MR. PRESIDENT:
I move
that Engrossed House Bill 1866 be amended to read as follows:
PASSAGE".
Page 2, line 27, delete "The" and insert " Effective July 1, 2001,
the".
Page 2, line 34, delete "Each", begin a new paragraph, and insert:
" (b) Not later than sixty (60) days after the effective date of this
act, each".
Page 2, line 36, after "." begin a new paragraph and insert:
" (c) The state's rate setting contractor shall:
(1) accept current liability insurance expense information
from providers at any time before July 1, 2004; and
(2) calculate and pay a modified reimbursement rate as
described in subsections (d) through (f).
(d)".
Page 2, line 39, after "liability" insert " insurance expense
information, including".
Page 2, line 39, after "documentation" insert " ,".
Page 2, line 41, delete "The" and insert " If the effective date of the
policy is earlier than the sixteenth day of that month, the".
Page 2, line 42, delete "month, if the effective date of the policy is
between the first" and insert " month. If the effective date of the
policy is later than the fifteenth day of that month, the rate
adjustment is effective on the first day of the month following the
month in which the policy is effective.".
Page 3, delete lines 1 through 3, begin a new paragraph and insert:
" (e) The cost of professional liability insurance shall be
removed from the administrative component on July 1, 2001,
using the following methodology:
STEP ONE: Divide the inflated liability insurance per diem
expense by the allowable administrative per patient day costs.
STEP TWO: Multiply the amount calculated under STEP
ONE by the administrative component of the rate.
STEP THREE: Subtract the amount calculated under STEP
TWO from the administrative component of the rate.
The information needed to perform the calculation under this
subsection shall be obtained from the work papers of the state's
rate setting contractor for the most recent annual rate review for
each facility.
(f) The administrative component and professional liability
insurance component are the only two rate components that are
adjusted on July 1, 2001, other than adjustments from routine
annual rate reviews. The median administrative component cost
that excludes the professional liability insurance shall not be
applied for each nursing facility until the facility's first annual
rate review on or after July 1, 2001.
(g)".
Page 3, line 5, delete "must" and insert " shall".
Page 3, line 7, after "." insert " Beginning July 1, 2004, the
calculation of the administrative component of each provider's
rate shall include professional liability insurance in the median
administrative component cost.".
Page 3, line 8, delete "(b)" and insert "(h)".
Page 3, line 10, delete "July" and insert "June".
Page 3, line 11, after "IC 4-22-2" insert " that are effective July 1,
2002,".
Page 5, between lines 34 and 35, begin a new paragraph and insert:
" (c) The rules adopted under this SECTION must include the
rules adopted under SECTION 7 of this act.".
Page 5, line 35, delete "(c)" and insert " (d)".
Page 5, line 40, delete "2" and insert " 5".
Page 6, line 4, after "under" insert " SECTION 6 of".
Page 6, line 27, delete "3(a)(1)" and insert " 6(a)(1)".
Page 6, line 34, delete "voluntary".
Page 7, line 12, delete "voluntary".
Page 8, line 7, delete "Apply" and insert " Submit a state plan
amendment".
Page 8, line 8, after "Administration" insert " to apply".
Page 8, between lines 9 and 10, begin a new paragraph and insert:
" (f) Before July 1, 2001, the office shall publish public notice in
accordance with the regulations of the federal Health Care
Financing Administration of the office's intent to implement the
programs and mechanisms developed under subsection (e).".
Page 8, line 10, delete "(f)" and insert " (g)".
Page 8, between lines 33 and 34, begin a new paragraph and insert: