2.3%) There shall also be a base rate staffing adjustment of three |
percent (3%) effective October 1, 2025. Not less than one hundred percent (100%) of this base-rate |
staffing adjustment shall be expended by each nursing facility to increase compensation, wages, |
benefits, and related employer costs, for eligible direct-care staff, including the cost of hiring |
additional eligible direct-care positions, as defined in subsection (a)(2)(vi). The inflation index shall |
be applied without regard for the transition factors in subsections (b)(1) and (b)(2). For purposes |
of October 1, 2016, adjustment only, any rate increase that results from application of the inflation |
index to subsections (a)(2)(i) and (a)(2)(ii) shall be dedicated to increase compensation for direct- |
care workers in the following manner: Not less than 85% of this aggregate amount shall be |
expended to fund an increase in wages, benefits, or related employer costs of direct-care staff of |
nursing homes. For purposes of this section, direct-care staff shall include registered nurses (RNs), |
licensed practical nurses (LPNs), certified nursing assistants (CNAs), certified medical technicians, |
housekeeping staff, laundry staff, dietary staff, or other similar employees providing direct-care |
services; provided, however, that this definition of direct-care staff shall not include: (i) RNs and |
LPNs who are classified as “exempt employees” under the federal Fair Labor Standards Act (29 |
U.S.C. § 201 et seq.); or (ii) CNAs, certified medical technicians, RNs, or LPNs who are contracted, |
or subcontracted, through a third-party vendor or staffing agency. By July 31, 2017, nursing |
facilities shall submit to the secretary, or designee, a certification that they have complied with the |
provisions of this subsection (a)(2)(vi) with respect to the inflation index applied on October 1, |
2016. Any facility that does not comply with the terms of such certification shall be subjected to a |
clawback, paid by the nursing facility to the state, in the amount of increased reimbursement subject |
to this provision that was not expended in compliance with that certification. |
(3) Commencing on October 1, 2021, eighty percent (80%) of any rate increase that results |
from application of the inflation index to subsections (a)(2)(i) and (a)(2)(ii) of this section shall be |
dedicated to increase compensation for all eligible direct-care workers in the following manner on |
October 1, of each year. |
(i) For purposes of this subsection, compensation increases shall include base salary or |
hourly wage increases, benefits, other compensation, and associated payroll tax increases for |
eligible direct-care workers. This application of the inflation index shall apply for Medicaid |
reimbursement in nursing facilities for both managed care and fee-for-service. For purposes of this |
subsection, direct-care staff shall include registered nurses (RNs), licensed practical nurses (LPNs), |
certified nursing assistants (CNAs), certified medication technicians, licensed physical therapists, |
licensed occupational therapists, licensed speech-language pathologists, mental health workers |
who are also certified nurse assistants, physical therapist assistants, social worker, or any nurse aide |
with a valid license, even if it is probationary, housekeeping staff, laundry staff, dietary staff, or |
other similar employees providing direct-care services; provided, however that this definition of |
direct-care staff shall not include: |
(A) RNs and LPNs who are classified as “exempt employees” under the federal Fair Labor |
Standards Act (29 U.S.C. § 201 et seq.); or |
(B) CNAs, certified medication technicians, RNs, or LPNs who are contracted or |
subcontracted through a third-party vendor or staffing agency. |
(4)(i) By July 31, 2021, and July 31 of each year thereafter, nursing facilities shall submit |
to the secretary or designee a certification that they have complied with the provisions of subsection |
(a)(3) of this section with respect to the inflation index applied on October 1. The executive office |
of health and human services (EOHHS) shall create the certification form nursing facilities must |
complete with information on how each individual eligible employee’s compensation increased, |
including information regarding hourly wages prior to the increase and after the compensation |
increase, hours paid after the compensation increase, and associated increased payroll taxes. A |
collective bargaining agreement can be used in lieu of the certification form for represented |
employees. All data reported on the compliance form is subject to review and audit by EOHHS. |
The audits may include field or desk audits, and facilities may be required to provide additional |
supporting documents including, but not limited to, payroll records. |
(ii) Any facility that does not comply with the terms of certification shall be subjected to a |
clawback and twenty-five percent (25%) penalty of the unspent or impermissibly spent funds, paid |
by the nursing facility to the state, in the amount of increased reimbursement subject to this |
provision that was not expended in compliance with that certification. |
(iii) In any calendar year where no inflationary index is applied, eighty percent (80%) of |
the base rate staffing adjustment in that calendar year pursuant to subsection (a)(2)(vi) of this |
section shall be dedicated to increase compensation for all eligible direct-care workers in the |
manner referenced in subsections (a)(3)(i), (a)(3)(i)(A), and (a)(3)(i)(B) of this section. |
(b) Transition to full implementation of rate reform. For no less than four (4) years after |
the initial application of the price-based methodology described in subsection (a)(2) to payment |
rates, the executive office of health and human services shall implement a transition plan to |
moderate the impact of the rate reform on individual nursing facilities. The transition shall include |
the following components: |
(1) No nursing facility shall receive reimbursement for direct-care costs that is less than |
the rate of reimbursement for direct-care costs received under the methodology in effect at the time |
of passage of this act; for the year beginning October 1, 2017, the reimbursement for direct-care |
costs under this provision will be phased out in twenty-five-percent (25%) increments each year |
until October 1, 2021, when the reimbursement will no longer be in effect; and |
(2) No facility shall lose or gain more than five dollars ($5.00) in its total, per diem rate the |
first year of the transition. An adjustment to the per diem loss or gain may be phased out by twenty- |
five percent (25%) each year; except, however, for the years beginning October 1, 2015, there shall |
be no adjustment to the per diem gain or loss, but the phase out shall resume thereafter; and |
(3) The transition plan and/or period may be modified upon full implementation of facility |
per diem rate increases for quality of care-related measures. Said modifications shall be submitted |
in a report to the general assembly at least six (6) months prior to implementation. |
(4) Notwithstanding any law to the contrary, for the twelve-month (12) period beginning |
July 1, 2015, Medicaid payment rates for nursing facilities established pursuant to this section shall |
not exceed ninety-eight percent (98%) of the rates in effect on April 1, 2015. Consistent with the |
other provisions of this chapter, nothing in this provision shall require the executive office to restore |
the rates to those in effect on April 1, 2015, at the end of this twelve-month (12) period. |
SECTION 5. Sections 40-8.3-2 and 40-8.3-3 of the General Laws in Chapter 40-8.3 entitled |
"Uncompensated Care" are hereby amended to read as follows: |
40-8.3-2. Definitions. |
As used in this chapter: |
(1) “Base year” means, for the purpose of calculating a disproportionate share payment for |
any fiscal year ending after September 30, 2023 2024, the period from October 1, 2021 2022, |
through September 30, 2022 2023, and for any fiscal year ending after September 30, 2024 2025, |
the period from October 1, 2022 2023, through September 30, 2023 2024. |
(2) “Medicaid inpatient utilization rate for a hospital” means a fraction (expressed as a |
percentage), the numerator of which is the hospital’s number of inpatient days during the base year |
attributable to patients who were eligible for medical assistance during the base year and the |
denominator of which is the total number of the hospital’s inpatient days in the base year. |
(3) “Participating hospital” means any nongovernment and nonpsychiatric hospital that: |
(i) Was licensed as a hospital in accordance with chapter 17 of title 23 during the base year |
and shall mean the actual facilities and buildings in existence in Rhode Island, licensed pursuant to |
§ 23-17-1 et seq. on June 30, 2010, and thereafter any premises included on that license, regardless |
of changes in licensure status pursuant to chapter 17.14 of title 23 (hospital conversions) and § 23- |
17-6(b) (change in effective control), that provides short-term, acute inpatient and/or outpatient |
care to persons who require definitive diagnosis and treatment for injury, illness, disabilities, or |
pregnancy. Notwithstanding the preceding language, the negotiated Medicaid managed care |
payment rates for a court-approved purchaser that acquires a hospital through receivership, special |
mastership, or other similar state insolvency proceedings (which court-approved purchaser is issued |
a hospital license after January 1, 2013), shall be based upon the newly negotiated rates between |
the court-approved purchaser and the health plan, and the rates shall be effective as of the date that |
the court-approved purchaser and the health plan execute the initial agreement containing the newly |
negotiated rate. The rate-setting methodology for inpatient hospital payments and outpatient |
hospital payments set forth in §§ 40-8-13.4(b)(1)(ii)(C) and 40-8-13.4(b)(2), respectively, shall |
thereafter apply to negotiated increases for each annual twelve-month (12) period as of July 1 |
following the completion of the first full year of the court-approved purchaser’s initial Medicaid |
managed care contract; |
(ii) Achieved a medical assistance inpatient utilization rate of at least one percent (1%) |
during the base year; and |
(iii) Continues to be licensed as a hospital in accordance with chapter 17 of title 23 during |
the payment year. |
(4) “Uncompensated-care costs” means, as to any hospital, the sum of: (i) The cost incurred |
by the hospital during the base year for inpatient or outpatient services attributable to charity care |
(free care and bad debts) for which the patient has no health insurance or other third-party coverage |
less payments, if any, received directly from such patients; (ii) The cost incurred by the hospital |
during the base year for inpatient or outpatient services attributable to Medicaid beneficiaries less |
any Medicaid reimbursement received therefor; and (iii) the sum of subsections (4)(i) and (4)(ii) of |
this section shall be offset by the estimated hospital’s commercial equivalent rates state directed |
payment for the current SFY in which the disproportionate share hospital (DSH) payment is made. |
The sum of subsections (4)(i), (4)(ii), and (4)(iii) of this section shall be multiplied by the |
uncompensated care index. |
(5) “Uncompensated-care index” means the annual percentage increase for hospitals |
established pursuant to § 27-19-14 [repealed] for each year after the base year, up to and including |
the payment year; provided, however, that the uncompensated-care index for the payment year |
ending September 30, 2007, shall be deemed to be five and thirty-eight hundredths percent (5.38%), |
and that the uncompensated-care index for the payment year ending September 30, 2008, shall be |
deemed to be five and forty-seven hundredths percent (5.47%), and that the uncompensated-care |
index for the payment year ending September 30, 2009, shall be deemed to be five and thirty-eight |
hundredths percent (5.38%), and that the uncompensated-care index for the payment years ending |
September 30, 2010, September 30, 2011, September 30, 2012, September 30, 2013, September |
30, 2014, September 30, 2015, September 30, 2016, September 30, 2017, September 30, 2018, |
September 30, 2019, September 30, 2020, September 30, 2021, September 30, 2022, September |
30, 2023, September 30, 2024, and September 30, 2025, and September 30, 2026, shall be deemed |
to be five and thirty hundredths percent (5.30%). |
40-8.3-3. Implementation. |
(a) For federal fiscal year 2023, commencing on October 1, 2022, and ending September |
30, 2023, the executive office of health and human services shall submit to the Secretary of the |
United States Department of Health and Human Services a state plan amendment to the Rhode |
Island Medicaid DSH Plan to provide: |
(1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of |
$159.0 million, shall be allocated by the executive office of health and human services to the Pool |
D component of the DSH Plan; and |
(2) That the Pool D allotment shall be distributed among the participating hospitals in direct |
proportion to the individual participating hospital’s uncompensated-care costs for the base year, |
inflated by the uncompensated-care index to the total uncompensated-care costs for the base year |
inflated by the uncompensated-care index for all participating hospitals. The disproportionate share |
payments shall be made on or before June 15, 2023, and are expressly conditioned upon approval |
on or before June 23, 2023, by the Secretary of the United States Department of Health and Human |
