State of Illinois
90th General Assembly
Legislation

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90_SB1706ham003

                                           LRB9011519EGfgam04
 1                    AMENDMENT TO SENATE BILL 1706
 2        AMENDMENT NO.     .  Amend Senate Bill 1706 on page 1, by
 3    inserting below line 9 the following:
 4        "Section 10.  The Illinois Administrative  Procedure  Act
 5    is amended by changing Section 5-45 as follows:
 6        (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
 7        Sec. 5-45.  Emergency rulemaking.
 8        (a)  "Emergency"  means  the  existence  of any situation
 9    that any agency finds reasonably constitutes a threat to  the
10    public interest, safety, or welfare.
11        (b)  If  any  agency  finds that an emergency exists that
12    requires adoption of a rule upon fewer days than is  required
13    by  Section  5-40  and states in writing its reasons for that
14    finding, the agency may adopt an emergency rule without prior
15    notice  or  hearing  upon  filing  a  notice   of   emergency
16    rulemaking  with  the  Secretary of State under Section 5-70.
17    The notice shall include the text of the emergency  rule  and
18    shall  be published in the Illinois Register.  Consent orders
19    or other court orders adopting settlements negotiated  by  an
20    agency  may  be  adopted  under  this  Section.   Subject  to
21    applicable   constitutional   or   statutory  provisions,  an
22    emergency rule  becomes  effective  immediately  upon  filing
                            -2-            LRB9011519EGfgam04
 1    under  Section  5-65  or  at a stated date less than 10  days
 2    thereafter.  The agency's finding  and  a  statement  of  the
 3    specific  reasons  for  the  finding  shall be filed with the
 4    rule.  The  agency  shall  take  reasonable  and  appropriate
 5    measures to make emergency rules known to the persons who may
 6    be affected by them.
 7        (c)  An  emergency  rule may be effective for a period of
 8    not longer than 150 days, but the agency's authority to adopt
 9    an identical rule under Section 5-40 is  not  precluded.   No
10    emergency  rule may be adopted more than once in any 24 month
11    period,  except  that  this  limitation  on  the  number   of
12    emergency rules that may be adopted in a 24 month period does
13    not  apply  to (i) emergency rules that make additions to and
14    deletions from the Drug Manual under Section  5-5.16  of  the
15    Illinois  Public Aid Code or the generic drug formulary under
16    Section 3.14 of the Illinois Food, Drug and Cosmetic  Act  or
17    (ii)  emergency  rules adopted by the Pollution Control Board
18    before July 1, 1997 to implement portions  of  the  Livestock
19    Management  Facilities  Act.   Two  or  more  emergency rules
20    having substantially the same purpose  and  effect  shall  be
21    deemed to be a single rule for purposes of this Section.
22        (d)  In  order  to provide for the expeditious and timely
23    implementation of the State's fiscal year 1999  1998  budget,
24    emergency rules to implement any provision of this amendatory
25    Act  of  1998  1997 or any other budget initiative for fiscal
26    year 1999 1998 may be adopted in accordance with this Section
27    by the agency charged with administering  that  provision  or
28    initiative,  except  that  the  24-month  limitation  on  the
29    adoption  of  emergency  rules and the provisions of Sections
30    5-115 and 5-125 do not apply  to  rules  adopted  under  this
31    subsection  (d).   The adoption of emergency rules authorized
32    by this subsection (d) shall be deemed to  be  necessary  for
33    the public interest, safety, and welfare.
34    (Source: P.A. 89-714, eff. 2-21-97; 90-9, eff. 7-1-97.)
                            -3-            LRB9011519EGfgam04
 1        Section  15.   The Illinois Public Aid Code is amended by
 2    changing Sections 5-5.02, 5-5.4, 12-4.34, and 14-8 and adding
 3    Section 12-4.35 as follows:
 4        (305 ILCS 5/5-5.02) (from Ch. 23, par. 5-5.02)
 5        Sec. 5-5.02. Hospital reimbursements.
 6        (a)  Reimbursement to Hospitals;  July  1,  1992  through
 7    September  30, 1992.  Notwithstanding any other provisions of
 8    this Code or  the  Illinois  Department's  Rules  promulgated
 9    under    the    Illinois    Administrative   Procedure   Act,
10    reimbursement to hospitals for services provided  during  the
11    period  July  1, 1992 through September 30, 1992, shall be as
12    follows:
13             (1)  For inpatient hospital services rendered, or if
14        applicable, for inpatient hospital discharges  occurring,
15        on  or  after July 1, 1992 and on or before September 30,
16        1992, the Illinois Department shall  reimburse  hospitals
17        for    inpatient   services   under   the   reimbursement
18        methodologies in effect for each  hospital,  and  at  the
19        inpatient  payment  rate calculated for each hospital, as
20        of June  30,  1992.   For  purposes  of  this  paragraph,
21        "reimbursement  methodologies"  means  all  reimbursement
22        methodologies  that pertain to the provision of inpatient
23        hospital services, including, but  not  limited  to,  any
24        adjustments  for disproportionate share, targeted access,
25        critical care access and uncompensated care,  as  defined
26        by the Illinois Department on June 30, 1992.
