HB5000ham002 93RD GENERAL ASSEMBLY

Rep. Lee A. Daniels

Filed: 3/24/2004

09300HB5000ham002 LRB093 16715 DRJ 49002 a

AMENDMENT TO HOUSE BILL 5000

AMENDMENT NO. ______. Amend House Bill 5000, AS AMENDED, with reference to the page and line numbers of House Amendment No. 1, on page 1, by replacing line 5 with the following:

"by adding Sections 1-35 and 1-36 as follows:"; and

on page 1, by replacing lines 13 through 15 with "process and utilize performance-based contracts in the"; and

on page 1, by replacing lines 18 and 19 with "competitive selection process and performance measurement. Nothing in this Section"; and

on page 1, by replacing lines 22 and 23 with "subject to requests for proposals before January 1, 2004."; and

on page 2, by replacing lines 16 and 17 with "under this project to $64,000,000 with respect to no more than the"; and

on page 5, after line 5, by inserting the following:

"(20 ILCS 1305/1-36 new)

Sec. 1-36. Fee-for-service contracts.

(a) The Illinois Department of Human Services shall implement policies and procedures for the procurement of community services under its jurisdiction in a manner that will ensure the maximum amount of federal financial participation in the cost of such services. For the community services that may be eligible for federal financial participation, the Department of Human Services may issue and execute contracts that include provisions for payment on a fee-for-service basis after July 1, 2004 under the terms and conditions set forth in this Section.

(b) Contracts must ensure that eligible persons receiving services in the fiscal year beginning July 1, 2003 will continue to receive necessary services without interruption. Provider and client relationships necessary to ensure continuity and quality of care shall be preserved.

(c) The Department of Human Services, in consultation with the departments of Public Aid, Public Health, and Children and Family Services and the Department on Aging, if applicable to the services under contract, shall adopt rules establishing the criteria, standards, and procedures for the issuance and execution of the fee-for-service contracts. Ninety days before the publication of proposed rules, the Department shall publish a notice of the intent to adopt the rules and conduct public hearings and provide an opportunity for public review and comment.

(d) Approved claims for payments for community services under grants or fee-for-service contracts shall be paid in 12 monthly payments equal to 1/12 of the contract or grant amount, to be received no later than the 8th calendar day of each month. The Department may adjust the amount of payments for errors or improper payments.

(e) For the fiscal year beginning July 1, 2004, to ensure continuity of services for recipients of community services administered by the Department of Human Services, and to ensure a smooth transition from any payment methodology not based on fee-for-service contracts, the Department shall fund community services provided by individuals, organizations, or agencies meeting conditions of participation through a combination of grants and contracts at amounts at least equal to the amounts in effect for the prior fiscal year beginning July 1, 2003. Grant and contract obligations in effect beginning July 1, 2004 shall at least maintain the service capacity in effect for the prior fiscal year.

(f) The Department of Human Services shall conduct a survey of the community services for which it will contract on a fee-for-service basis to determine the cost of services and other factors upon which the rates of payment shall be based. An initial cost survey shall be conducted by September 1, 2004. Subsequent cost surveys shall be conducted by January 1, 2007 and by January 1 every 3 years thereafter. Beginning July 1, 2007, the Department shall, by rule, set rates to be paid for the various types of community services based on the results of the cost surveys required by this Section.".