Services, or his or her authorized representative, of all Medicaid state plan amendments necessary |
to secure for the state the benefit of federal financial participation in federal fiscal year 2023 for |
the disproportionate share payments. |
(b)(a) For federal fiscal year 2024, commencing on October 1, 2023, and ending September |
30, 2024, the executive office of health and human services shall submit to the Secretary of the |
United States Department of Health and Human Services a state plan amendment to the Rhode |
Island Medicaid DSH Plan to provide: |
(1) That the DSH Plan to all participating hospitals, not to exceed an aggregate limit of |
$14.8 million, shall be allocated by the executive office of health and human services to the Pool |
D component of the DSH Plan; and |
(2) That the Pool D allotment shall be distributed among the participating hospitals in direct |
proportion to the individual participating hospital’s uncompensated-care costs for the base year, |
inflated by the uncompensated-care index to the total uncompensated-care costs for the base year |
inflated by the uncompensated-care index for all participating hospitals. The disproportionate share |
payments shall be made on or before June 30, 2024, and are expressly conditioned upon approval |
on or before June 23, 2024, by the Secretary of the United States Department of Health and Human |
Services, or his or hertheir authorized representative, of all Medicaid state plan amendments |
necessary to secure for the state the benefit of federal financial participation in federal fiscal year |
2024 for the disproportionate share payments. |
(c)(b) For federal fiscal year 2025, commencing on October 1, 2024, and ending September |
30, 2025, the executive office of health and human services shall submit to the Secretary of the |
United States Department of Health and Human Services a state plan amendment to the Rhode |
Island Medicaid DSH plan to provide: |
(1) The creation of Pool C which allots no more than nineteen million nine hundred |
thousand dollars ($19,900,000) twelve million nine hundred thousand dollars ($12,900,000) to |
Medicaid eligible government-owned hospitals; |
(2) That the DSH plan to all participating hospitals, not to exceed an aggregate limit of |
$34.7 $27.7 million, shall be allocated by the executive office of health and human services to the |
Pool C and D components of the DSH plan; |
(3) That the Pool D allotment shall be distributed among the participating hospitals in direct |
proportion to the individual participating hospital’s uncompensated-care costs for the base year, |
inflated by the uncompensated-care index to the total uncompensated-care costs for the base year |
inflated by the uncompensated-care index of all participating hospitals. The disproportionate share |
payments shall be made on or before June 30, 2025, and are expressly conditioned upon approval |
on or before June 23, 2025, by the Secretary of the United States Department of Health and Human |
Services, or their authorized representative, of all Medicaid state plan amendments necessary to |
secure for the state the benefit of federal financial participation in federal fiscal year 2025 for the |
disproportionate share payments; and |
(4) That the Pool C allotment shall be distributed among the participating hospitals in direct |
proportion to the individual participating hospital’s uncompensated-care costs for the base year, |
inflated by the uncompensated-care index to the total uncompensated-care cost for the base year |
inflated by the uncompensated-care index of all participating hospitals. The disproportionate share |
payments shall be made on or before June 30, 2025, and are expressly conditioned upon approval |
on or before June 23, 2025, by the Secretary of the United States Department of Health and Human |
Services, or their authorized representative, of all Medicaid state plan amendments necessary to |
secure for the state the benefit of federal financial participation in federal fiscal year 2025 for the |
disproportionate share payments. |
(c) For federal fiscal year 2026, commencing on October 1, 2025, and ending September |
30, 2026, the executive office of health and human services shall submit to the Secretary of the |
United States Department of Health and Human Services a state plan amendment to the Rhode |
Island Medicaid DSH plan to provide: |
(1) That the DSH plan to all participating hospitals, not to exceed an aggregate limit of |
$13.9 million, shall be allocated by the executive office of health and human services to the Pool |
C and D components of the DSH plan. Pool C shall not exceed an aggregate limit of $12.9 million. |
Pool D shall not exceed an aggregate limit of $1.0 million. |
(2) That the Pool C allotment shall be distributed among the participating hospitals in direct |
proportion to the individual participating hospital’s uncompensated-care costs for the base year, |
inflated by the uncompensated-care index to the total uncompensated-care cost for the base year |
inflated by the uncompensated-care index of all participating hospitals. The disproportionate share |
payments shall be made on or before June 30, 2026, and are expressly conditioned upon approval |
on or before June 23, 2026, by the Secretary of the United States Department of Health and Human |
Services, or their authorized representative, of all Medicaid state plan amendments necessary to |
secure for the state the benefit of federal financial participation in federal fiscal year 2026 for the |
disproportionate share payments; and |
(3) That the Pool D allotment shall be distributed among the participating hospitals in direct |
proportion to the individual participating hospital’s uncompensated-care costs for the base year, |
inflated by the uncompensated-care index to the total uncompensated-care costs for the base year |
inflated by the uncompensated-care index of all participating hospitals. The disproportionate share |
payments shall be made on or before June 30, 2026, and are expressly conditioned upon approval |
on or before June 23, 2026, by the Secretary of the United States Department of Health and Human |
Services, or their authorized representative, of all Medicaid state plan amendments necessary to |
secure for the state the benefit of federal financial participation in federal fiscal year 2026 for the |
disproportionate share payments. |
(d) No provision is made pursuant to this chapter for disproportionate-share hospital |
payments to participating hospitals for uncompensated-care costs related to graduate medical |
education programs. |
(e) The executive office of health and human services is directed, on at least a monthly |
basis, to collect patient-level uninsured information, including, but not limited to, demographics, |
services rendered, and reason for uninsured status from all hospitals licensed in Rhode Island. |
(f) [Deleted by P.L. 2019, ch. 88, art. 13, § 6.] |
SECTION 6. Section 40-8.9-9 of the General Laws in Chapter 40-8.9 entitled "Medical |
Assistance — Long-Term Care Service and Finance Reform" is hereby amended to read as follows: |
40-8.9-9. Long-term-care rebalancing system reform goal. |
(a) Notwithstanding any other provision of state law, the executive office of health and |
human services is authorized and directed to apply for, and obtain, any necessary waiver(s), waiver |
amendment(s), and/or state-plan amendments from the Secretary of the United States Department |
of Health and Human Services, and to promulgate rules necessary to adopt an affirmative plan of |
program design and implementation that addresses the goal of allocating a minimum of fifty percent |
(50%) of Medicaid long-term-care funding for persons aged sixty-five (65) and over and adults |
with disabilities, in addition to services for persons with developmental disabilities, to home- and |
community-based care; provided, further, the executive office shall report annually as part of its |
budget submission, the percentage distribution between institutional care and home- and |
community-based care by population and shall report current and projected waiting lists for long- |
term-care and home- and community-based care services. The executive office is further authorized |
and directed to prioritize investments in home- and community-based care and to maintain the |
integrity and financial viability of all current long-term-care services while pursuing this goal. |
(b) The reformed long-term-care system rebalancing goal is person-centered and |
encourages individual self-determination, family involvement, interagency collaboration, and |
individual choice through the provision of highly specialized and individually tailored home-based |
services. Additionally, individuals with severe behavioral, physical, or developmental disabilities |
must have the opportunity to live safe and healthful lives through access to a wide range of |
supportive services in an array of community-based settings, regardless of the complexity of their |
medical condition, the severity of their disability, or the challenges of their behavior. Delivery of |
services and supports in less-costly and less-restrictive community settings will enable children, |
adolescents, and adults to be able to curtail, delay, or avoid lengthy stays in long-term-care |
institutions, such as behavioral health residential-treatment facilities, long-term-care hospitals, |
intermediate-care facilities, and/or skilled nursing facilities. |
(c) Pursuant to federal authority procured under § 42-7.2-16, the executive office of health |
and human services is directed and authorized to adopt a tiered set of criteria to be used to determine |
eligibility for services. The criteria shall be developed in collaboration with the state’s health and |
human services departments and, to the extent feasible, any consumer group, advisory board, or |
other entity designated for these purposes, and shall encompass eligibility determinations for long- |
term-care services in nursing facilities, hospitals, and intermediate-care facilities for persons with |
intellectual disabilities, as well as home- and community-based alternatives, and shall provide a |
common standard of income eligibility for both institutional and home- and community-based care. |
The executive office is authorized to adopt clinical and/or functional criteria for admission to a |
nursing facility, hospital, or intermediate-care facility for persons with intellectual disabilities that |
are more stringent than those employed for access to home- and community-based services. The |
executive office is also authorized to promulgate rules that define the frequency of re-assessments |
for services provided for under this section. Levels of care may be applied in accordance with the |
following: |
(1) The executive office shall continue to apply the level-of-care criteria in effect on April |
1, 2021, for any recipient determined eligible for and receiving Medicaid-funded long-term services |
and supports in a nursing facility, hospital, or intermediate-care facility for persons with intellectual |
disabilities on or before that date, unless: |
(i) The recipient transitions to home- and community-based services because he or she |
would no longer meet the level-of-care criteria in effect on April 1, 2021; or |
(ii) The recipient chooses home- and community-based services over the nursing facility, |
hospital, or intermediate-care facility for persons with intellectual disabilities. For the purposes of |
this section, a failed community placement, as defined in regulations promulgated by the executive |
office, shall be considered a condition of clinical eligibility for the highest level of care. The |
executive office shall confer with the long-term-care ombudsperson with respect to the |
determination of a failed placement under the ombudsperson’s jurisdiction. Should any Medicaid |
recipient eligible for a nursing facility, hospital, or intermediate-care facility for persons with |
intellectual disabilities as of April 1, 2021, receive a determination of a failed community |
placement, the recipient shall have access to the highest level of care; furthermore, a recipient who |
has experienced a failed community placement shall be transitioned back into his or hertheir former |
nursing home, hospital, or intermediate-care facility for persons with intellectual disabilities |
whenever possible. Additionally, residents shall only be moved from a nursing home, hospital, or |
intermediate-care facility for persons with intellectual disabilities in a manner consistent with |
applicable state and federal laws. |
(2) Any Medicaid recipient eligible for the highest level of care who voluntarily leaves a |
nursing home, hospital, or intermediate-care facility for persons with intellectual disabilities shall |
not be subject to any wait list for home- and community-based services. |
(3) No nursing home, hospital, or intermediate-care facility for persons with intellectual |
disabilities shall be denied payment for services rendered to a Medicaid recipient on the grounds |
that the recipient does not meet level-of-care criteria unless and until the executive office has: |
(i) Performed an individual assessment of the recipient at issue and provided written notice |
to the nursing home, hospital, or intermediate-care facility for persons with intellectual disabilities |
that the recipient does not meet level-of-care criteria; and |
(ii) The recipient has either appealed that level-of-care determination and been |
unsuccessful, or any appeal period available to the recipient regarding that level-of-care |
determination has expired. |
(d) The executive office is further authorized to consolidate all home- and community- |
