SENATE BILL No. 738

 

 

September 25, 2003, Introduced by Senators JELINEK and HARDIMAN and referred to the Committee on Families and Human Services.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1939 PA 280, entitled                                             

                                                                                

    "The social welfare act,"                                                   

                                                                                

    by amending sections 108 and 109 (MCL 400.108 and 400.109),                 

                                                                                

    section 109 as amended by 2002 PA 673.                                      

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 108.  (1) A medically indigent person as defined  under                

                                                                                

2   subdivision (1) of  in section  106,  106(1)(a) is entitled to              

                                                                                

3   all the services enumerated in  subsections (a), (b), (c), (d),             

                                                                                

4   (e) and (f) of section 109  section 109(a), (b), (c), (d), (e),             

                                                                                

5   (f), and (g).  A medically indigent person as defined  under                

                                                                                

6   subdivision (2) of  in section  106  106(1)(b) is entitled to               

                                                                                

7   medical services enumerated in  subsections (a), (c) and (e) of             

                                                                                

8   section  109  109(a), (c), and (e).  He  shall  or she is also              

                                                                                

9   be  entitled to the services enumerated in  subsections (b), (d)           

                                                                                

10  and (f) of  section  109  109(b), (d), and (f) to the extent  of            

                                                                                


                                                                                

1   appropriations are made available by the legislature for those              

                                                                                

2   services during the fiscal year.                                            

                                                                                

3       (2) Medical services shall be rendered upon certification by                

                                                                                

4   the attending licensed physician and dental services shall be               

                                                                                

5   rendered upon certification of the attending licensed dentist               

                                                                                

6   that a service is required for the treatment of an individual.              

                                                                                

7   The services of a medical institution shall be rendered only                

                                                                                

8   after referral by a licensed physician or dentist and                       

                                                                                

9   certification by  him  that physician or dentist that the                   

                                                                                

10  services of the medical institution are required for the medical            

                                                                                

11  or dental treatment of the individual, except that referral is              

                                                                                

12  not necessary in case of an emergency.                                      

                                                                                

13      (3) Periodic recertification that medical treatment  which                  

                                                                                

14  that extends over a period of time is required in accordance with           

                                                                                

15  regulations of the  state  department  shall be  is a condition             

                                                                                

16  of continuing eligibility to receive medical assistance.                    

                                                                                

17      (4) To comply with federal  statutes  law governing                         

                                                                                

18  medicaid, the  state  department shall provide  such  early and             

                                                                                

19  periodic screening  ,  and diagnostic and treatment services to             

                                                                                

20  eligible children  as it deems  that the department considers               

                                                                                

21  necessary.                                                                  

                                                                                

22      Sec. 109.  (1) The following medical services may be                        

                                                                                

23  provided under this act:                                                    

                                                                                

24      (a) Hospital services that an eligible individual may receive               

                                                                                

25  consist of medical, surgical, or obstetrical care, together with            

                                                                                

26  necessary drugs, X-rays, physical therapy, prosthesis,                      

                                                                                

27  transportation, and nursing care incident to the medical,                   


                                                                                

1   surgical, or obstetrical care.  The period of inpatient hospital            

                                                                                

2   service shall be the minimum period necessary in this type of               

                                                                                

3   facility for the proper care and treatment of the individual.               

                                                                                

4   Necessary hospitalization to provide dental care shall be                   

                                                                                

5   provided if certified by the attending dentist with the approval            

                                                                                

6   of the department of community health.  An individual who is                

                                                                                

7   receiving medical treatment as an inpatient because of a                    

                                                                                

8   diagnosis of tuberculosis or mental disease may receive service             

                                                                                

9   under this section, notwithstanding the mental health code, 1974            

                                                                                

10  PA 258, MCL 330.1001 to 330.2106, and 1925 PA 177, MCL 332.151 to           

                                                                                

11  332.164.  The department of community health shall pay for                  

                                                                                

12  hospital services  in accordance with  according to the state               

                                                                                

13  plan for medical assistance adopted  pursuant  according to                 

                                                                                

14  section 10 and approved by the United States department of health           

                                                                                

15  and human services.                                                         

                                                                                

16      (b) An eligible individual may receive physician services                   

                                                                                

17  authorized by the department of community health.  The service              

                                                                                

18  may be furnished in the physician's office, the eligible                    

                                                                                

19  individual's home, a medical institution, or elsewhere in case of           

                                                                                

20  emergency.  A physician shall be paid a reasonable charge for the           

                                                                                

21  service rendered.  Reasonable charges shall be determined by the            

                                                                                

22  department of community health and shall not be more than those             

                                                                                

23  paid in this state for services rendered under title XVIII.                 

