Senate Bill No. 457

(By Senators Walker, Tomblin, Mr. President, Wooton, Fanning, Hunter, Macnaughtan, Craigo, Oliverio, Sharpe, Dittmar, Bailey, Bowman, Snyder, Kessler, Prezioso, Buckalew, Jackson, White, Plymale, Anderson, McKenzie, Sprouse, Chafin, Ball, Ross, Schoonover, Scott, Love, Helmick, Minear and Boley)

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[Introduced February 10, 1998; referred to
the Committee on Health and Human Resources;

and then to the Committee on Finance.]

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A BILL to amend and reenact section two-b, article four-a, chapter nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended; and to further amend said article by adding thereto a new section, designated section three, all relating to the state's medicaid program; providing for health insurance coverage of children under the age of six if their family income is below one hundred fifty percent of the federal poverty level; and creating the West Virginia children's health care fund.

Be it enacted by the Legislature of West Virginia:
That section two-b, article four-a, chapter nine of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that said article be further amended by adding thereto a new section, designated section three, all to read as follows:
ARTICLE 4A. MEDICAID UNCOMPENSATED CARE FUND.
§9-4A-2b. Expansion of coverage to children and terminally ill.
(a) It is the intent of the Legislature that steps be taken to expand coverage to children and the terminally ill and to pay for this coverage by fully utilizing federal funds. To achieve this intention, the department of health and human resources shall undertake the following:
(1) Effective the first day of July, one thousand nine hundred ninety-four ninety-eight, the department shall initiate a streamlined application form, which shall be no longer than two pages, for all families applying only for medicaid medical coverage for children under any of the programs set forth in this section.
(2) Effective the first day of July, one thousand nine hundred ninety-four, the department shall initiate the option of hospice care to terminally ill West Virginians who otherwise qualify for medicaid. On or before the first day of January, one thousand nine hundred ninety-five, and periodically thereafter, The department shall report provide quarterly reports to the legislative task force on uncompensated health care and medicaid expenditures oversight commission on health and human resources accountability created pursuant to section four, article twenty-nine-c twenty-nine-e, chapter sixteen of this code regarding the program initiation provided for in this subdivision. The report shall include, but not be limited to, the total number, by age, of newly eligible clients served, as a result of the initiation of the program pursuant to this subdivision the average annual cost of coverage per client, and the total cost, by provider type, to serve all clients.
(3) Effective the first day of July, one thousand nine hundred ninety-four, the department shall accelerate the medicaid option for coverage of medicaid to all West Virginia children whose family income is below one hundred percent of the federal poverty level. On or before the first day of January, one thousand nine hundred ninety-five, and periodically thereafter, The department shall report provide quarterly reports to the legislative task force on uncompensated health care and medicaid expenditures oversight commission on health and human resources accountability regarding the program acceleration provided for in this subdivision. The report shall include, but not be limited to, the number of newly eligible clients, by age, served as a result of the acceleration, the average annual cost of coverage per client and the total cost of all clients served by provider type. The report shall also include the medical services trust fund balance and the future disproportionate share moneys expected to be deposited in the medical services trust fund pursuant to section two-a of this article.
(4)Effective the first day of July, one thousand nine hundred ninety-five ninety-eight, the department may initiate the medicaid option to shall expand the current medicaid coverage of children below the age of six years whose family income is below one hundred thirty-three percent of the federal poverty level to include those West Virginia children below the age of six years whose family income is between one hundred thirty-three percent of the federal poverty level and one hundred fifty-percent of the federal poverty level. This program shall be administered in accordance with the applicable provisions of Titles XIX and XXI of the Social Security Act. To prepare for program expansion the department shall submit a report to the governor and the Legislature on the first day of January, one thousand nine hundred ninety-five, regarding the feasibility of the expansion. The report is to include, but not be limited to, the number of newly eligible clients participating in the programs specified in this section, the average annual cost of coverage per client, the percentage of expected participation for the expansion, the projected cost of the expansion, the medical services trust fund balance and the future disproportionate share moneys expected to be deposited in the medical services trust fund pursuant to section two-a of this article. The department shall continually update the additional information required to be provided to the governor and the Legislature regarding this expansion and periodically report the information to the legislative task force on uncompensated health care and medicaid expenditures created pursuant to section four, article twenty-nine-c, chapter sixteen of this code.
(5) Effective the first day of July, one thousand nine hundred ninety-six, the department may initiate the medicaid option to expand coverage of medicaid to all West Virginia children whose family income is below one hundred fifty percent of the federal poverty level. To prepare for program expansion, the department shall submit a report to the governor and the Legislature on the first day of January, one thousand nine hundred ninety-six, regarding the feasibility of the expansion. Additionally, the report is to include, but not be limited to, the number of clients who would be newly eligible to participate in the program, the average annual cost of coverage per client, by age, the percentage of expected participation for the expansion and the projected cost of the expansion, the balance of the medical services trust fund and the future disproportionate share moneys expected to be deposited in the medical services trust fund pursuant to section two-a of this article. The department shall periodically update and report to the legislative task force on uncompensated health care and medicaid expenditures created pursuant to section four, article twenty- nine-c, chapter sixteen of this code regarding the additional information required to be submitted to the governor and the Legislature.