27             (2)  For  the  purpose  of calculating the inpatient
28        payment  rate  for  each  hospital  eligible  to  receive
29        quarterly adjustment payments  for  targeted  access  and
30        critical  care,  as defined by the Illinois Department on
31        June 30, 1992, the adjustment payment for the period July
32        1, 1992 through September 30, 1992, shall be 25%  of  the
33        annual  adjustment  payments calculated for each eligible
                            -4-            LRB9011519EGfgam04
 1        hospital, as of June 30, 1992.  The  Illinois  Department
 2        shall  determine  by  rule  the  adjustment  payments for
 3        targeted access and critical care  beginning  October  1,
 4        1992.
 5             (3)  For  the  purpose  of calculating the inpatient
 6        payment  rate  for  each  hospital  eligible  to  receive
 7        quarterly adjustment payments for uncompensated care,  as
 8        defined  by the Illinois Department on June 30, 1992, the
 9        adjustment payment for the period August 1, 1992  through
10        September  30,  1992,  shall  be  one-sixth  of the total
11        uncompensated care  adjustment  payments  calculated  for
12        each  eligible  hospital  for the uncompensated care rate
13        year, as defined by the Illinois  Department,  ending  on
14        July  31,  1992.  The Illinois Department shall determine
15        by rule the adjustment payments  for  uncompensated  care
16        beginning October 1, 1992.
17        (b)  Inpatient payments.  For inpatient services provided
18    on  or  after  October 1, 1993, in addition to rates paid for
19    hospital inpatient services pursuant to the  Illinois  Health
20    Finance  Reform  Act,  as  now  or  hereafter amended, or the
21    Illinois Department's prospective reimbursement  methodology,
22    or  any other methodology used by the Illinois Department for
23    inpatient  services,  the  Illinois  Department  shall   make
24    adjustment  payments, in an amount calculated pursuant to the
25    methodology described in paragraph (c) of  this  Section,  to
26    hospitals that the Illinois Department determines satisfy any
27    one of the following requirements:
28             (1)  Hospitals that are described in Section 1923 of
29        the  federal  Social  Security  Act,  as now or hereafter
30        amended; or
31             (2)  Illinois  hospitals  that   have   a   Medicaid
32        inpatient  utilization  rate which is at least one-half a
33        standard deviation  above  the  mean  Medicaid  inpatient
34        utilization  rate for all hospitals in Illinois receiving
                            -5-            LRB9011519EGfgam04
 1        Medicaid payments from the Illinois Department; or
 2             (3)  Illinois hospitals that on July 1, 1991  had  a
 3        Medicaid   inpatient  utilization  rate,  as  defined  in
 4        paragraph (f) of this Section, that was at least the mean
 5        Medicaid inpatient utilization rate for all hospitals  in
 6        Illinois  receiving  Medicaid  payments from the Illinois
 7        Department and which were located in a planning area with
 8        one-third or fewer  excess  beds  as  determined  by  the
 9        Illinois  Health  Facilities Planning Board, and that, as
10        of June 30, 1992, were located in a federally  designated
11        Health Manpower Shortage Area; or
12             (4)  Illinois hospitals that:
13                  (A)  have a Medicaid inpatient utilization rate
14             that   is  at  least  equal  to  the  mean  Medicaid
15             inpatient utilization  rate  for  all  hospitals  in
16             Illinois   receiving   Medicaid  payments  from  the
17             Department; and
18                  (B)  also have a Medicaid obstetrical inpatient
19             utilization rate  that  is  at  least  one  standard
20             deviation   above   the  mean  Medicaid  obstetrical
21             inpatient utilization  rate  for  all  hospitals  in
22             Illinois   receiving   Medicaid  payments  from  the
23             Department for obstetrical services; or
24             (5)  Any children's hospital, which means a hospital
25        devoted exclusively to caring for children.   A  hospital
26        which  includes  a facility devoted exclusively to caring
27        for children that is separately licensed as a hospital by
28        a municipality prior  to  September  30,  1998  shall  be
29        considered  a  children's hospital to the degree that the
30        hospital's Medicaid care is provided to children.
