This bill modifies the funding structure for uncompensated care costs within the state Medicaid program, particularly focusing on the distribution of disproportionate share hospital payments. A significant change is the repeal of the percentage of funds allocated for Medicaid payments to hospitals, effective July 1, 2027. The bill introduces a new definition of "hospitals" under RSA 167:63, IV, which excludes government facilities and special rehabilitation hospitals. It also establishes an uncompensated care and Medicaid fund that is exempt from state budget reductions, allowing the Department of Health and Human Services to use these funds for hospital and provider payments, as well as Medicaid services.

Additionally, the bill mandates that starting in fiscal year 2026, Medicaid payments to hospitals will be set at 91% of the funds collected under RSA 84-A from the previous fiscal year, a change from the previously proposed 80% under the governor's budget. It emphasizes collaboration between the Department of Health and Human Services and hospitals to determine payment methods while preventing reimbursement reductions. The bill also stipulates that disproportionate share hospital payments will only be made to hospitals meeting specific federal criteria and establishes a committee to study the Medicaid enhancement tax and hospital payments, with a report due by November 1, 2025. The relevant provision for these payments will be repealed effective July 1, 2027, indicating a temporary adjustment to the funding mechanism for hospitals.

Statutes affected:
Introduced: 6:12
As Amended by the Senate: 6:12