SENATE CONCURRENT RESOLUTION NO. 75

(By Senators Stollings, Foster, Jenkins, Tucker, Laird, Miller and Prezioso)

[Originating in the Committee on Health and Human Resources]

Requesting the Joint Committee on Government and Finance study the rate review process established by the West Virginia Health Care Authority.

    Whereas, The rate review process was enacted by the West Virginia Legislature in 1983 and became a function of the Health Care Authority at that time; and

    Whereas, Unless specifically exempted, all acute care hospitals in West Virginia must obtain approval from the Health Care Authority to amend their rates; and

Whereas, Rate controls were a tool to constrain health costs

prior to implementation of prospective payment systems; and
Whereas, The rate review process was intended to be a

regulatory tool under a federal waiver which was never approved; and

    Whereas, Rate controls impede development of integrated health models to manage patient outcomes and control costs; and

    Whereas, The Patient Protection and Affordable Care Act (PPACA) was signed into United States law in March 2010, and thereby amending all health care financing and insurance market assumptions underlying the rate review statute; and

Whereas, Rate review does not exist in many states; and
Whereas, Restructuring the rate review process may be

appropriate; therefore, be it
Resolved by the Legislature of West Virginia:
That the Joint Committee on Government and Finance is hereby

requested to study the rate review process established by the West Virginia Health Care Authority; and, be it

     Further resolved, That the Joint Committee on Government and Finance consult with the Health Care Authority, representatives in health care financing, payers, the West Virginia Hospital Association and other interested parties who may offer insight into the rate review process; and, be it
    Further resolved, That the Joint Committee on Government and Finance report to the regular session of the Legislature, 2012, on its findings, conclusions and recommendations, together with drafts of any legislation necessary to effectuate its recommendations; and, be it
    Further resolved, That the expenses necessary to conduct this study, to prepare a report and to draft necessary legislation be paid from legislative appropriations to the Joint Committee on Government and Finance.