31        (c)  Inpatient  adjustment  payments.    The   adjustment
32    payments  required by paragraph (b) shall be calculated based
33    upon the hospital's Medicaid inpatient  utilization  rate  as
34    follows:
                            -6-            LRB9011519EGfgam04
 1             (1)  hospitals with a Medicaid inpatient utilization
 2        rate  below  the  mean shall receive a per day adjustment
 3        payment equal to $25;
 4             (2)   hospitals   with    a    Medicaid    inpatient
 5        utilization  rate  that  is  equal to or greater than the
 6        mean Medicaid inpatient utilization rate  but  less  than
 7        one  standard deviation above the mean Medicaid inpatient
 8        utilization rate  shall  receive  a  per  day  adjustment
 9        payment  equal  to  the  sum  of $25 plus $1 for each one
10        percent   that   the   hospital's   Medicaid    inpatient
11        utilization  rate  exceeds  the  mean  Medicaid inpatient
12        utilization rate;
13             (3)   hospitals   with    a    Medicaid    inpatient
14        utilization  rate  that  is  equal to or greater than one
15        standard deviation  above  the  mean  Medicaid  inpatient
16        utilization  rate  but  less than 1.5 standard deviations
17        above the mean Medicaid inpatient utilization rate  shall
18        receive  a per day adjustment payment equal to the sum of
19        $40 plus $7 for each  one  percent  that  the  hospital's
20        Medicaid  inpatient utilization rate exceeds one standard
21        deviation above the mean Medicaid  inpatient  utilization
22        rate; and
23             (4)   hospitals    with    a    Medicaid   inpatient
24        utilization rate that is equal to  or  greater  than  1.5
25        standard  deviations  above  the  mean Medicaid inpatient
26        utilization rate  shall  receive  a  per  day  adjustment
27        payment  equal  to  the  sum  of $90 plus $2 for each one
28        percent   that   the   hospital's   Medicaid    inpatient
29        utilization  rate  exceeds  1.5 standard deviations above
30        the mean Medicaid inpatient utilization rate.
31        (d)  Supplemental adjustment payments.   In  addition  to
32    the adjustment payments described in paragraph (c), hospitals
33    as  defined  in  clauses  (1)  through  (5) of paragraph (b),
34    excluding county hospitals (as defined in subsection  (c)  of
                            -7-            LRB9011519EGfgam04
 1    Section 15-1 of this Code) and a hospital organized under the
 2    University   of   Illinois   Hospital   Act,  shall  be  paid
 3    supplemental inpatient adjustment payments of  $60  per  day.
 4    For purposes of Title XIX of the federal Social Security Act,
 5    these   supplemental   adjustment   payments   shall  not  be
 6    classified as adjustment payments to  disproportionate  share
 7    hospitals.
 8        (e)  The   inpatient  adjustment  payments  described  in
 9    paragraphs (c) and (d) shall be increased on October 1,  1993
10    and  annually  thereafter by a percentage equal to the lesser
11    of (i) the increase in the DRI hospital cost  index  for  the
12    most  recent 12 month period for which data are available, or
13    (ii)  the  percentage  increase  in  the  statewide   average
14    hospital  payment  rate  over  the  previous year's statewide
15    average hospital payment rate.   The  sum  of  the  inpatient
16    adjustment  payments  under  paragraphs  (c)  and  (d)  to  a
17    hospital,  other  than  a  county  hospital  (as  defined  in
18    subsection  (c)  of  Section 15-1 of this Code) or a hospital
19    organized under the  University  of  Illinois  Hospital  Act,
20    however,  shall  not exceed $275 per day; that limit shall be
21    increased on October 1, 1993 and  annually  thereafter  by  a
22    percentage equal to the lesser of (i) the increase in the DRI
23    hospital  cost  index for the most recent 12-month period for
24    which data are available or (ii) the percentage  increase  in
25    the statewide average hospital payment rate over the previous
26    year's statewide average hospital payment rate.
27        (f)   Children's  hospital inpatient adjustment payments.
28    For  children's  hospitals,  as  defined  in  clause  (5)  of
29    paragraph (b), the adjustment payments required  pursuant  to
30    paragraphs (c) and (d) shall be multiplied by 2.0.
31        (g)   County hospital inpatient adjustment payments.  For
32    county  hospitals,  as  defined  in subsection (c) of Section
33    15-1 of this Code, there shall be an  adjustment  payment  as
34    determined by rules issued by the Illinois Department.