based services currently provided pursuant to 42 U.S.C. § 1396n into a single system of home- and |
community-based services that include options for consumer direction and shared living. The |
resulting single home- and community-based services system shall replace and supersede all 42 |
U.S.C. § 1396n programs when fully implemented. Notwithstanding the foregoing, the resulting |
single program home- and community-based services system shall include the continued funding |
of assisted-living services at any assisted-living facility financed by the Rhode Island housing and |
mortgage finance corporation prior to January 1, 2006, and shall be in accordance with chapter 66.8 |
of title 42 as long as assisted-living services are a covered Medicaid benefit. |
(e) The executive office is authorized to promulgate rules that permit certain optional |
services including, but not limited to, homemaker services, home modifications, respite, and |
physical therapy evaluations to be offered to persons at risk for Medicaid-funded long-term care |
subject to availability of state-appropriated funding for these purposes. |
(f) To promote the expansion of home- and community-based service capacity, the |
executive office is authorized to pursue payment methodology reforms that increase access to |
homemaker, personal care (home health aide), assisted living, adult supportive-care homes, and |
adult day services, as follows: |
(1) Development of revised or new Medicaid certification standards that increase access to |
service specialization and scheduling accommodations by using payment strategies designed to |
achieve specific quality and health outcomes. |
(2) Development of Medicaid certification standards for state-authorized providers of adult |
day services, excluding providers of services authorized under § 40.1-24-1(3), assisted living, and |
adult supportive care (as defined under chapter 17.24 of title 23) that establish for each, an acuity- |
based, tiered service and payment methodology tied to: licensure authority; level of beneficiary |
needs; the scope of services and supports provided; and specific quality and outcome measures. |
The standards for adult day services for persons eligible for Medicaid-funded long-term |
services may differ from those who do not meet the clinical/functional criteria set forth in § 40- |
8.10-3. |
(3) As the state’s Medicaid program seeks to assist more beneficiaries requiring long-term |
services and supports in home- and community-based settings, the demand for home-care workers |
has increased, and wages for these workers has not kept pace with neighboring states, leading to |
high turnover and vacancy rates in the state’s home-care industry, the executive office shall institute |
a one-time increase in the base-payment rates for FY 2019, as described below, for home-care |
service providers to promote increased access to and an adequate supply of highly trained home- |
healthcare professionals, in amount to be determined by the appropriations process, for the purpose |
of raising wages for personal care attendants and home health aides to be implemented by such |
providers. |
(i) A prospective base adjustment, effective not later than July 1, 2018, of ten percent (10%) |
of the current base rate for home-care providers, home nursing care providers, and hospice |
providers contracted with the executive office of health and human services and its subordinate |
agencies to deliver Medicaid fee-for-service personal care attendant services. |
(ii) A prospective base adjustment, effective not later than July 1, 2018, of twenty percent |
(20%) of the current base rate for home-care providers, home nursing care providers, and hospice |
providers contracted with the executive office of health and human services and its subordinate |
agencies to deliver Medicaid fee-for-service skilled nursing and therapeutic services and hospice |
care. |
(iii) Effective upon passage of this section, hospice provider reimbursement, exclusively |
for room and board expenses for individuals residing in a skilled nursing facility, shall revert to the |
rate methodology in effect on June 30, 2018, and these room and board expenses shall be exempted |
from any and all annual rate increases to hospice providers as provided for in this section. |
(iv) On the first of July in each year, beginning on July 1, 2019, the executive office of |
health and human services will initiate an annual inflation increase to the base rate for home-care |
providers, home nursing care providers, and hospice providers contracted with the executive office |
and its subordinate agencies to deliver Medicaid fee-for-service personal care attendant services, |
skilled nursing and therapeutic services and hospice care. The base rate increase shall be a |
percentage amount equal to the New England Consumer Price Index card as determined by the |
United States Department of Labor for medical care and for compliance with all federal and state |
laws, regulations, and rules, and all national accreditation program requirements., except as of July |
1, 2025, and thereafter, when no annual inflation increase shall occur for these rates. |
(g) As the state’s Medicaid program seeks to assist more beneficiaries requiring long-term |
services and supports in home- and community-based settings, the demand for home-care workers |
has increased, and wages for these workers has not kept pace with neighboring states, leading to |
high turnover and vacancy rates in the state’s home-care industry. To promote increased access to |
and an adequate supply of direct-care workers, the executive office shall institute a payment |
methodology change, in Medicaid fee-for-service and managed care, for FY 2022, that shall be |
passed through directly to the direct-care workers’ wages who are employed by home nursing care |
and home-care providers licensed by the Rhode Island department of health, as described below: |
(1) Effective July 1, 2021, increase the existing shift differential modifier by $0.19 per |
fifteen (15) minutes for personal care and combined personal care/homemaker. |
(i) Employers must pass on one hundred percent (100%) of the shift differential modifier |
increase per fifteen-minute (15) unit of service to the CNAs who rendered such services. This |
compensation shall be provided in addition to the rate of compensation that the employee was |
receiving as of June 30, 2021. For an employee hired after June 30, 2021, the agency shall use not |
less than the lowest compensation paid to an employee of similar functions and duties as of June |
30, 2021, as the base compensation to which the increase is applied. |
(ii) Employers must provide to EOHHS an annual compliance statement showing wages |
as of June 30, 2021, amounts received from the increases outlined herein, and compliance with this |
section by July 1, 2022. EOHHS may adopt any additional necessary regulations and processes to |
oversee this subsection. |
(2) Effective January 1, 2022, establish a new behavioral healthcare enhancement of $0.39 |
per fifteen (15) minutes for personal care, combined personal care/homemaker, and homemaker |
only for providers who have at least thirty percent (30%) of their direct-care workers (which |
includes certified nursing assistants (CNA) and homemakers) certified in behavioral healthcare |
training. |
(i) Employers must pass on one hundred percent (100%) of the behavioral healthcare |
enhancement per fifteen (15) minute unit of service rendered by only those CNAs and homemakers |
who have completed the thirty (30) hour behavioral health certificate training program offered by |
Rhode Island College, or a training program that is prospectively determined to be compliant per |
EOHHS, to those CNAs and homemakers. This compensation shall be provided in addition to the |
rate of compensation that the employee was receiving as of December 31, 2021. For an employee |
hired after December 31, 2021, the agency shall use not less than the lowest compensation paid to |
an employee of similar functions and duties as of December 31, 2021, as the base compensation to |
which the increase is applied. |
(ii) By January 1, 2023, employers must provide to EOHHS an annual compliance |
statement showing wages as of December 31, 2021, amounts received from the increases outlined |
herein, and compliance with this section, including which behavioral healthcare training programs |
were utilized. EOHHS may adopt any additional necessary regulations and processes to oversee |
this subsection. |
(h) The executive office shall implement a long-term-care-options counseling program to |
provide individuals, or their representatives, or both, with long-term-care consultations that shall |
include, at a minimum, information about: long-term-care options, sources, and methods of both |
public and private payment for long-term-care services and an assessment of an individual’s |
functional capabilities and opportunities for maximizing independence. Each individual admitted |
to, or seeking admission to, a long-term-care facility, regardless of the payment source, shall be |
informed by the facility of the availability of the long-term-care-options counseling program and |
shall be provided with long-term-care-options consultation if they so request. Each individual who |
applies for Medicaid long-term-care services shall be provided with a long-term-care consultation. |
(i) The executive office shall implement, no later than January 1, 2024, a statewide network |
and rate methodology for conflict-free case management for individuals receiving Medicaid-funded |
home and community-based services. The executive office shall coordinate implementation with |
the state’s health and human services departments and divisions authorized to deliver Medicaid- |
funded home and community-based service programs, including the department of behavioral |
healthcare, developmental disabilities and hospitals; the department of human services; and the |
office of healthy aging. It is in the best interest of the Rhode Islanders eligible to receive Medicaid |
home and community-based services under this chapter, title 40.1, title 42, or any other general |
laws to provide equitable access to conflict-free case management that shall include person- |
centered planning, service arranging, and quality monitoring in the amount, duration, and scope |
required by federal law and regulations. It is necessary to ensure that there is a robust network of |
qualified conflict-free case management entities with the capacity to serve all participants on a |
statewide basis and in a manner that promotes choice, self-reliance, and community integration. |
The executive office, as the designated single state Medicaid authority and agency responsible for |
coordinating policy and planning for health and human services under § 42-7.2-1 et seq., is directed |
to establish a statewide conflict-free case management network under the management of the |
executive office and to seek any Medicaid waivers, state plan amendments, and changes in rules, |
regulations, and procedures that may be necessary to ensure that recipients of Medicaid home and |
community-based services have access to conflict-free case management in a timely manner and in |
accordance with the federal requirements that must be met to preserve financial participation. |
(j) The executive office is also authorized, subject to availability of appropriation of |
funding, and federal, Medicaid-matching funds, to pay for certain services and supports necessary |
to transition or divert beneficiaries from institutional or restrictive settings and optimize their health |
and safety when receiving care in a home or the community. The secretary is authorized to obtain |
any state plan or waiver authorities required to maximize the federal funds available to support |
expanded access to home- and community-transition and stabilization services; provided, however, |
payments shall not exceed an annual or per-person amount. |
(k) To ensure persons with long-term-care needs who remain living at home have adequate |
resources to deal with housing maintenance and unanticipated housing-related costs, the secretary |
is authorized to develop higher resource eligibility limits for persons or obtain any state plan or |
waiver authorities necessary to change the financial eligibility criteria for long-term services and |
supports to enable beneficiaries receiving home and community waiver services to have the |
resources to continue living in their own homes or rental units or other home-based settings. |
(l) The executive office shall implement, no later than January 1, 2016, the following home- |
and community-based service and payment reforms: |
(1) [Deleted by P.L. 2021, ch. 162, art. 12, § 6.] |
(2) Adult day services level of need criteria and acuity-based, tiered-payment |
methodology; and |
(3) Payment reforms that encourage home- and community-based providers to provide the |
specialized services and accommodations beneficiaries need to avoid or delay institutional care. |
(m) The secretary is authorized to seek any Medicaid section 1115 waiver or state-plan |
amendments and take any administrative actions necessary to ensure timely adoption of any new |
or amended rules, regulations, policies, or procedures and any system enhancements or changes, |
for which appropriations have been authorized, that are necessary to facilitate implementation of |
the requirements of this section by the dates established. The secretary shall reserve the discretion |
to exercise the authority established under §§ 42-7.2-5(6)(v) and 42-7.2-6.1, in consultation with |
the governor, to meet the legislative directives established herein. |