                                                                                

24      (c) An eligible individual may receive nursing home services                

                                                                                

25  in a state licensed nursing home, a medical care facility, or               

                                                                                

26  other facility or identifiable unit of that facility, certified             

                                                                                

27  by the appropriate authority as meeting established standards for           


                                                                                

1   a nursing home under the laws and rules of this state and the               

                                                                                

2   United States department of health and human services, to the               

                                                                                

3   extent found necessary by the attending physician, dentist, or              

                                                                                

4   certified Christian Science practitioner.  An eligible individual           

                                                                                

5   may receive nursing services in a short-term nursing care program           

                                                                                

6   established under section 22210 of the public health code, 1978             

                                                                                

7   PA 368, MCL 333.22210, to the extent found necessary by the                 

                                                                                

8   attending physician when the combined length of stay in the acute           

                                                                                

9   care bed and short-term nursing care bed exceeds the average                

                                                                                

10  length of stay for medicaid hospital diagnostic related group               

                                                                                

11  reimbursement.  The department of community health shall not make           

                                                                                

12  a final payment  pursuant to  under title XIX for benefits                  

                                                                                

13  available under title XVIII without documentation that title                

                                                                                

14  XVIII claims have been filed and denied.  The department of                 

                                                                                

15  community health shall pay for nursing home services  in                    

                                                                                

16  accordance with  according to the state plan for medical                    

                                                                                

17  assistance adopted  pursuant  according to section 10 and                   

                                                                                

18  approved by the United States department of health and human                

                                                                                

19  services.  A county shall reimburse a county maintenance of                 

                                                                                

20  effort rate determined on an annual basis for each patient day of           

                                                                                

21  medicaid nursing home services provided to eligible individuals             

                                                                                

22  in long-term care facilities owned by the county and licensed to            

                                                                                

23  provide nursing home services.  For purposes of determining rates           

                                                                                

24  and costs described in this subdivision, all of the following               

                                                                                

25  apply:                                                                      

                                                                                

26                                                                               (i) For county owned facilities with per patient day updated                        

                                                                                

27  variable costs exceeding the variable cost limit for the county             


                                                                                

1   facility, county maintenance of effort rate means 45% of the                

                                                                                

2   difference between per patient day updated variable cost and the            

                                                                                

3   concomitant nursing home-class variable cost limit, the quantity            

                                                                                

4   offset by the difference between per patient day updated variable           

                                                                                

5   cost and the concomitant variable cost limit for the county                 

                                                                                

6   facility.  The county rate shall not be less than zero.                     

                                                                                

7       (ii) For county owned facilities with per patient day updated                

                                                                                

8   variable costs not exceeding the variable cost limit for the                

                                                                                

9   county facility, county maintenance of effort rate means 45% of             

                                                                                

10  the difference between per patient day updated variable cost and            

                                                                                

11  the concomitant nursing home class variable cost limit.                     

                                                                                

12      (iii) For county owned facilities with per patient day                       

                                                                                

13  updated variable costs not exceeding the concomitant nursing home           

                                                                                

14  class variable cost limit, the county maintenance of effort rate            

                                                                                

15  shall equal zero.                                                           

                                                                                

16      (iv) For the purposes of this section:  "per patient day                     

                                                                                

17  updated variable costs and the variable cost limit for the county           

                                                                                

18  facility" shall be determined  pursuant  according to the state             

                                                                                

19  plan for medical assistance; for freestanding county facilities             

                                                                                

20  the "nursing home class variable cost limit" shall be determined            

                                                                                

21  pursuant  according to the state plan for medical assistance and           

                                                                                

22  for hospital attached county facilities the "nursing class                  

                                                                                

23  variable cost limit" shall be determined  pursuant  according to            

                                                                                

24  the state plan for medical assistance plus $5.00 per patient day;           

                                                                                

25  and "freestanding" and "hospital attached" shall be determined              

                                                                                

26  in accordance with  according to the federal regulations.                  

                                                                                

27      (v) If the county maintenance of effort rate computed  in                   


                                                                                

1   accordance with  according to this section exceeds the county               

                                                                                

2   maintenance of effort rate in effect as of September 30, 1984,              

                                                                                

3   the rate in effect as of September 30, 1984 shall remain in                 

                                                                                

4   effect until a time that the rate computed  in accordance with              

                                                                                

5   according to this section is less than the September 30, 1984               

                                                                                

6   rate.  This limitation remains in effect until December 31,                 

                                                                                

7   2007.  For each subsequent county fiscal year the maintenance of            

                                                                                

8   effort may not increase by more than $1.00 per patient day each             

                                                                                

9   year.                                                                       

                                                                                

10      (vi) For county owned facilities, reimbursement for plant                    

                                                                                

11  costs will continue to be based on interest expense and                     

                                                                                

12  depreciation allowance unless otherwise provided by law.                    

                                                                                

13      (d) An eligible individual may receive pharmaceutical                       

                                                                                

14  services from a licensed pharmacist of the person's choice as               

                                                                                

15  prescribed by a licensed physician or dentist and approved by the           

                                                                                

16  department of community health.  In an emergency, but not                   

                                                                                

17  routinely, the individual may receive pharmaceutical services               

                                                                                

18  rendered personally by a licensed physician or dentist on the               

                                                                                

19  same basis as approved for pharmacists.                                     

                                                                                

20      (e) An eligible individual may receive other medical and                    

                                                                                

21  health services as authorized by the department of community                

                                                                                

22  health.                                                                     

                                                                                

23      (f) Psychiatric care may also be provided  pursuant                         

                                                                                

24  according to the guidelines established by the department of                

                                                                                

25  community health to the extent of appropriations made available             

                                                                                

26  by the legislature for the fiscal year.                                     

                                                                                

27      (g) An eligible individual may receive dental services as                   


                                                                                

1   authorized under a voucher program established by the                       

                                                                                

2   department.  The department shall establish a voucher program to            

                                                                                

3   implement this subdivision.                                                 

                                                                                

4       (2) The director shall provide notice to the public,  in                    

                                                                                

5   accordance with  according to applicable federal regulations, and           

                                                                                

6   shall obtain the approval of the committees on appropriations of            

                                                                                

7   the house of representatives and senate of the legislature of               

                                                                                

8   this state, of a proposed change in the statewide method or level           

                                                                                

9   of reimbursement for a service, if the proposed change is                   

                                                                                

10  expected to increase or decrease payments for that service by 1%            

                                                                                

11  or more during the 12 months after the effective date of the                

                                                                                

12  change.                                                                     

                                                                                

13      (3) As used in this act:                                                    

                                                                                

14      (a) "Title XVIII" means title XVIII of the social security                  

                                                                                

15  act, chapter 531, 49 Stat. 620, 42 U.S.C. 1395 to 1395b, 1395b-2,           

                                                                                

16  1395b-6 to 1395b-7, 1395c to 1395i, 1395i-2 to 1395i-5, 1395j to            

                                                                                

17  1395t, 1395u to 1395w, 1395w-2 to 1395w-4, 1395w-21 to 1395w-28,            

                                                                                

18  1395x to 1395yy, and 1395bbb to 1395ggg.                                    

                                                                                

19      (b) "Title XIX" means title XIX of the social security act,                 

                                                                                

20  chapter 531, 49 Stat. 620, 42 U.S.C. 1396 to 1396r-6 and 1396r-8            

                                                                                

21  to 1396v.                                                                   

                                                                                

22      (c) "Title XX" means title XX of the social security act,                   

                                                                                

23  chapter 531, 49 Stat. 620, 42 U.S.C. 1397 to 1397f.