                            -8-            LRB9011519EGfgam04
 1        (h)   For  the  purposes  of  this  Section the following
 2    terms shall be defined as follows:
 3             (1)  "Medicaid inpatient utilization rate"  means  a
 4        fraction,  the  numerator  of  which  is  the number of a
 5        hospital's inpatient days provided in  a  given  12-month
 6        period  to patients who, for such days, were eligible for
 7        Medicaid under Title XIX of the federal  Social  Security
 8        Act,  and the denominator of which is the total number of
 9        the hospital's inpatient days in that same period.
10             (2)  "Mean  Medicaid  inpatient  utilization   rate"
11        means   the  total  number  of  Medicaid  inpatient  days
12        provided by all Illinois Medicaid-participating hospitals
13        divided by the total number of inpatient days provided by
14        those same hospitals.
15             (3)  "Medicaid  obstetrical  inpatient   utilization
16        rate"  means  the ratio of Medicaid obstetrical inpatient
17        days to total Medicaid inpatient days  for  all  Illinois
18        hospitals  receiving  Medicaid payments from the Illinois
19        Department.
20        (i)   Inpatient adjustment payment limit.   In  order  to
21    meet  the limits of Public Law 102-234 and Public Law 103-66,
22    the Illinois Department shall by rule adjust disproportionate
23    share adjustment payments.
24        (j)  University of Illinois Hospital inpatient adjustment
25    payments.  For hospitals organized under  the  University  of
26    Illinois  Hospital  Act, there shall be an adjustment payment
27    as determined by rules adopted by the Illinois Department.
28        (k)  The  Illinois  Department  may  by  rule   establish
29    criteria   for   and  develop  methodologies  for  adjustment
30    payments to hospitals participating under this Article.
31    (Source: P.A. 88-88; 89-21, eff. 7-1-95.)
32        (305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4)
33        Sec. 5-5.4.  Standards of Payment - Department of  Public
                            -9-            LRB9011519EGfgam04
 1    Aid.  The Department of Public Aid shall develop standards of
 2    payment  of skilled nursing and intermediate care services in
 3    facilities providing such services under this Article which:
 4        (1)  Provides  for  the  determination  of  a  facility's
 5    payment for skilled nursing and intermediate care services on
 6    a prospective basis.  The amount of the payment rate for  all
 7    nursing  facilities  certified  under  the medical assistance
 8    program shall be prospectively established  annually  on  the
 9    basis   of   historical,   financial,  and  statistical  data
10    reflecting actual costs from  prior  years,  which  shall  be
11    applied  to  the current rate year and updated for inflation,
12    except that the capital cost element  for  newly  constructed
13    facilities  shall  be  based  upon  projected  budgets.   The
14    annually established payment rate shall take effect on July 1
15    in  1984  and  subsequent  years.   Rate  increases  shall be
16    provided annually thereafter on July 1 in 1984  and  on  each
17    subsequent July 1 in the following years, except that no rate
18    increase  and no update for inflation shall be provided on or
19    after  July  1,  1994  and  before  July  1,   1999,   unless
20    specifically  provided  for  in this Section.  For facilities
21    licensed by the Department of Public Health under the Nursing
22    Home Care Act as Intermediate Care  for  the  Developmentally
23    Disabled  facilities  or  Long  Term  Care  for  Under Age 22
24    facilities, the rates taking effect on  July  1,  1998  shall
25    include  an  increase  of 3%.  For facilities licensed by the
26    Department of Public Health under the Nursing Home  Care  Act
27    as   Skilled   Nursing   facilities   or   Intermediate  Care
28    facilities, the rates taking effect on  July  1,  1998  shall
29    include  an  increase  of  3% plus $1.10 per resident-day, as
30    defined by the Department.  Rates established effective  each
31    July  1 shall govern payment for services rendered throughout
32    that fiscal year, except that rates established  on  July  1,
33    1996  shall  be increased by 6.8% for services provided on or
34    after January 1, 1997.  Such rates will  be  based  upon  the
                            -10-           LRB9011519EGfgam04
 1    rates calculated for the year beginning July 1, 1990, and for
 2    subsequent  years  thereafter  shall be based on the facility
 3    cost reports for the facility fiscal year ending at any point
 4    in time during the previous calendar  year,  updated  to  the
 5    midpoint  of the rate year.  The cost report shall be on file
 6    with the Department no later than April 1 of the current rate
 7    year.  Should the cost report not be on file by April 1,  the
 8    Department  shall  base  the  rate  on the latest cost report
 9    filed by each skilled care  facility  and  intermediate  care
10    facility,  updated  to the midpoint of the current rate year.
11    In determining rates for services rendered on and after  July
12    1,  1985, fixed time shall not be computed at less than zero.
13    The Department shall not make any alterations of  regulations
14    which  would  reduce  any component of the Medicaid rate to a
15    level below what that component would have been utilizing  in
16    the rate effective on July 1, 1984.
17        (2)  Shall take into account the actual costs incurred by
18    facilities  in  providing  services for recipients of skilled
19    nursing and intermediate  care  services  under  the  medical
20    assistance program.
21        (3)  Shall    take   into   account   the   medical   and
22    psycho-social characteristics and needs of the patients.
23        (4)  Shall take into account the actual costs incurred by
24    facilities in meeting, licensing and certification  standards
25    imposed  and  prescribed by the State of Illinois, any of its
26    political subdivisions or municipalities and  by  the  United
27    States  Department  of Health, Education and Welfare pursuant
28    to Title XIX of the Social Security Act.
29        The  Department  of  Public  Aid  shall  develop  precise
30    standards for payments to reimburse  nursing  facilities  for
31    any  utilization  of appropriate rehabilitative personnel for
32    the provision of rehabilitative services which is  authorized
33    by  federal regulations, including reimbursement for services
34    provided by qualified therapists or qualified assistants, and
                            -11-           LRB9011519EGfgam04
 1    which is in accordance with accepted professional  practices.
 2    Reimbursement  also  may  be  made  for  utilization of other
 3    supportive personnel under appropriate supervision.
 4    (Source: P.A. 89-21, eff. 7-1-95; 89-499, eff. 6-28-96; 90-9,
 5    eff. 7-1-97.)
 6        (305 ILCS 5/12-4.34)
 7        (Section scheduled to be repealed on August 31, 1998)
 8        Sec. 12-4.34.  Naturalization and nutrition  Services  to
 9    noncitizens.
10        (a)  Subject  to  specific appropriation for this purpose
11    and notwithstanding Sections 1-11 and 3-1 of this  Code,  the
12    Department   of  Human  Services  is  authorized  to  provide
13    naturalization services to legal  immigrants,  including  but
14    not  limited  to  naturalization  and  nutrition services and
15    financial assistance.  The nature of these services,  payment
16    levels,  and  eligibility  conditions  shall be determined by
17    rule.
18        (b)  Subject to specific appropriation for this  purpose,
19    the  Department  of  Human  Services is authorized to provide
20    nutrition services to noncitizens who are 65 years of age  or
21    older,  under  18  years of age, or disabled, and who were in
22    the United States prior  to  August  22,  1996  and  are  not
23    eligible  for  the  federal  food  stamp program due to their
24    noncitizen status.  The payment levels and other  eligibility
25    conditions for these services shall be determined by rule.
26        The  Illinois  Department  is  authorized  to  lower  the
27    payment levels established under this subsection or take such
28    other  actions  during  the  fiscal  year as are necessary to
29    ensure that payments under this subsection do not exceed  the
30    amounts  appropriated for this purpose.  These changes may be
31    accomplished by emergency rule  under  Section  5-45  of  the
32    Illinois   Administrative  Procedure  Act,  except  that  the
33    limitation on the number  of  emergency  rules  that  may  be
                            -12-           LRB9011519EGfgam04
 1    adopted in a 24-month period shall not apply.
 2        (c)  This Section is repealed on August 31, 1999 1998.
 3    (Source: P.A. 90-564, eff. 12-22-97.)
 4        (305 ILCS 5/12-4.35 new)
 5        Sec. 12-4.35. Medical services for certain noncitizens.
 6        (a)  Subject  to specific appropriation for this purpose,
 7    and notwithstanding Section 1-11  of  this  Code  or  Section
 8    20(a)  of  the  Children's  Health Insurance Program Act, the
 9    Department of Public Aid  may  provide  medical  services  to
10    noncitizens who have not yet attained 19 years of age and who
11    are  not  eligible  for medical assistance under Article V of
12    this Code or under the Children's  Health  Insurance  Program
13    created by the Children's Health Insurance Program Act due to
14    their  not  meeting  the  otherwise  applicable provisions of
15    Section 1-11 of this Code or Section 20(a) of the  Children's
16    Health   Insurance   Program   Act.    The  medical  services
17    available, standards for eligibility, and other conditions of
18    participation under this Section shall be established by rule
19    by the Department; however, any such rule shall be  at  least
20    as  restrictive  as  the  rules  for medical assistance under
21    Article V of this Code or  the  Children's  Health  Insurance
22    Program  created  by  the Children's Health Insurance Program
23    Act.
24        (b)  The Department is authorized  to  take  any  action,
25    including   without   limitation   cessation  of  enrollment,
26    reduction  of  available  medical  services,   and   changing
27    standards  for  eligibility,  that is deemed necessary by the
28    Department during a State fiscal year to assure that payments
29    under this Section do not exceed the amounts appropriated for
30    this purpose.