SECTION 7. Sections 40-8.10-2, 40-8.10-3 and 40-8.10-4 of the General Laws in Chapter |
40-8.10 entitled "Long-Term Care Service Reform for Medicaid Eligible Individuals" are hereby |
amended to read as follows: |
40-8.10-2. Definitions. |
As used in this chapter: |
(1) “Core services” mean homemaker services, environmental modifications (home |
accessibility adaptations, special medical equipment (minor assistive devices), meals on wheels |
(home delivered meals), personal emergency response (PERS), licensed practical nurse services, |
community transition services, residential supports, day supports, supported employment, |
supported living arrangements, private duty nursing, supports for consumer direction (supports |
facilitation), participant directed goods and services, case management, senior companion services, |
assisted living, personal care assistance services and respite. |
(2) “Preventive services” mean homemaker services, minor environmental modifications, |
physical therapy evaluation and services, and respite services. |
40-8.10-3. Levels of care. |
(a) The secretary of the executive office of health and human services shall coordinate |
responsibilities for long-term-care assessment in accordance with the provisions of this chapter. |
Importance shall be placed upon the proper and consistent determination of levels of care across |
the state departments for each long-term-care setting, including behavioral health residential |
treatment facilities, long-term-care hospitals, intermediate-care facilities, and/or skilled nursing |
facilities. Specialized plans of care that meet the needs of the individual Medicaid recipients shall |
be coordinated and consistent across all state departments. The development of care plans shall be |
person-centered and shall support individual self-determination, family involvement, when |
appropriate, individual choice, and interdepartmental collaboration. |
(b) Levels of care for long-term-care institutions (behavioral health residential treatment |
facilities, long-term-care hospitals, intermediate-care facilities and/or skilled nursing facilities), for |
which alternative community-based services and supports are available, shall be established |
pursuant to § 40-8.9-9. The structure of the three (3) two (2) levels of care is as follows: |
(1) Highest level of care. Individuals who are determined, based on medical need, to require |
the institutional level of care will have the choice to receive services in a long-term-care institution |
or in a home- and community-based setting. |
(2) High level of care. Individuals who are determined, based on medical need, to benefit |
from home- and community-based services. |
(3) Preventive level of care. Individuals who do not presently need an institutional level of |
care but who need services targeted at preventing admission, re-admissions, or reducing lengths of |
stay in an institution. |
(c) Determinations of levels of care and the provision of long-term-care health services |
shall be determined in accordance with this section and shall be in accordance with the applicable |
provisions of § 40-8.9-9. |
40-8.10-4. Long-term care assessment and coordination. |
(a) The executive office of health and human services shall implement a long-term-care- |
options counseling program to provide individuals or their representative, or both, with long-term- |
care consultations that shall include, at a minimum, information about long-term-care options, |
sources and methods of both public and private payment for long-term-care services; information |
on caregiver support services, including respite care; and an assessment of an individual’s |
functional capabilities and opportunities for maximizing independence. Each individual admitted |
to or seeking admission to a long-term-care facility, regardless of the payment source, shall be |
informed by the facility of the availability of the long-term-care-options counseling program and |
shall be provided with a long-term-care-options consultation, if he or shethe person so requests. |
Each individual who applies for Medicaid long-term-care services shall be provided with a long- |
term-care consultation. |
(b) Core and preventative home- and community-based services defined and delineated in |
§ 40-8.10-2 shall be provided only to those individuals who meet one of the levels of care provided |
for in this chapter. Other long-term-care services authorized by the federal government, such as |
medication management, may also be provided to Medicaid-eligible recipients who have |
established the requisite need. |
(c) The assessments for individuals conducted in accordance with this section shall serve |
as the basis for individual budgets for those medical assistance recipients eligible to receive services |
utilizing a self-directed delivery system. |
(d) Nothing in this section shall prohibit the secretary of the executive office of health and |
human services, or the directors of that office’s departments from utilizing community agencies or |
contractors when appropriate to perform assessment functions outlined in this chapter. |
SECTION 8. Section 42-7.2-5 of the General Laws in Chapter 42-7.2 entitled "Office of |
Health and Human Services" is hereby amended to read as follows: |
42-7.2-5. Duties of the secretary. |
The secretary shall be subject to the direction and supervision of the governor for the |
oversight, coordination, and cohesive direction of state-administered health and human services |
and in ensuring the laws are faithfully executed, notwithstanding any law to the contrary. In this |
capacity, the secretary of the executive office of health and human services (EOHHS) shall be |
authorized to: |
(1) Coordinate the administration and financing of healthcare benefits, human services, and |
programs including those authorized by the state’s Medicaid section 1115 demonstration waiver |
and, as applicable, the Medicaid state plan under Title XIX of the U.S. Social Security Act. |
However, nothing in this section shall be construed as transferring to the secretary the powers, |
duties, or functions conferred upon the departments by Rhode Island public and general laws for |
the administration of federal/state programs financed in whole or in part with Medicaid funds or |
the administrative responsibility for the preparation and submission of any state plans, state plan |
amendments, or authorized federal waiver applications, once approved by the secretary. |
(2) Serve as the governor’s chief advisor and liaison to federal policymakers on Medicaid |
reform issues as well as the principal point of contact in the state on any such related matters. |
(3)(i) Review and ensure the coordination of the state’s Medicaid section 1115 |
demonstration waiver requests and renewals as well as any initiatives and proposals requiring |
amendments to the Medicaid state plan or formal amendment changes, as described in the special |
terms and conditions of the state’s Medicaid section 1115 demonstration waiver with the potential |
to affect the scope, amount, or duration of publicly funded healthcare services, provider payments |
or reimbursements, or access to or the availability of benefits and services as provided by Rhode |
Island general and public laws. The secretary shall consider whether any such changes are legally |
and fiscally sound and consistent with the state’s policy and budget priorities. The secretary shall |
also assess whether a proposed change is capable of obtaining the necessary approvals from federal |
officials and achieving the expected positive consumer outcomes. Department directors shall, |
within the timelines specified, provide any information and resources the secretary deems necessary |
in order to perform the reviews authorized in this section. |
(ii) Direct the development and implementation of any Medicaid policies, procedures, or |
systems that may be required to assure successful operation of the state’s health and human services |
integrated eligibility system and coordination with HealthSource RI, the state’s health insurance |
marketplace. |
(iii) Beginning in 2015, conduct on a biennial basis a comprehensive review of the |
Medicaid eligibility criteria for one or more of the populations covered under the state plan or a |
waiver to ensure consistency with federal and state laws and policies, coordinate and align systems, |
and identify areas for improving quality assurance, fair and equitable access to services, and |
opportunities for additional financial participation. |
(iv) Implement service organization and delivery reforms that facilitate service integration, |
increase value, and improve quality and health outcomes. |
(4) Beginning in 2020, prepare and submit to the governor, the chairpersons of the house |
and senate finance committees, the caseload estimating conference, and to the joint legislative |
committee for health-care oversight, by no later than September 15 of each year, a comprehensive |
overview of all Medicaid expenditures outcomes, administrative costs, and utilization rates. The |
overview shall include, but not be limited to, the following information: |
(i) Expenditures under Titles XIX and XXI of the Social Security Act, as amended; |
(ii) Expenditures, outcomes, and utilization rates by population and sub-population served |
(e.g., families with children, persons with disabilities, children in foster care, children receiving |
adoption assistance, adults ages nineteen (19) to sixty-four (64), and elders); |
(iii) Expenditures, outcomes, and utilization rates by each state department or other |
municipal or public entity receiving federal reimbursement under Titles XIX and XXI of the Social |
Security Act, as amended; |
(iv) Expenditures, outcomes, and utilization rates by type of service and/or service |
provider; |
(v) Expenditures by mandatory population receiving mandatory services and, reported |
separately, optional services, as well as optional populations receiving mandatory services and, |
reported separately, optional services for each state agency receiving Title XIX and XXI funds; and |
(vi) Information submitted to the Centers for Medicare & Medicaid Services for the |
mandatory annual state reporting of the Core Set of Children’s Health Care Quality Measures for |
Medicaid and Children’s Health Insurance Program, behavioral health measures on the Core Set of |
Adult Health Care Quality Measures for Medicaid and the Core Sets of Health Home Quality |
Measures for Medicaid to ensure compliance with the Bipartisan Budget Act of 2018, Pub. L. No. |
115-123. |
The directors of the departments, as well as local governments and school departments, |
shall assist and cooperate with the secretary in fulfilling this responsibility by providing whatever |
resources, information and support shall be necessary. |
(5) Resolve administrative, jurisdictional, operational, program, or policy conflicts among |
departments and their executive staffs and make necessary recommendations to the governor. |
(6) Ensure continued progress toward improving the quality, the economy, the |
accountability, and the efficiency of state-administered health and human services. In this capacity, |
the secretary shall: |
(i) Direct implementation of reforms in the human resources practices of the executive |
office and the departments that streamline and upgrade services, achieve greater economies of scale |
and establish the coordinated system of the staff education, cross-training, and career development |
services necessary to recruit and retain a highly-skilled, responsive, and engaged health and human |
services workforce; |
(ii) Encourage EOHHS-wide consumer-centered approaches to service design and delivery |
that expand their capacity to respond efficiently and responsibly to the diverse and changing needs |
of the people and communities they serve; |
(iii) Develop all opportunities to maximize resources by leveraging the state’s purchasing |
power, centralizing fiscal service functions related to budget, finance, and procurement, |
centralizing communication, policy analysis and planning, and information systems and data |
management, pursuing alternative funding sources through grants, awards, and partnerships and |
securing all available federal financial participation for programs and services provided EOHHS- |
wide; |
(iv) Improve the coordination and efficiency of health and human services legal functions |
by centralizing adjudicative and legal services and overseeing their timely and judicious |
administration; |
(v) Facilitate the rebalancing of the long-term system by creating an assessment and |
coordination organization or unit for the expressed purpose of developing and implementing |
procedures EOHHS-wide that ensure that the appropriate publicly funded health services are |
provided at the right time and in the most appropriate and least restrictive setting; |
(vi) Strengthen health and human services program integrity, quality control and |
collections, and recovery activities by consolidating functions within the office in a single unit that |
ensures all affected parties pay their fair share of the cost of services and are aware of alternative |
financing; |
(vii) Assure protective services are available to vulnerable elders and adults with |
developmental and other disabilities by reorganizing existing services, establishing new services |
where gaps exist, and centralizing administrative responsibility for oversight of all related |
initiatives and programs. |
(7) Prepare and integrate comprehensive budgets for the health and human services |
departments and any other functions and duties assigned to the office. The budgets shall be |
