HI HB1620

Require the Department of Health, in conjunction with the Department of Human Services and Insurance Commissioner, to conduct a feasibility study on an all-payer global budgeting pilot program for hospital care.

Study shall examine a program where all health insurers contribute funds to a state-administered pool based on their covered populations' hospital needs, with funds used to pay hospitals with global operating budgets and separate capital improvement budgets allocated by community need.

Study must consider four goals: stabilizing funding for rural and critical access hospitals, eliminating approximately 15% of hospital budgets spent on billing and collection administrative expenses, preventing billing fraud and abuse, and eliminating cost shifting between payers and chargemaster rate variations.

Study shall also evaluate impacts on private insurance, Medicare, and Medicaid coverage; identify potential legal challenges; and assess the appropriateness of obtaining a Medicaid Section 1115 waiver for the program.

Department of Health shall submit findings, recommendations, and any proposed legislation to the legislature no later than 20 days before the 2023 regular session convenes; Act takes effect July 1, 2022.