HB793: relative to reimbursement rates for home health services and making an appropriation therefor.

HB 793-FN-A - AS INTRODUCED

2003 SESSION

03-0739

01/10

HOUSE BILL 793-FN-A

AN ACT relative to reimbursement rates for home health services and making an appropriation therefor.

SPONSORS: Rep. Emerton, Hills 48; Rep. Patten, Carr 7; Rep. P. Katsakiores, Rock 77; Rep. French, Merr 34; Rep. Dalrymple, Rock 76; Sen. Martel, Dist 18; Sen. Sapareto, Dist 19; Sen. Kenney, Dist 3

COMMITTEE: Finance

ANALYSIS

This bill establishes reimbursement rates for home health services.

This bill makes an appropriation to the department of health and human services.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0739

01/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to reimbursement rates for home health services and making an appropriation therefor.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Reimbursement Rates for Home Health Services. RSA 126-A:18-a is repealed and reenacted to read as follows:

126-A:18-a Reimbursement Rates for Home Health Services.

I. The commissioner of health and human services shall establish as unit medicaid reimbursement rates for home health service rates that would exist had annual adjustments been made, beginning October 1, 1999 and then each October 1 thereafter, proportionate to any changes in the federal home health market basket index.

II. The commissioner of health and human services shall annually, on October 1, adjust the medicaid reimbursement rates for home health services proportionate to any change in the federal home health market basket index.

2 Appropriation. The sum of $1 is hereby appropriated for the biennium ending June 30, 2005 to the department of health and human services for the purposes of this act. The governor is authorized to draw a warrant for said sum out of any funds not otherwise appropriated.

3 Effective Date. This act shall take effect July 1, 2003.

LBAO

03-0739

1/21/03

HB 793-FN-A - FISCAL NOTE

AN ACT relative to reimbursement rates for home health services and making an appropriation therefor.

FISCAL IMPACT:

The Department of Health and Human Services stated this bill will increase state expenditures by $3,349,120 in FY 2004, $4,315,138 in FY 2005, $5,380,414 in FY 2006 and $6,557,397 in FY 2007. State revenue will increase by $2,215,371 in FY 2004, $2,850,195 in FY 2005, $3,545,460 in FY 2006 and $4,308,160 in FY 2007. County expenditures will increase by $540,811 in FY 2004, $692,626 in FY 2005, $855,253 in FY 2006 and $1,029,462 in FY 2007. There will be no fiscal impact on county and local revenue or local expenditures.

This bill appropriates $1 from the general fund to the Department of Health and Human Services for the biennium ending June 30, 2005 for the purposes of this act.

METHODOLOGY:

The Department assumed the annual growth in utilization of home health services would continue through FY 2007 at the current rate, and that the federal home health market basket inflation would remain at 3.2%. In order to compute the reimbursement rates for FY 2004, the Department applied the federal home health market basket inflation updates for October 1999 through October 2002 to the base rates for services on February 1, 1999. The Department estimated the utilization or number of units for FY 2004 by applying the current annual growth rate to the actual units in FY 2002. These utilization growth rates and home health market basket inflation were then applied to fiscal years 2005 through 2007.

The counties share 25% of the cost of the services provided under the Elderly and Chronically III waiver. The Department separately identified the costs for those services paid through the Division of Elderly and Adult Services and applied 25% to compute the cost to the counties.