submitted to the state budget office by the secretary, for consideration by the governor, on behalf |
of the state’s health and human services agencies in accordance with the provisions set forth in § |
35-3-4. |
(8) Utilize objective data to evaluate health and human services policy goals, resource use |
and outcome evaluation and to perform short and long-term policy planning and development. |
(9) Establishment of an integrated approach to interdepartmental information and data |
management that complements and furthers the goals of the unified health infrastructure project |
initiative and that will facilitate the transition to a consumer-centered integrated system of state- |
administered health and human services. |
(10) At the direction of the governor or the general assembly, conduct independent reviews |
of state-administered health and human services programs, policies and related agency actions and |
activities and assist the department directors in identifying strategies to address any issues or areas |
of concern that may emerge thereof. The department directors shall provide any information and |
assistance deemed necessary by the secretary when undertaking such independent reviews. |
(11) Provide regular and timely reports to the governor and make recommendations with |
respect to the state’s health and human services agenda. |
(12) Employ such personnel and contract for such consulting services as may be required |
to perform the powers and duties lawfully conferred upon the secretary. |
(13) Assume responsibility for complying with the provisions of any general or public law |
or regulation related to the disclosure, confidentiality, and privacy of any information or records, |
in the possession or under the control of the executive office or the departments assigned to the |
executive office, that may be developed or acquired or transferred at the direction of the governor |
or the secretary for purposes directly connected with the secretary’s duties set forth herein. |
(14) Hold the director of each health and human services department accountable for their |
administrative, fiscal, and program actions in the conduct of the respective powers and duties of |
their agencies. |
(15) Identify opportunities for inclusion with the EOHHS’ October 1, 2023 budget |
,submission, to remove fixed eligibility thresholds for programs under its purview by establishing |
sliding scale decreases in benefits commensurate with income increases up to four hundred fifty |
percent (450%) of the federal poverty level. These shall include but not be limited to, medical |
assistance, childcare assistance, and food assistance. |
(16) The secretary shall convene, in consultation with the governor, an advisory working |
group to assist in the review and analysis of potential impacts of any adopted federal actions related |
to Medicaid programs. The working group shall develop options for administrative action or |
general assembly consideration that may be needed to address any federal funding changes that |
impact Rhode Island's Medicaid programs. |
(i) The advisory working group may include, but not be limited to, the secretary of health |
and human services, director of management and budget, and designees from the following: state |
agencies, businesses, healthcare, public sector unions, and advocates. |
(ii) As soon as practicable after the enactment federal budget for fiscal year 2026, but no |
later than October 31, 2025, the advisory working group shall forward a report to the governor, |
speaker of the house, and president of the senate containing the findings, recommendations and |
options for consideration to become compliant with federal changes prior to the governor's budget |
submission pursuant to § 35-3-7. |
SECTION 9. Sections 42-14.5-2.1 and 42-14.5-3 of the General Laws in Chapter 42-14.5 |
entitled "The Rhode Island Health Care Reform Act of 2004 — Health Insurance Oversight" are |
hereby amended to read as follows: |
42-14.5-2.1. Definitions. |
As used in this chapter: |
(1) “Accountability standards” means measures including service processes, client and |
population outcomes, practice standard compliance and fiscal integrity of social and human service |
providers on the individual contractual level and service type for all state contacts of the state or |
any subdivision or agency to include, but not limited to, the department of children, youth and |
families (DCYF), the department of behavioral healthcare, developmental disabilities and hospitals |
(BHDDH), the department of human services (DHS), the department of health (DOH), and |
Medicaid. This may include mandatory reporting, consolidated, standardized reporting, audits |
regardless of organizational tax status, and accountability dashboards of aforementioned state |
departments or subdivisions that are regularly shared with the public. |
(2) “Executive Office of Health and Human Services (EOHHS)” means the department |
that serves as “principal agency of the executive branch of state government” (§ 42-7.2-2) |
responsible for managing the departments and offices of: health (RIDOH), human services (DHS), |
healthy aging (OHA), veterans services (VETS), children, youth and families (DCYF), and |
behavioral healthcare, developmental disabilities and hospitals (BHDDH). EOHHS is also |
designated as the single state agency with authority to administer the Medicaid program in Rhode |
Island. |
(3) "Primary care services" means, for the purposes of reporting required under § 42-14.5- |
3(t), professional services rendered by primary care providers at a primary care site of care, |
including care management services performed in the context of team-based primary care. |
(3)(4) “Rate review” means the process of reviewing and reporting of specific trending |
factors that influence the cost of service that informs rate setting. |
(4)(5) “Rate setting” means the process of establishing rates for social and human service |
programs that are based on a thorough rate review process. |
(5)(6) “Social and human service program” means a social, mental health, developmental |
disability, child welfare, juvenile justice, prevention services, habilitative, rehabilitative, substance |
use disorder treatment, residential care, adult or adolescent day services, vocational, employment |
and training, or aging service program or accommodations purchased by the state. |
(6)(7) “Social and human service provider” means a provider of social and human service |
programs pursuant to a contract with the state or any subdivision or agency to include, but not be |
limited to, the department of children, youth and families (DCYF), the department of behavioral |
healthcare, developmental disabilities and hospitals (BHDDH), the department of human services |
(DHS), the department of health (DOH), and Medicaid. |
(7)(8) “State government and the provider network” refers to the contractual relationship |
between a state agency or subdivision of a state agency and private companies the state contracts |
with to provide the network of mandated and discretionary social and human services. |
42-14.5-3. Powers and duties. |
The health insurance commissioner shall have the following powers and duties: |
(a) To conduct quarterly public meetings throughout the state, separate and distinct from |
rate hearings pursuant to § 42-62-13, regarding the rates, services, and operations of insurers |
licensed to provide health insurance in the state; the effects of such rates, services, and operations |
on consumers, medical care providers, patients, and the market environment in which the insurers |
operate; and efforts to bring new health insurers into the Rhode Island market. Notice of not less |
than ten (10) days of the hearing(s) shall go to the general assembly, the governor, the Rhode Island |
Medical Society, the Hospital Association of Rhode Island, the director of health, the attorney |
general, and the chambers of commerce. Public notice shall be posted on the department’s website |
and given in the newspaper of general circulation, and to any entity in writing requesting notice. |
(b) To make recommendations to the governor and the house of representatives and senate |
finance committees regarding healthcare insurance and the regulations, rates, services, |
administrative expenses, reserve requirements, and operations of insurers providing health |
insurance in the state, and to prepare or comment on, upon the request of the governor or |
chairpersons of the house or senate finance committees, draft legislation to improve the regulation |
of health insurance. In making the recommendations, the commissioner shall recognize that it is |
the intent of the legislature that the maximum disclosure be provided regarding the reasonableness |
of individual administrative expenditures as well as total administrative costs. The commissioner |
shall make recommendations on the levels of reserves, including consideration of: targeted reserve |
levels; trends in the increase or decrease of reserve levels; and insurer plans for distributing excess |
reserves. |
(c) To establish a consumer/business/labor/medical advisory council to obtain information |
and present concerns of consumers, business, and medical providers affected by health insurance |
decisions. The council shall develop proposals to allow the market for small business health |
insurance to be affordable and fairer. The council shall be involved in the planning and conduct of |
the quarterly public meetings in accordance with subsection (a). The advisory council shall develop |
measures to inform small businesses of an insurance complaint process to ensure that small |
businesses that experience rate increases in a given year may request and receive a formal review |
by the department. The advisory council shall assess views of the health provider community |
relative to insurance rates of reimbursement, billing, and reimbursement procedures, and the |
insurers’ role in promoting efficient and high-quality health care. The advisory council shall issue |
an annual report of findings and recommendations to the governor and the general assembly and |
present its findings at hearings before the house and senate finance committees. The advisory |
council is to be diverse in interests and shall include representatives of community consumer |
organizations; small businesses, other than those involved in the sale of insurance products; and |
hospital, medical, and other health provider organizations. Such representatives shall be nominated |
by their respective organizations. The advisory council shall be co-chaired by the health insurance |
commissioner and a community consumer organization or small business member to be elected by |
the full advisory council. |
(d) To establish and provide guidance and assistance to a subcommittee (“the professional- |
provider-health-plan work group”) of the advisory council created pursuant to subsection (c), |
composed of healthcare providers and Rhode Island licensed health plans. This subcommittee shall |
include in its annual report and presentation before the house and senate finance committees the |
following information: |
(1) A method whereby health plans shall disclose to contracted providers the fee schedules |
used to provide payment to those providers for services rendered to covered patients; |
(2) A standardized provider application and credentials verification process, for the |
purpose of verifying professional qualifications of participating healthcare providers; |
(3) The uniform health plan claim form utilized by participating providers; |
(4) Methods for health maintenance organizations, as defined by § 27-41-2, and nonprofit |
hospital or medical service corporations, as defined by chapters 19 and 20 of title 27, to make |
facility-specific data and other medical service-specific data available in reasonably consistent |
formats to patients regarding quality and costs. This information would help consumers make |
informed choices regarding the facilities and clinicians or physician practices at which to seek care. |
Among the items considered would be the unique health services and other public goods provided |
by facilities and clinicians or physician practices in establishing the most appropriate cost |
comparisons; |
(5) All activities related to contractual disclosure to participating providers of the |
mechanisms for resolving health plan/provider disputes; |
(6) The uniform process being utilized for confirming, in real time, patient insurance |
enrollment status, benefits coverage, including copays and deductibles; |
(7) Information related to temporary credentialing of providers seeking to participate in the |
plan’s network and the impact of the activity on health plan accreditation; |
(8) The feasibility of regular contract renegotiations between plans and the providers in |
their networks; and |
(9) Efforts conducted related to reviewing impact of silent PPOs on physician practices. |
(e) To enforce the provisions of title 27 and title 42 as set forth in § 42-14-5(d). |
(f) To provide analysis of the Rhode Island affordable health plan reinsurance fund. The |
fund shall be used to effectuate the provisions of §§ 27-18.5-9 and 27-50-17. |
(g) To analyze the impact of changing the rating guidelines and/or merging the individual |
health insurance market, as defined in chapter 18.5 of title 27, and the small-employer health |
insurance market, as defined in chapter 50 of title 27, in accordance with the following: |
(1) The analysis shall forecast the likely rate increases required to effect the changes |
recommended pursuant to the preceding subsection (g) in the direct-pay market and small-employer |
health insurance market over the next five (5) years, based on the current rating structure and |