31        (c)  In the event that the appropriation  in  any  fiscal
32    year  for  the Children's Health Insurance Program created by
33    the Children's Health Insurance Program Act is determined  by
                            -13-           LRB9011519EGfgam04
 1    the  Department  to be insufficient to continue enrollment of
 2    otherwise eligible children under that  Program  during  that
 3    fiscal  year,  the  Department  is  authorized  to  use funds
 4    appropriated for the purposes of this Section  to  fund  that
 5    Program  and  to  take any other action necessary to continue
 6    the  operation  of  that  Program.   Furthermore,   continued
 7    enrollment of individuals into the program created under this
 8    Section  in  any  fiscal  year  is  contingent upon continued
 9    enrollment  of  individuals  into   the   Children's   Health
10    Insurance Program during that fiscal year.
11        (d)  The  General  Assembly  finds  that  the adoption of
12    rules to meet the purposes of subsections (a), (b),  and  (c)
13    is  an  emergency  and  necessary  for  the  public interest,
14    safety, and welfare.  The Department  may  adopt  such  rules
15    through  the  use  of emergency rulemaking in accordance with
16    Section 5-45 of the Illinois  Administrative  Procedure  Act,
17    except  that  the limitation on the number of emergency rules
18    that may be adopted in a 24-month period shall not apply.
19        (305 ILCS 5/14-8) (from Ch. 23, par. 14-8)
20        Sec. 14-8.  Disbursements to Hospitals.
21        (a)  For inpatient  hospital  services  rendered  on  and
22    after  September  1,  1991,  the  Illinois  Department  shall
23    reimburse  hospitals  for  inpatient services at an inpatient
24    payment rate calculated for  each  hospital  based  upon  the
25    Medicare  Prospective Payment System as set forth in Sections
26    1886(b), (d), (g), and (h) of  the  federal  Social  Security
27    Act,   and   the   regulations,   policies,   and  procedures
28    promulgated thereunder, except as modified by  this  Section.
29    Payment  rates for inpatient hospital services rendered on or
30    after September 1, 1991 and on or before September  30,  1992
31    shall  be  calculated  using the Medicare Prospective Payment
32    rates in effect on September  1,  1991.   Payment  rates  for
33    inpatient  hospital  services rendered on or after October 1,
                            -14-           LRB9011519EGfgam04
 1    1992 and on or before March  31,  1994  shall  be  calculated
 2    using  the  Medicare  Prospective  Payment rates in effect on
 3    September 1, 1992.   Payment  rates  for  inpatient  hospital
 4    services  rendered  on  or  after  April  1,  1994  shall  be
 5    calculated  using  the  Medicare  Prospective  Payment  rates
 6    (including  the  Medicare  grouping methodology and weighting
 7    factors  as  adjusted  pursuant  to  paragraph  (1)  of  this
 8    subsection)  in   effect  90  days  prior  to  the  date   of
 9    admission.   For  services rendered on or after July 1, 1995,
10    the  reimbursement   methodology   implemented   under   this
11    subsection  shall  not  include  those  costs  referred to in
12    Sections 1886(d)(5)(B) and 1886(h)  of  the  Social  Security
13    Act.  The  additional  payment amounts required under Section
14    1886(d)(5)(F) of  the  Social  Security  Act,  for  hospitals
15    serving  a  disproportionate  share of low-income or indigent
16    patients, are not required under this Section.  For  hospital
17    inpatient  services  rendered  on  or after July 1, 1995, the
18    Illinois  Department  shall  reimburse  hospitals  using  the
19    relative  weighting  factors  and  the  base  payment   rates
20    calculated  for each hospital that were in effect on June 30,
21    1995, less the  portion  of  such  rates  attributed  by  the
22    Illinois Department to the cost of medical education.
23             (1)  The weighting factors established under Section
24        1886(d)(4)  of  the Social Security Act shall not be used
25        in  the  reimbursement  system  established  under   this
26        Section.  Rather, the Illinois Department shall establish
27        by  rule  Medicaid  weighting  factors  to be used in the
28        reimbursement system established under this Section.
