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. It repeals and reenacts the definition of "hospitals" in RSA 167:63, IV, clarifying that it pertains to general acute care hospitals licensed under RSA 151, while excluding government facilities and special rehabilitation hospitals. The bill establishes an uncompensated care and Medicaid fund in the state treasury, which will be funded by collections under RSA 84-A and exempt from state budget reductions. These funds will be continually appropriated to the Department of Health and Human Services for hospital and provider payments, as well as Medicaid services.

Additionally, the bill outlines the Medicaid payment process to hospitals starting in fiscal year 2026, with the Department of Health and Human Services' commissioner responsible for determining payment methods to minimize reimbursement reductions and maximize federal matching funds. It specifies that disproportionate share hospital payments will only be made to qualifying hospitals and mandates collaboration between the commissioner and hospitals in response to federal law changes. The bill also requires that at least 9% of funds collected under RSA 84-A be allocated to support Medicaid services, prioritizing community mental health centers. A committee will be formed to study the Medicaid enhancement tax and the relationship with disproportionate share hospital payments, with findings due by November 1, 2025. The act is set to take effect on July 1, 2025, and amends RSA 6:12 to update the reference for the disproportionate share hospital fund.

Statutes affected:
Introduced: 6:12
As Amended by the Senate: 6:12
As Amended by the House: 6:12
Version adopted by both bodies: 6:12
CHAPTERED FINAL VERSION: 6:12