current products. |
(2) The analysis shall include examining the impact of merging the individual and small- |
employer markets on premiums charged to individuals and small-employer groups. |
(3) The analysis shall include examining the impact on rates in each of the individual and |
small-employer health insurance markets and the number of insureds in the context of possible |
changes to the rating guidelines used for small-employer groups, including: community rating |
principles; expanding small-employer rate bonds beyond the current range; increasing the employer |
group size in the small-group market; and/or adding rating factors for broker and/or tobacco use. |
(4) The analysis shall include examining the adequacy of current statutory and regulatory |
oversight of the rating process and factors employed by the participants in the proposed, new |
merged market. |
(5) The analysis shall include assessment of possible reinsurance mechanisms and/or |
federal high-risk pool structures and funding to support the health insurance market in Rhode Island |
by reducing the risk of adverse selection and the incremental insurance premiums charged for this |
risk, and/or by making health insurance affordable for a selected at-risk population. |
(6) The health insurance commissioner shall work with an insurance market merger task |
force to assist with the analysis. The task force shall be chaired by the health insurance |
commissioner and shall include, but not be limited to, representatives of the general assembly, the |
business community, small-employer carriers as defined in § 27-50-3, carriers offering coverage in |
the individual market in Rhode Island, health insurance brokers, and members of the general public. |
(7) For the purposes of conducting this analysis, the commissioner may contract with an |
outside organization with expertise in fiscal analysis of the private insurance market. In conducting |
its study, the organization shall, to the extent possible, obtain and use actual health plan data. Said |
data shall be subject to state and federal laws and regulations governing confidentiality of health |
care and proprietary information. |
(8) The task force shall meet as necessary and include its findings in the annual report, and |
the commissioner shall include the information in the annual presentation before the house and |
senate finance committees. |
(h) To establish and convene a workgroup representing healthcare providers and health |
insurers for the purpose of coordinating the development of processes, guidelines, and standards to |
streamline healthcare administration that are to be adopted by payors and providers of healthcare |
services operating in the state. This workgroup shall include representatives with expertise who |
would contribute to the streamlining of healthcare administration and who are selected from |
hospitals, physician practices, community behavioral health organizations, each health insurer, and |
other affected entities. The workgroup shall also include at least one designee each from the Rhode |
Island Medical Society, Rhode Island Council of Community Mental Health Organizations, the |
Rhode Island Health Center Association, and the Hospital Association of Rhode Island. In any year |
that the workgroup meets and submits recommendations to the office of the health insurance |
commissioner, the office of the health insurance commissioner shall submit such recommendations |
to the health and human services committees of the Rhode Island house of representatives and the |
Rhode Island senate prior to the implementation of any such recommendations and subsequently |
shall submit a report to the general assembly by June 30, 2024. The report shall include the |
recommendations the commissioner may implement, with supporting rationale. The workgroup |
shall consider and make recommendations for: |
(1) Establishing a consistent standard for electronic eligibility and coverage verification. |
Such standard shall: |
(i) Include standards for eligibility inquiry and response and, wherever possible, be |
consistent with the standards adopted by nationally recognized organizations, such as the Centers |
for Medicare & Medicaid Services; |
(ii) Enable providers and payors to exchange eligibility requests and responses on a system- |
to-system basis or using a payor-supported web browser; |
(iii) Provide reasonably detailed information on a consumer’s eligibility for healthcare |
coverage; scope of benefits; limitations and exclusions provided under that coverage; cost-sharing |
requirements for specific services at the specific time of the inquiry; current deductible amounts; |
accumulated or limited benefits; out-of-pocket maximums; any maximum policy amounts; and |
other information required for the provider to collect the patient’s portion of the bill; |
(iv) Reflect the necessary limitations imposed on payors by the originator of the eligibility |
and benefits information; |
(v) Recommend a standard or common process to protect all providers from the costs of |
services to patients who are ineligible for insurance coverage in circumstances where a payor |
provides eligibility verification based on best information available to the payor at the date of the |
request of eligibility. |
(2) Developing implementation guidelines and promoting adoption of the guidelines for: |
(i) The use of the National Correct Coding Initiative code-edit policy by payors and |
providers in the state; |
(ii) Publishing any variations from codes and mutually exclusive codes by payors in a |
manner that makes for simple retrieval and implementation by providers; |
(iii) Use of Health Insurance Portability and Accountability Act standard group codes, |
reason codes, and remark codes by payors in electronic remittances sent to providers; |
(iv) Uniformity in the processing of claims by payors; and the processing of corrections to |
claims by providers and payors; |
(v) A standard payor-denial review process for providers when they request a |
reconsideration of a denial of a claim that results from differences in clinical edits where no single, |
common-standards body or process exists and multiple conflicting sources are in use by payors and |
providers. |
(vi) Nothing in this section, nor in the guidelines developed, shall inhibit an individual |
payor’s ability to employ, and not disclose to providers, temporary code edits for the purpose of |
detecting and deterring fraudulent billing activities. The guidelines shall require that each payor |
disclose to the provider its adjudication decision on a claim that was denied or adjusted based on |
the application of such edits and that the provider have access to the payor’s review and appeal |
process to challenge the payor’s adjudication decision. |
(vii) Nothing in this subsection shall be construed to modify the rights or obligations of |
payors or providers with respect to procedures relating to the investigation, reporting, appeal, or |
prosecution under applicable law of potentially fraudulent billing activities. |
(3) Developing and promoting widespread adoption by payors and providers of guidelines |
to: |
(i) Ensure payors do not automatically deny claims for services when extenuating |
circumstances make it impossible for the provider to obtain a preauthorization before services are |
performed or notify a payor within an appropriate standardized timeline of a patient’s admission; |
(ii) Require payors to use common and consistent processes and time frames when |
responding to provider requests for medical management approvals. Whenever possible, such time |
frames shall be consistent with those established by leading national organizations and be based |
upon the acuity of the patient’s need for care or treatment. For the purposes of this section, medical |
management includes prior authorization of services, preauthorization of services, precertification |
of services, post-service review, medical-necessity review, and benefits advisory; |
(iii) Develop, maintain, and promote widespread adoption of a single, common website |
where providers can obtain payors’ preauthorization, benefits advisory, and preadmission |
requirements; |
(iv) Establish guidelines for payors to develop and maintain a website that providers can |
use to request a preauthorization, including a prospective clinical necessity review; receive an |
authorization number; and transmit an admission notification; |
(v) Develop and implement the use of programs that implement selective prior |
authorization requirements, based on stratification of healthcare providers’ performance and |
adherence to evidence-based medicine with the input of contracted healthcare providers and/or |
provider organizations. Such criteria shall be transparent and easily accessible to contracted |
providers. Such selective prior authorization programs shall be available when healthcare providers |
participate directly with the insurer in risk-based payment contracts and may be available to |
providers who do not participate in risk-based contracts; |
(vi) Require the review of medical services, including behavioral health services, and |
prescription drugs, subject to prior authorization on at least an annual basis, with the input of |
contracted healthcare providers and/or provider organizations. Any changes to the list of medical |
services, including behavioral health services, and prescription drugs requiring prior authorization, |
shall be shared via provider-accessible websites; |
(vii) Improve communication channels between health plans, healthcare providers, and |
patients by: |
(A) Requiring transparency and easy accessibility of prior authorization requirements, |
criteria, rationale, and program changes to contracted healthcare providers and patients/health plan |
enrollees which may be satisfied by posting to provider-accessible and member-accessible |
websites; and |
(B) Supporting: |
(I) Timely submission by healthcare providers of the complete information necessary to |
make a prior authorization determination, as early in the process as possible; and |
(II) Timely notification of prior authorization determinations by health plans to impacted |
health plan enrollees, and healthcare providers, including, but not limited to, ordering providers, |
and/or rendering providers, and dispensing pharmacists which may be satisfied by posting to |
provider-accessible websites or similar electronic portals or services; |
(viii) Increase and strengthen continuity of patient care by: |
(A) Defining protections for continuity of care during a transition period for patients |
undergoing an active course of treatment, when there is a formulary or treatment coverage change |
or change of health plan that may disrupt their current course of treatment and when the treating |
physician determines that a transition may place the patient at risk; and for prescription medication |
by allowing a grace period of coverage to allow consideration of referred health plan options or |
establishment of medical necessity of the current course of treatment; |
(B) Requiring continuity of care for medical services, including behavioral health services, |
and prescription medications for patients on appropriate, chronic, stable therapy through |
minimizing repetitive prior authorization requirements; and which for prescription medication shall |
be allowed only on an annual review, with exception for labeled limitation, to establish continued |
benefit of treatment; and |
(C) Requiring communication between healthcare providers, health plans, and patients to |
facilitate continuity of care and minimize disruptions in needed treatment which may be satisfied |
by posting to provider-accessible websites or similar electronic portals or services; |
(D) Continuity of care for formulary or drug coverage shall distinguish between FDA |
designated interchangeable products and proprietary or marketed versions of a medication; |
(ix) Encourage healthcare providers and/or provider organizations and health plans to |
accelerate use of electronic prior authorization technology, including adoption of national standards |
where applicable; and |
(x) For the purposes of subsections (h)(3)(v) through (h)(3)(x) of this section, the |
workgroup meeting may be conducted in part or whole through electronic methods. |
(4) To provide a report to the house and senate, on or before January 1, 2017, with |
recommendations for establishing guidelines and regulations for systems that give patients |
electronic access to their claims information, particularly to information regarding their obligations |
to pay for received medical services, pursuant to 45 C.F.R. § 164.524. |
(5) No provision of this subsection (h) shall preclude the ongoing work of the office of |
health insurance commissioner’s administrative simplification task force, which includes meetings |
with key stakeholders in order to improve, and provide recommendations regarding, the prior |
authorization process. |
(i) To issue an anti-cancer medication report. Not later than June 30, 2014, and annually |
thereafter, the office of the health insurance commissioner (OHIC) shall provide the senate |
committee on health and human services, and the house committee on corporations, with: (1) |
Information on the availability in the commercial market of coverage for anti-cancer medication |
options; (2) For the state employee’s health benefit plan, the costs of various cancer-treatment |
options; (3) The changes in drug prices over the prior thirty-six (36) months; and (4) Member |
utilization and cost-sharing expense. |
(j) To monitor the adequacy of each health plan’s compliance with the provisions of the |