29             (2)  The Illinois Department shall  define  by  rule
30        those hospitals or distinct parts of hospitals that shall
31        be exempt from the reimbursement system established under
32        this  Section.   In defining such hospitals, the Illinois
33        Department shall take into consideration those  hospitals
34        exempt from the Medicare Prospective Payment System as of
                            -15-           LRB9011519EGfgam04
 1        September 1, 1991.  For hospitals defined as exempt under
 2        this  subsection,  the  Illinois Department shall by rule
 3        establish a reimbursement system for payment of inpatient
 4        hospital services rendered  on  and  after  September  1,
 5        1991.  For all hospitals that are children's hospitals as
 6        defined in Section 5-5.02 of this Code, the reimbursement
 7        methodology  shall,  through  June  30,  1992, net of all
 8        applicable fees, at least equal each children's  hospital
 9        1990  ICARE payment rates, indexed to the current year by
10        application of the DRI hospital cost index from  1989  to
11        the  year  in  which payments are made.  Excepting county
12        providers  as  defined  in  Article  XV  of  this   Code,
13        hospitals  licensed  under  the  University  of  Illinois
14        Hospital  Act,  and facilities operated by the Department
15        of Mental Health and Developmental Disabilities  (or  its
16        successor, the Department of Human Services) for hospital
17        inpatient services rendered on or after July 1, 1995, the
18        Illinois Department shall reimburse children's hospitals,
19        as  defined  in  89  Illinois Administrative Code Section
20        149.50(c)(3), at the rates in effect on  June  30,  1995,
21        and  shall  reimburse all other hospitals at the rates in
22        effect on June 30, 1995, less the portion of  such  rates
23        attributed  by  the  Illinois  Department  to the cost of
24        medical  education.  For  inpatient   hospital   services
25        provided  on  or  after  August  1,  1998,  the  Illinois
26        Department may establish by rule a means of adjusting the
27        rates  of children's hospitals, as defined in 89 Illinois
28        Administrative Code Section 149.50(c)(3),  that  did  not
29        meet  that  definition on June 30, 1995, in order for the
30        inpatient hospital rates of such hospitals to  take  into
31        account  the  average  inpatient  hospital rates of those
32        children's hospitals that  did  meet  the  definition  of
33        children's hospitals on June 30, 1995.
34             (3)  (Blank)
                            -16-           LRB9011519EGfgam04
 1             (4)  Notwithstanding  any  other  provision  of this
 2        Section, hospitals  that  on  August  31,  1991,  have  a
 3        contract  with  the Illinois Department under Section 3-4
 4        of the Illinois Health Finance Reform Act  may  elect  to
 5        continue  to  be  reimbursed  at  rates  stated  in  such
 6        contracts for general and specialty care.
 7             (5)  In  addition  to  any  payments made under this
 8        subsection (a), the Illinois Department  shall  make  the
 9        adjustment  payments  required  by Section 5-5.02 of this
10        Code;  provided,  that  in  the  case  of  any   hospital
11        reimbursed  under  a  per  case methodology, the Illinois
12        Department shall add an amount equal to  the  product  of
13        the  hospital's  average  length  of  stay, less one day,
14        multiplied  by  20,  for  inpatient   hospital   services
15        rendered  on  or after September 1, 1991 and on or before
16        September 30, 1992.
17        (b)  (Blank)
18        (b-5)  Excepting county providers as defined  in  Article
19    XV  of  this Code, hospitals licensed under the University of
20    Illinois  Hospital  Act,  and  facilities  operated  by   the
21    Illinois   Department  of  Mental  Health  and  Developmental
22    Disabilities (or  its  successor,  the  Department  of  Human
23    Services),  for outpatient services rendered on or after July
24    1, 1995 and before July  1,  1998,  the  Illinois  Department
25    shall  reimburse  children's  hospitals,  as  defined  in the
26    Illinois Administrative Code  Section  149.50(c)(3),  at  the
27    rates  in  effect on June 30, 1995, less that portion of such
28    rates attributed by the Illinois Department to the outpatient
29    indigent volume adjustment  and  shall  reimburse  all  other
30    hospitals  at  the rates in effect on June 30, 1995, less the
31    portions of such rates attributed by the Illinois  Department
32    to  the  cost  of  medical  education  and  attributed by the
33    Illinois  Department  to  the  outpatient   indigent   volume
34    adjustment.   For  outpatient  services  provided on or after
                            -17-           LRB9011519EGfgam04
 1    July 1, 1998, reimbursement rates  shall  be  established  by
 2    rule.
 3        (c)  In  addition  to any other payments under this Code,
 4    the   Illinois   Department   shall   develop   a    hospital
 5    disproportionate   share   reimbursement   methodology  that,
 6    effective July 1, 1991, through  September  30,  1992,  shall
 7    reimburse  hospitals  sufficiently  to  expend the fee monies
 8    described in subsection (b) of Section 14-3 of this Code  and
 9    the   federal   matching   funds  received  by  the  Illinois
10    Department as a result of expenditures made by  the  Illinois
11    Department  as  required  by  this subsection (c) and Section
12    14-2 that are attributable to fee  monies  deposited  in  the
13    Fund,  less  amounts  applied  to  adjustment  payments under
14    Section 5-5.02.
15        (d)  Critical Care Access Payments.
16             (1)  In addition to any other  payments  made  under
17        this  Code,  the  Illinois  Department  shall  develop  a
18        reimbursement  methodology  that shall reimburse Critical
19        Care Access Hospitals for the specialized  services  that
20        qualify  them  as  Critical  Care  Access  Hospitals.  No
21        adjustment  payments  shall be made under this subsection
22        on or after July 1, 1995.
23             (2)  "Critical Care Access Hospitals" includes,  but
24        is  not  limited  to, hospitals that meet at least one of
25        the following criteria:
26                  (A)  Hospitals    located    outside    of    a
27             metropolitan statistical area that are designated as
28             Level  II  Perinatal  Centers  and  that  provide  a
29             disproportionate  share  of  perinatal  services  to
30             recipients; or
31                  (B)  Hospitals that are designated as  Level  I
32             Trauma  Centers  (adult  or  pediatric)  and certain
33             Level  II  Trauma  Centers  as  determined  by   the
34             Illinois Department; or
                            -18-           LRB9011519EGfgam04
 1                  (C)  Hospitals    located    outside    of    a
 2             metropolitan  statistical  area  and  that provide a
 3             disproportionate share of  obstetrical  services  to
 4             recipients.
 5        (e)  Inpatient  high  volume  adjustment.   For  hospital
 6    inpatient  services, effective with rate periods beginning on
 7    or after October 1, 1993,  in  addition  to  rates  paid  for
 8    inpatient  services  by the Illinois Department, the Illinois
 9    Department  shall  make  adjustment  payments  for  inpatient
10    services furnished by Medicaid high  volume  hospitals.   The
11    Illinois  Department  shall  establish  by  rule criteria for
12    qualifying as a  Medicaid  high  volume  hospital  and  shall
13    establish by rule a reimbursement methodology for calculating
14    these  adjustment payments to Medicaid high volume hospitals.
15    No adjustment payment shall be made under this subsection for
16    services rendered on or after July 1, 1995.
17        (f)  The Illinois Department  shall  modify  its  current
18    rules  governing  adjustment  payments  for  targeted access,
19    critical care access,  and  uncompensated  care  to  classify
20    those   adjustment   payments   as   not  being  payments  to
21    disproportionate share  hospitals  under  Title  XIX  of  the
22    federal   Social  Security  Act.  Rules  adopted  under  this
23    subsection shall not be effective with  respect  to  services
24    rendered  on  or after July 1, 1995.  The Illinois Department
25    has no obligation to adopt or implement any rules or make any
26    payments under this subsection for services  rendered  on  or
27    after July 1, 1995.
28        (f-5)  The  State  recognizes that adjustment payments to
29    hospitals providing certain  services  or  incurring  certain
30    costs  may  be necessary to assure that recipients of medical
31    assistance  have  adequate  access   to   necessary   medical
32    services.   These  adjustments  include payments for teaching
33    costs  and  uncompensated  care,  trauma   center   payments,
34    rehabilitation  hospital payments, perinatal center payments,
                            -19-           LRB9011519EGfgam04
 1    obstetrical care payments, targeted access payments, Medicaid
 2    high  volume  payments,  and   outpatient   indigent   volume
 3    payments.    On   or  before  April  1,  1995,  the  Illinois
 4    Department  shall   issue   recommendations   regarding   (i)
 5    reimbursement  mechanisms  or  adjustment payments to reflect
 6    these costs and services,  including  methods  by  which  the
 7    payments  may  be  calculated  and  the  method  by which the
 8    payments may be financed, and (ii)  reimbursement  mechanisms
 9    or  adjustment  payments  to  reflect  costs  and services of
10    federally qualified health centers with respect to recipients
11    of medical assistance.
12        (g)  If one or more hospitals  file  suit  in  any  court
13    challenging  any  part  of  this  Article  XIV,  payments  to
14    hospitals  under  this  Article XIV shall be made only to the
15    extent that sufficient monies are available in the  Fund  and
16    only  to  the  extent  that  any  monies  in the Fund are not
17    prohibited from disbursement under any order of the court.
18        (h)  Payments   under   the   disbursement    methodology
19    described  in  this  Section  are  subject to approval by the
20    federal government in an appropriate State plan amendment.
21        (i)  The  Illinois  Department  may  by  rule   establish
22    criteria   for   and  develop  methodologies  for  adjustment
23    payments to hospitals participating under this Article.
24    (Source: P.A.  89-21,  eff.  7-1-95;  89-499,  eff.  6-28-96;
25    89-507,   eff.   7-1-97;   90-9,  eff.  7-1-97;  90-14,  eff.
26    7-1-97.)".

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