UT SB0305

Amends Medicaid accountable care organization rate structure to allow quality incentive arrangements under federal regulation 42 C.F.R. Sec. 438.6(b)(2), provided Medicaid ACOs distribute at least 90% of those funds to hospitals

Authorizes up to $200,000 annually from the Hospital Provider Assessment Expendable Revenue Fund to monitor Medicaid ACOs' distribution of quality incentive funds to hospitals

Maintains existing $154,000,000 allocation for hospital inpatient directed payments for Medicaid eligibility categories covered before January 1, 2019

Requires the division to apply the same quality measures and penalties to directed payments made to University of Utah Hospital and Clinics

Takes effect May 6, 2026, with certain provisions set to be repealed July 1, 2028