federal Mental Health Parity Act, including a review of related claims processing and |
reimbursement procedures. Findings, recommendations, and assessments shall be made available |
to the public. |
(k) To monitor the transition from fee-for-service and toward global and other alternative |
payment methodologies for the payment for healthcare services. Alternative payment |
methodologies should be assessed for their likelihood to promote access to affordable health |
insurance, health outcomes, and performance. |
(l) To report annually, no later than July 1, 2014, then biannually thereafter, on hospital |
payment variation, including findings and recommendations, subject to available resources. |
(m) Notwithstanding any provision of the general or public laws or regulation to the |
contrary, provide a report with findings and recommendations to the president of the senate and the |
speaker of the house, on or before April 1, 2014, including, but not limited to, the following |
information: |
(1) The impact of the current, mandated healthcare benefits as defined in §§ 27-18-48.1, |
27-18-60, 27-18-62, 27-18-64, similar provisions in chapters 19, 20 and 41 of title 27, and §§ 27- |
18-3(c), 27-38.2-1 et seq., or others as determined by the commissioner, on the cost of health |
insurance for fully insured employers, subject to available resources; |
(2) Current provider and insurer mandates that are unnecessary and/or duplicative due to |
the existing standards of care and/or delivery of services in the healthcare system; |
(3) A state-by-state comparison of health insurance mandates and the extent to which |
Rhode Island mandates exceed other states benefits; and |
(4) Recommendations for amendments to existing mandated benefits based on the findings |
in (m)(1), (m)(2), and (m)(3) above. |
(n) On or before July 1, 2014, the office of the health insurance commissioner, in |
collaboration with the director of health and lieutenant governor’s office, shall submit a report to |
the general assembly and the governor to inform the design of accountable care organizations |
(ACOs) in Rhode Island as unique structures for comprehensive healthcare delivery and value- |
based payment arrangements, that shall include, but not be limited to: |
(1) Utilization review; |
(2) Contracting; and |
(3) Licensing and regulation. |
(o) On or before February 3, 2015, the office of the health insurance commissioner shall |
submit a report to the general assembly and the governor that describes, analyzes, and proposes |
recommendations to improve compliance of insurers with the provisions of § 27-18-76 with regard |
to patients with mental health and substance use disorders. |
(p) To work to ensure the health insurance coverage of behavioral health care under the |
same terms and conditions as other health care, and to integrate behavioral health parity |
requirements into the office of the health insurance commissioner insurance oversight and |
healthcare transformation efforts. |
(q) To work with other state agencies to seek delivery system improvements that enhance |
access to a continuum of mental health and substance use disorder treatment in the state; and |
integrate that treatment with primary and other medical care to the fullest extent possible. |
(r) To direct insurers toward policies and practices that address the behavioral health needs |
of the public and greater integration of physical and behavioral healthcare delivery. |
(s) The office of the health insurance commissioner shall conduct an analysis of the impact |
of the provisions of § 27-38.2-1(i) on health insurance premiums and access in Rhode Island and |
submit a report of its findings to the general assembly on or before June 1, 2023. |
(t) To undertake the analyses, reports, and studies contained in this section: |
(1) The office shall hire the necessary staff and prepare a request for proposal for a qualified |
and competent firm or firms to undertake the following analyses, reports, and studies: |
(i) The firm shall undertake a comprehensive review of all social and human service |
programs having a contract with or licensed by the state or any subdivision of the department of |
children, youth and families (DCYF), the department of behavioral healthcare, developmental |
disabilities and hospitals (BHDDH), the department of human services (DHS), the department of |
health (DOH), and Medicaid for the purposes of: |
(A) Establishing a baseline of the eligibility factors for receiving services; |
(B) Establishing a baseline of the service offering through each agency for those |
determined eligible; |
(C) Establishing a baseline understanding of reimbursement rates for all social and human |
service programs including rates currently being paid, the date of the last increase, and a proposed |
model that the state may use to conduct future studies and analyses; |
(D) Ensuring accurate and adequate reimbursement to social and human service providers |
that facilitate the availability of high-quality services to individuals receiving home and |
community-based long-term services and supports provided by social and human service providers; |
(E) Ensuring the general assembly is provided accurate financial projections on social and |
human service program costs, demand for services, and workforce needs to ensure access to entitled |
beneficiaries and services; |
(F) Establishing a baseline and determining the relationship between state government and |
the provider network including functions, responsibilities, and duties; |
(G) Determining a set of measures and accountability standards to be used by EOHHS and |
the general assembly to measure the outcomes of the provision of services including budgetary |
reporting requirements, transparency portals, and other methods; and |
(H) Reporting the findings of human services analyses and reports to the speaker of the |
house, senate president, chairs of the house and senate finance committees, chairs of the house and |
senate health and human services committees, and the governor. |
(2) The analyses, reports, and studies required pursuant to this section shall be |
accomplished and published as follows and shall provide: |
(i) An assessment and detailed reporting on all social and human service program rates to |
be completed by January 1, 2023, including rates currently being paid and the date of the last |
increase; |
(ii) An assessment and detailed reporting on eligibility standards and processes of all |
mandatory and discretionary social and human service programs to be completed by January 1, |
2023; |
(iii) An assessment and detailed reporting on utilization trends from the period of January |
1, 2017, through December 31, 2021, for social and human service programs to be completed by |
January 1, 2023; |
(iv) An assessment and detailed reporting on the structure of the state government as it |
relates to the provision of services by social and human service providers including eligibility and |
functions of the provider network to be completed by January 1, 2023; |
(v) An assessment and detailed reporting on accountability standards for services for social |
and human service programs to be completed by January 1, 2023; |
(vi) An assessment and detailed reporting by April 1, 2023, on all professional licensed |
and unlicensed personnel requirements for established rates for social and human service programs |
pursuant to a contract or established fee schedule; |
(vii) An assessment and reporting on access to social and human service programs, to |
include any wait lists and length of time on wait lists, in each service category by April 1, 2023; |
(viii) An assessment and reporting of national and regional Medicaid rates in comparison |
to Rhode Island social and human service provider rates by April 1, 2023; |
(ix) An assessment and reporting on usual and customary rates paid by private insurers and |
private pay for similar social and human service providers, both nationally and regionally, by April |
1, 2023; and |
(x) Completion of the development of an assessment and review process that includes the |
following components: eligibility; scope of services; relationship of social and human service |
provider and the state; national and regional rate comparisons and accountability standards that |
result in recommended rate adjustments; and this process shall be completed by September 1, 2023, |
and conducted biennially hereafter. The biennial rate setting shall be consistent with payment |
requirements established in § 1902(a)(30)(A) of the Social Security Act, 42 U.S.C. § |
1396a(a)(30)(A), and all federal and state law, regulations, and quality and safety standards. The |
results and findings of this process shall be transparent, and public meetings shall be conducted to |
allow providers, recipients, and other interested parties an opportunity to ask questions and provide |
comment beginning in September 2023 and biennially thereafter; and |
(xi) On or before September 1, 2026, the office shall publish and submit to the general |
assembly and the governor a one-time report making and justifying recommendations for |
adjustments to primary care services reimbursement and financing. The report shall include |
consideration of Medicaid, Medicare, commercial, and alternative contracted payments. |
(3) In fulfillment of the responsibilities defined in subsection (t), the office of the health |
insurance commissioner shall consult with the Executive Office of Health and Human Services. |
(u) Annually, each department (namely, EOHHS, DCYF, DOH, DHS, and BHDDH) shall |
include the corresponding components of the assessment and review (i.e., eligibility; scope of |
services; relationship of social and human service provider and the state; and national and regional |
rate comparisons and accountability standards including any changes or substantive issues between |
biennial reviews) including the recommended rates from the most recent assessment and review |
with their annual budget submission to the office of management and budget and provide a detailed |
explanation and impact statement if any rate variances exist between submitted recommended |
budget and the corresponding recommended rate from the most recent assessment and review |
process starting October 1, 2023, and biennially thereafter. |
(v) The general assembly shall appropriate adequate funding as it deems necessary to |
undertake the analyses, reports, and studies contained in this section relating to the powers and |
duties of the office of the health insurance commissioner. |
SECTION 10. Rhode Island Medicaid Reform Act of 2008 Resolution. |
WHEREAS, The General Assembly enacted Chapter 12.4 of Title 42 entitled “The Rhode |
Island Medicaid Reform Act of 2008”; and |
WHEREAS, A legislative enactment is required pursuant to Rhode Island General Laws |
section 42-12.4-1, et seq.; and |
WHEREAS, Rhode Island General Laws section 42-7.2-5(3)(i) provides that the secretary |
of the executive office of health and human Services is responsible for the review and coordination |
of any Medicaid section 1115 demonstration waiver requests and renewals as well as any initiatives |
and proposals requiring amendments to the Medicaid state plan or category II or III changes as |
described in the demonstration, “with potential to affect the scope, amount, or duration of publicly- |
funded health care services, provider payments or reimbursements, or access to or the availability |
of benefits and services provided by Rhode Island general and public laws”; and |
WHEREAS, In pursuit of a more cost-effective consumer choice system of care that is |
fiscally sound and sustainable, the secretary requests legislative approval of the following proposals |
to amend the demonstration; and |
WHEREAS, Implementation of adjustments may require amendments to the Rhode |
Island’s Medicaid state plan and/or section 1115 waiver under the terms and conditions of the |
demonstration. Further, adoption of new or amended rules, regulations and procedures may also be |
required: |
(a) Nursing Facility Rate Increase Alignment with State Revenue Growth. The executive |
office of health and human services will pursue and implement any state plan amendments needed |
to limit rate increases for nursing facilities in SFY 2026 to the anticipated rate of growth of state |
tax revenue, estimated to be 2.3 percent. |
(b) Home Care Rates. The secretary of the executive office of health and human services |
will pursue and implement any state plan amendments needed to eliminate annual rate increases |
for home care services. |
(c) Establishment of interprofessional consultation program. The secretary of the executive |
office of health and human services will pursue and implement any state plan amendments needed |
to establish an interprofessional consultation program in Medicaid effective October 1, 2025. |
(d) Long-term Behavioral Healthcare Beds. The secretary of the executive office of health |
and human services will pursue and implement any state plan amendments needed to establish a |
rate methodology in support of long-term care behavioral health inpatient units for non- |
governmental owned hospitals. |
(e) Mobile Response and Stabilization Services (MRSS). The secretary of the executive |
office of health and human services will pursue and implement any state plan amendments needed |
to establish a rate of methodology for twenty-four-hour mobile response and stabilization services |
for children and youth ages two through twenty-one. This program shall convert the existing pilot |
Mobile Response and Stabilization Services program into a Medicaid-covered benefit to establish |
MRSS as the state-sanctioned crisis system for children's behavioral health that adheres to |
