SENATE CONCURRENT RESOLUTION NO. 81
(By Senators McCabe, Kessler, Foster, Stollings, Hall,
Barnes, Love, Jenkins and Boley)
Requesting the committees on Finance of both houses of the
Legislature jointly conduct a detailed study of the
reimbursement rate structures and rate adjustment processes
for private providers paid by the Department of Health and
Human Resources.
Whereas, The Department of Health and Human Resources relies
upon and contracts with private providers to provide many mandated
services to the citizens of the State of West Virginia; and
Whereas, The Department of Health and Human Resources has
total and absolute control and authority to establish the rates it
pays to private providers for the provision of these services; and
Whereas, There is widespread inconsistency in how the
Department of Health and Human Resources establishes rates for
various types of providers in various programs. Some providers,
such as hospitals and nursing homes, have their reimbursement rates
reviewed and adjusted annually. Providers in other programs have
gone as long as fourteen years without having a reimbursement rate
adjustment; and
Whereas, The cost of doing business for providers increases from year to year based upon the consumer price index (for January
2008 the rate was 4.28 percent) and the United States Department of
Labor employee cost index; and
Whereas, Stagnate reimbursement rates make it difficult for
private providers to compete for and retain high quality staff; and
Whereas, Adequate reimbursement rates are required in order to
insure that private providers are able to provide quality care and
services to the citizens of this state; and
Whereas, The provision of high quality and effective community
based services prevents the increased utilization of more costly
institutionally based services, thereby resulting in an overall
savings to the state; and
Whereas, It is in the public interest for the Legislature to
explore alternative structures and processes for reviewing and
adjusting reimbursement rates paid by the Department of Health and
Human Resources to private providers; therefore, be it
Resolved by the Legislature of West Virginia:
That the Legislature hereby requests the committees on Finance
of both houses of the Legislature jointly conduct a detailed study
of the reimbursement rate structures and rate adjustment processes
for private providers paid by the Department of Health and Human
Resources; and, be it
Further Resolved, That the study shall examine all rates paid
to all types of providers including, but not limited to, residential care providers, foster parents, developmental
disability service providers and comprehensive community mental
health centers. The study will also examine the feasibility of
establishing an annual rate review process within the Department of
Health and Human Resources which may include a mechanism for
implementing annual cost of living increases; and, be it
Further Resolved, That the committees on Finance jointly
report back to the Legislature no later than the first day of
January, 2009, with a report and recommendations concerning their
findings so that the Legislature may promptly act upon the
commencement of the 2009 regular session of the West Virginia
Legislature should the Legislature determine that it is appropriate
to do so in light of the report and recommendations of the
Committees on Finance.