HB1821 Summary

• Requires the Department of Human Services to implement an 8.8% increase to Medicaid reimbursement rates for early intervention day treatment, adult development day treatment, personal care, attendant care, respite care, and substance abuse treatment services effective July 1, 2019, to address minimum wage increases approved by voters in November 2018.

• Establishes a mandatory schedule for regular review of Medicaid reimbursement rates and methodologies, requiring review of each healthcare provider type at least once every three years, with approximately one-third of the fee-for-service Medicaid budget reviewed annually.

• Requires the Department of Human Services to hire an independent consulting firm to evaluate rates and consider 13 specific factors including provider solvency, wage levels, workforce quality, capital infrastructure needs, quality care incentives, and comparison to Medicare and other payors.

• Mandates annual reports by October 31 with rate change recommendations submitted to the Legislative Council's Administrative Rules Subcommittee, which must approve recommendations unless a majority votes to disapprove.

• Declares an emergency due to minimum wage increases threatening Medicaid providers' ability to continue operations, making the act effective immediately upon Governor approval or expiration of veto period.