(b) Notwithstanding the provisions of section two-a of this article, the accruing interest in the medical services trust fund may be utilized to pay for the programs specified in subdivisions (2) and (3), subsection (a) of this section: Provided, That to the extent the accrued interest is not sufficient to fully fund the specified programs, the disproportionate share hospital funds paid into the medical services trust fund after the thirtieth day of June, one thousand nine hundred ninety-four, may be applied to cover the cost of the specified programs. Provided, however, That in fiscal year one thousand nine hundred ninety-five, the amount of funds applied from the disproportionate share funds, not including accrued interest, shall not exceed ten million dollars: Provided further, That in the interest of fiscal responsibility, the department shall terminate the program specified in subdivisions (4) and (5) of subsection (a) of this section, if the future moneys deposited from disproportionate share payments in the medical services trust fund are insufficient to cover the cost of the expanded program.
(c) On the first day of January, one thousand nine hundred ninety-five and annually thereafter, the department shall report to the governor and to the Legislature information regarding the number of children and elderly covered by the program programs in subdivisions (2) and (3), subsection (a), of this section, the cost of services by type of service provided, a cost-benefit analysis of the acceleration and expansion on other insurers and the reduction of uncompensated care in hospitals as a result of the programs.
(d) On the first day of January, one thousand nine hundred ninety-nine and annually thereafter, the department shall report to the governor and to the Legislature information regarding the number of children enrolled in the Title XIX medicaid program as a result of implementation of the provisions of subdivision (4), subsection (a) of this section; the number of children enrolled in the new Title XXI medicaid program; the estimated number of children eligible for enrollment in either program; the cost of services by type of service provided in both programs; an analysis of the impact of the programs on other insurers; and the reduction of uncompensated care in hospitals as a result of the programs. The annual report filed by the department shall also include information relating to any proposed expansion of the population to be served under the state's medicaid program, other than the expansions specifically authorized in this section, and any expansion in the population to be served may not be implemented until sixty days following the filing of the report required in this subsection. The department shall make quarterly reports to the legislative oversight commission on health and human resources accountability, established pursuant to section four, article twenty-nine-e, chapter sixteen of this code regarding the development, implementation and monitoring of the program.
(d) (e)The health care cost review authority established by section five, article twenty-nine-b of this chapter shall consider in its rate review that uncompensated care and charity care are reduced by the programs specified in subsection (a) of this section and shall take the reduction into account when determining rates. This determination shall be undertaken in each hospital's next rate review and shall be determined prospectively.
(e) (f) On the first day of January, one thousand nine hundred ninety-five ninety-nine, and annually thereafter, the health care cost review authority shall present to the governor and to the Legislature a report concerning the reduction in cost shift created by the operation of the provisions of this article.
(f) The department shall review the additional utilization by behavioral health centers as a result of the acceleration and expansion for a period of eighteen months from the enactment of this article: Provided, That during the eighteen month study period the department shall not issue additional behavioral health licenses: Provided, however, That this license provision does not apply to facilities filing for renewal applications or to any health care facility which has a certificate of need in effect or an application pending on the first day of March, one thousand nine hundred ninety-four: Provided further, That this licensure prohibition shall not apply to behavior health services provided pursuant to any agreement between state owned psychiatric hospitals which are approved by the federal health care finance administration.
§9-4A-3. The West Virginia children's health fund.
(a) There is hereby created in the state treasury a special revolving fund to be known as the "West Virginia children's health fund," which shall be an interest-bearing account established and maintained to purchase health services for low- income children.
(b) Funds paid into this account shall be derived from the following sources:
(1) Any appropriations by the Legislature;
(2) All public funds transferred by any public agency as permitted by applicable federal and state law;
(3) Any private funds contributed, donated or bequeathed by corporations, individuals or other entities as permitted by applicable federal and state law; and
(4) All interest or return on investments accruing to the fund.
(b) Moneys from this fund shall be used exclusively for the following purposes:
(1) To purchase health care services for the program defined in subdivision (4), subsection (a), section two-b of this article, and to pay for associated administrative costs; outreach activities and presumptive eligibility costs; and
(2) To provide the state's share of the enhanced federal medical assistance percentage funds.
(c) Notwithstanding the provisions of section two, article two, chapter twelve of this code, funds of the West Virginia children's health fund may not be redesignated for any purpose other than those set forth in this subsection.

NOTE: The purpose of this bill is to provide health insurance for children under the age of six if their family income is below one hundred fifty percent of the federal poverty level; and creating the West Virginia Children's Health Care Fund.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§9-4A-3 is new; therefore, strike-throughs and underscoring have been omitted.