Replaces everything after the enacting clause. Creates the FY07 Cost of Doing Business Adjustment Act. Provides that retroactive to July 1, 2006, a 3% increase shall be included in all purchase of care contracts and grant agreements paid under specified line items in the fiscal year 2007 State budget for the Department of Human Services, including early intervention, family case management, and domestic violence. Effective immediately.
Senate Floor Amendment No. 4 Deletes everything after the enacting clause and re-inserts provisions similar to those of Senate Amendment No. 1 with these changes: applies to the fiscal year 2007 State budgets for the Department of Human Services and the Department of Healthcare and Family Services (instead of the Department of Human Services only); provides that the 3% increase shall be included not later than 2 weeks after the effective date of the Act (instead of retroactive to July 1, 2006); provides that the 3% increase shall also be included in provider agreements paid under the applicable line items; changes "early intervention" to "early intervention therapy services and service coordination" and changes "family planning" to "family planning and contraceptive health services"; and adds Centers for Independent Living to the line items to which the Act applies. Effective immediately.
Fiscal Note (Dept. of Human Services)
The FY 2007 cost would be approximately half the $6.8 million, or $3.4 million, with an effective date of January 1, 2007. The bill authorizes the 3% increase two weeks after the effective date of the act.
Fiscal Note (Dept. of Healthcare & Family Services)
The estimated fiscal impact is $1.5 million annually for a 3% rate increase to Medicaid therapies for 0-3 year olds. This amount is the cost of the increase for all therapies since Early Intervention and Medicaid need to be treated the same.