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. Key changes include the revision of the definition of "hospitals" to exclude government facilities and special rehabilitation hospitals. The bill 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 and to support Medicaid services. Starting in fiscal year 2026, Medicaid payments to hospitals will be set at 80% of the funds collected from a specific revenue source in the previous fiscal year. Additionally, the bill outlines eligibility criteria for hospitals to qualify for disproportionate share payments, ensuring that only those meeting federal definitions are eligible.

The bill also includes a requirement for the commissioner to submit a document detailing any changes to the Medicaid payment methodology to the fiscal committee of the general court before implementation, although this document is for informational purposes only and does not require the committee's approval. It amends RSA 6:12, I(b)(397) to update the reference from "V" to "XII" regarding the moneys deposited in the disproportionate share hospital fund established in RSA 167:64. Furthermore, the bill repeals RSA 167:64, II, concerning Medicaid payments to hospitals, effective July 1, 2032, while the rest of the act will take effect on July 1, 2025. The fiscal impact of the bill remains undetermined as further information is awaited from the Department of Health and Human Services.

Statutes affected:
Introduced: 6:12