REVISED
STATEMENT OF PURPOSE
RS27398 / H0351
This legislation reduces net reimbursements to hospitals and nursing facilities in SFY 2020 and SFY 2021 to
help achieve the Medicaid general fund needs of a 1% overall reduction in SFY 2020 and a 2% reduction in
SFY 2021. It directs the Department of Health and Welfare to work collaborative with hospital and nursing
facility providers to update reimbursement methods. For hospitals it involves a statewide move to value-based
payment and the establishment of a quality payment program. For both hospitals and nursing facilities, the
legislation will move Medicaid payment methods away from cost-based reimbursement to allow better control
of Medicaid expenditures as well as incentivize and promote quality care and better health outcomes.
FISCAL NOTE
This legislation is expected to reduce general fund needs by approximately $4.9 million in SFY 2020 and
by approximately $13.7 million in SFY 2021, as incorporated in the governor's budget recommendation. To
support providers through these reductions, the legislation would require additional dedicated fund spending
authority for assessment increases, by approximately $2.3 million in SFY 2020 and $15.2 million in SFY 2021,
along with additional federal spending authority for approximately $5.5 million in SFY 2020 and $15.4 million
in SFY 2021. These authorities would be addressed through a trailer bill.
Contact:
Matt Wimmer
Department of Health and Welfare
(208) 364-1804
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN REVISED: 02/20/2020, 3:53 PM


Statutes affected:
Bill Text: 56-265, 56-1505