nationally recognized fidelity standard. The request for a state plan amendment shall be submitted |
no later than October 1, 2025, for a start date no later than October 1, 2026. |
(f) 340 B Program. The secretary of the executive office of health and human services will |
pursue and implement any state plan or 1115 waiver amendments needed to effectuate a 340 B |
program is authorized to pursue and implement any state plan or 1115 waiver amendments that |
may be needed, and to make any changes to the department's rules, regulations, and procedures that |
may be needed, to prohibit discrimination against 340B covered entities for drugs reimbursed by |
the Medicaid program. |
The following terms have the following meanings: |
(1) "340B drug" means a drug that has been subject to any offer for reduced prices by a |
manufacturer pursuant to 42 U.S.C. § 256b and is purchased by a covered entity as defined in 42 |
U.S.C. § 256b(a)(4); |
(2) “340B-contract pharmacy” means a pharmacy, as defined in § 5-19.1-2, that dispenses |
340B drugs on behalf of a 340B-covered entity; |
(3) "340B covered entity" means an entity participating or authorized to participate in the |
federal 340B drug discount program on behalf of a 340B-covered entity under contract; |
(4) "Medicaid" means the Rhode Island Medicaid program; |
(5) "Pharmaceutical manufacturer" means any person or entity that manufactures, |
distributes, or sells prescription drugs, directly or through another person or entity, in this state; |
(6) "Pharmacy benefit manager” or “PBMs" means an entity doing business in the state |
that contracts to administer or manage prescription-drug benefits on behalf of Medicaid that |
provides prescription-drug benefits to Medicaid members; |
The executive office will prohibit certain discriminatory actions by Medicaid, including |
managed care organizations or PMBs contracted with Medicaid, related to reimbursement of 340B |
covered entities and 340B contract pharmacies as follows: |
(a) With respect to reimbursement to a 340B covered entity for 340B drugs, a health |
insurer, pharmacy benefit manager, manufacturer, other third-party payor, or its agent Medicaid, a |
managed care organization contracted with Medicaid, a PBM contracted with Medicaid, a Medicaid |
managed care organization or an agent of any of the above shall not do any of the following: |
(1) Reimburse Establish a lower reimbursement rate for a 340B covered entity or contract |
pharmacy for 340B drugs at a rate lower than that paid the established reimbursement rate for the |
same drug or service to for a non- 340B pharmacy; based solely on the pharmacy's or the drug's |
340B status. |
(2) Impose fees, chargebacks, adjustments, or conditions on reimbursement to 340B |
covered entity, that differs from such terms or conditions applied to a non-340B entity, based on |
340B status and participation in the federal 340B drug discount program set forth in 42 U.S.C. § |
256b including, without limitation, any of the following: |
(3) Deny or limit participation in standard or preferred pharmacy networks based on 340B |
status; |
(4) Impose requirements relating to the frequency or scope of audits of inventory |
management systems inconsistent with the federal 340B drug pricing program; |
(5) Require submission of claims-level data or documentation that identifies 340B drugs |
as a condition of reimbursement or pricing, unless it is required by the Centers for Medicare and |
Medicaid Services; |
(6) Require a 340B covered entity to reverse, resubmit, or clarify a claim after the initial |
adjudication unless these actions are in the normal course of pharmacy business and not related to |
340B drug pricing; |
(7)(4) Interfere with, or limit, a 340B covered entity’s choice to use a contract pharmacy |
for drug distribution or dispensing; |
(8) Include any other provision in a contract between a health insurer, pharmacy benefit |
manager, manufacturer, or other third-party payor and a 340B covered entity that differ from the |
terms and conditions applied to entities that are not 340B covered entities, that discriminates against |
the 340B covered entity or prevents or interferes with an individual's choice to receive a |
prescription drug from a 340B covered entity, including the administration of such drugs in person |
or via direct delivery, mail, or other form of shipment, or create a restriction or additional charge |
on a patient who chooses to receive drugs from a 340B covered entity; |
(9)(5) Place a restriction or additional charge on a patient who chooses to receive 340B |
drugs from a 340B covered entity if such restriction or additional charge differs from the terms and |
conditions applied where patients choose to receive drugs that are not 340B drugs from an entity |
that is not a 340B covered entity or from a pharmacy that is not a 340B contract pharmacy; |
(10)(6) Exclude any 340B covered entity from a health insurer, pharmacy benefit manager, |
or other third-party payor network or refuse to contract with a 340B covered entity for reasons other |
than those that apply equally to a non-340B entity; |
(11)(7) Impose any other restrictions, requirements, practices, or policies that are not |
imposed on a non- 340B entity; |
(b) Nothing in this section is intended to limit Medicaid fee-for-service or managed care |
program's or pharmacy benefit manager’s ability to use preferred pharmacies or develop preferred |
networks so long as participation is not based on an entity’s status as a 340B covered entity and |
participation in the network is subject to the same terms and conditions as a non-340B covered |
entity; |
(c) Annually on or before April 1, each 340B covered entity participating in the federal |
340B drug pricing program established by 42 U.S.C. §256b shall submit to the office of the |
Governor, the Speaker of the House of Representatives, the President of the Senate, and Auditor |
General a report detailing the 340B covered entity’s participation in the program during the |
previous calendar year, which report shall be posted on the state Auditor General’s website and |
which shall contain at least the following information: |
(1) the aggregated acquisition cost for all prescription drugs that the 340B covered entity |
obtained through the 340B program during the previous calendar year; |
(2) the aggregated payment amount that the 340B covered entity received for drugs, under |
the 340B program and dispensed or administered to patients enrolled in commercial and Medicare |
Supplemental plans; |
(3) the aggregated payment amount that the 340B covered entity made: |
(i) to contract pharmacies to dispense drugs to its patients under the 340B program during |
the previous calendar year; |
(ii) to any other outside vendor for managing, administering, or facilitating any aspect of |
the 340B covered entity’s drug program during the previous calendar year; and |
(iii) for all other expenses related to administering the 340B program, including staffing, |
operational, and administrative expenses, during the previous calendar year; |
(4) The names of all vendors, including split billing vendors, and contract pharmacies, with |
which the 340B covered entity contracted to provide services associated with the covered entity’s |
340B program participation during the previous calendar year; |
(5) The number of claims for all prescription drugs the 340B covered entity obtained |
through the 340B program during the previous calendar year, including the total number of claims |
and the number of claims reported by commercial and Medicare Supplemental plans; and be it |
further. |
(g) Primary Care Rates. The secretary of the executive office of health and human services |
is authorized to pursue and implement any waiver amendments, state plan amendments, and/or |
changes to the department’s rules, regulations, and procedures to set Medicaid reimbursement rates |
for primary care services, as defined by the executive office, equal to one hundred percent (100%) |
of the Medicare reimbursement rates for primary care services in effect as of October 1, 2025. The |
reimbursement rates will be annually updated to reflect one hundred percent (100%) of the |
Medicare reimbursement rates for primary care. |
(h) Medicare Savings Programs. The secretary of the executive office of health and human |
services is authorized to pursue and implement any waiver amendments, state plan amendments, |
and/or changes to the applicable department's rules, regulations, and procedures required to |
implement income disregards for the Qualified Medicare Savings Program to increase eligibility |
up to one hundred and twenty-five percent (125%) of federal poverty and the Qualified Individual |
Medicare Savings Program up to one hundred and sixty-eight percent (168%) of federal poverty |
effective January 1, 2026. Premium payments for the Qualified Individuals will be one hundred |
percent (100%) federally funded up to the amount of the federal allotment and the Secretary shall |
discontinue enrollment in the Qualified Individual program when the Part B premiums meet the |
federal allotment. |
(i) Prior Authorization Pilot Program. The secretary of the executive office of health and |
human services will pursue and implement any state plan or 1115 waiver amendments needed to |
effectuate a prior authorization pilot program. The executive office of health and human services |
will conduct a three-year pilot within Medicaid fee-for-service and managed care program, that |
eliminates prior authorization requirements for any service, treatment, or procedure ordered by a |
primary care provider in the normal course of providing primary care treatment, which shall take |
effect on October 1, 2025, and sunset on October 1, 2028. |
For purposes of the pilot program, a primary care provider means a provider within the |
practice type of family medicine, geriatric medicine, internal medicine, obstetrics and gynecology, |
or pediatrics with the following professional credentials: a doctor of medicine or doctor of |
osteopathic medicine, a nurse practitioner, or a physician assistant, and who is credentialed with |
Medicaid fee-for-service or managed care organization. Prior authorization means the pre-service |
assessment for purposes of utilization review that a Primary Care Provider is required by Medicaid |
fee-for-service or managed care organization to undergo before a covered healthcare service is |
approved for a patient. |
The executive office of health and human services will provide an annual report to the |
Speaker of the House, the Senate President, the Office of the Governor and the Office of the Health |
Insurance Commissioner that includes recommendations on the further simplification and reduction |
of administrative burdens related to the utilization of prior authorizations in primary care and data |
and analytics demonstrating the impact the pilot program is having on utilization and patient, cost, |
quality, and access to care. |
RESOLVED, That EOHHS will conduct a three (3) year pilot within Medicaid fee-for- |
service and managed care program, that eliminates Prior Authorization requirements for any |
service, treatment, or procedure ordered by a Primary Care Provider in the normal course of |
providing primary care treatment, which however, this provision shall not apply to any |
pharmaceutical drugs and/or pharmaceutical products, and shall take effect on October I, 2025, and |
sunset on October 1, 2028; and be it further |
RESOLVED, That for purposes of this pilot a "Primary Care Provider" means a provider |
within the practice type of family medicine, geriatric medicine, internal medicine, obstetrics and |
gynecology, or pediatrics with the following professional credentials: a doctor of medicine or |
doctor of osteopathic medicine, a nurse practitioner, or a physician assistant, and who is |
credentialed with Medicaid fee-for-service or managed care organization; and be it further |
RESOLVED, That for purposes of this pilot "Prior Authorization" means the pre-service |
assessment for purposes of utilization review that a Primary Care Provider is required by Medicaid |
fee-for-service or managed care organization to undergo before a covered healthcare service is |
approved for a patient; and be it further |
RESOLVED, That EOHHS will provide an annual report to the Speaker of the House, the |
Senate President, the Office of the Governor and the Office of the Health Insurance Commissioner |
that includes recommendations on the further simplification and reduction of administrative |
burdens related to the utilization of prior authorizations in primary care and data and analytics |
demonstrating the impact the pilot program is having on utilization and patient care, cost, quality |
and access to care; and be it further |
RESOLVED, That the General Assembly hereby approves the above-referenced Medicaid |
pilot proposals; and be it further |
RESOLVED, That the Secretary of the EOHHS is hereby ordered and directed to pursue |
and implement any state plan or 1115 waiver amendments needed to effectuate this pilot program. |
Now, therefore, be it: |
RESOLVED, That the General Assembly hereby approves the above-referenced proposals; |
and be it further; |
RESOLVED, That the secretary of the executive office of health and human services is |
authorized to pursue and implement any waiver amendments, state plan amendments, and/or |
changes to the applicable department’s rules, regulations and procedures approved herein and as |
authorized by Rhode Island General Laws section 42-12.4; and be it further; |
RESOLVED, That this Joint Resolution shall take effect on July 1, 2025. |
SECTION 11. This article shall take effect upon passage, except Section 10 which shall |
take effect as of July 1, 2025. |