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Full Text of SB0742  93rd General Assembly

SB0742enr 93rd General Assembly


093_SB0742enr

 
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 1        AN ACT concerning budget implementation.

 2        Be it enacted by the People of  the  State  of  Illinois,
 3    represented in the General Assembly:

 4                             ARTICLE 1.

 5        Section  1-1.  Short  title. This Act may be cited as the
 6    FY2004 Budget Implementation (Health and Human Services) Act.

 7        Section 1-5.  Purpose. It is the purpose of this  Act  to
 8    make  changes  relating to health and human services that are
 9    necessary to implement the State's FY2004 budget.

10                             ARTICLE 3.

11        Section 3-5.  The Illinois Administrative  Procedure  Act
12    is amended by changing Section 5-45 as follows:

13        (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
14        Sec. 5-45.  Emergency rulemaking.
15        (a)  "Emergency"  means  the  existence  of any situation
16    that any agency finds reasonably constitutes a threat to  the
17    public interest, safety, or welfare.
18        (b)  If  any  agency  finds that an emergency exists that
19    requires adoption of a rule upon fewer days than is  required
20    by  Section  5-40  and states in writing its reasons for that
21    finding, the agency may adopt an emergency rule without prior
22    notice  or  hearing  upon  filing  a  notice   of   emergency
23    rulemaking  with  the  Secretary of State under Section 5-70.
24    The notice shall include the text of the emergency  rule  and
25    shall  be published in the Illinois Register.  Consent orders
26    or other court orders adopting settlements negotiated  by  an
27    agency  may  be  adopted  under  this  Section.   Subject  to
 
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 1    applicable   constitutional   or   statutory  provisions,  an
 2    emergency rule  becomes  effective  immediately  upon  filing
 3    under  Section  5-65  or  at a stated date less than 10  days
 4    thereafter.  The agency's finding  and  a  statement  of  the
 5    specific  reasons  for  the  finding  shall be filed with the
 6    rule.  The  agency  shall  take  reasonable  and  appropriate
 7    measures to make emergency rules known to the persons who may
 8    be affected by them.
 9        (c)  An  emergency  rule may be effective for a period of
10    not longer than 150 days, but the agency's authority to adopt
11    an identical rule under Section 5-40 is  not  precluded.   No
12    emergency  rule may be adopted more than once in any 24 month
13    period,  except  that  this  limitation  on  the  number   of
14    emergency rules that may be adopted in a 24 month period does
15    not  apply  to (i) emergency rules that make additions to and
16    deletions from the Drug Manual under Section  5-5.16  of  the
17    Illinois  Public Aid Code or the generic drug formulary under
18    Section 3.14 of the Illinois Food, Drug and Cosmetic  Act  or
19    (ii)  emergency  rules adopted by the Pollution Control Board
20    before July 1, 1997 to implement portions  of  the  Livestock
21    Management  Facilities  Act.   Two  or  more  emergency rules
22    having substantially the same purpose  and  effect  shall  be
23    deemed to be a single rule for purposes of this Section.
24        (d)  In  order  to provide for the expeditious and timely
25    implementation  of  the  State's  fiscal  year  1999  budget,
26    emergency rules to implement  any  provision  of  Public  Act
27    90-587  or  90-588  or any other budget initiative for fiscal
28    year 1999 may be adopted in accordance with this  Section  by
29    the  agency  charged  with  administering  that  provision or
30    initiative,  except  that  the  24-month  limitation  on  the
31    adoption of emergency rules and the  provisions  of  Sections
32    5-115  and  5-125  do  not  apply to rules adopted under this
33    subsection (d).  The adoption of emergency  rules  authorized
34    by  this  subsection  (d) shall be deemed to be necessary for
 
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 1    the public interest, safety, and welfare.
 2        (e)  In order to provide for the expeditious  and  timely
 3    implementation  of  the  State's  fiscal  year  2000  budget,
 4    emergency rules to implement any provision of this amendatory
 5    Act  of  the  91st  General  Assembly  or  any  other  budget
 6    initiative  for fiscal year 2000 may be adopted in accordance
 7    with this Section by the agency  charged  with  administering
 8    that  provision  or  initiative,  except  that  the  24-month
 9    limitation  on  the  adoption  of  emergency  rules  and  the
10    provisions  of Sections 5-115 and 5-125 do not apply to rules
11    adopted under this subsection (e).  The adoption of emergency
12    rules authorized by this subsection (e) shall be deemed to be
13    necessary for the public interest, safety, and welfare.
14        (f)  In order to provide for the expeditious  and  timely
15    implementation  of  the  State's  fiscal  year  2001  budget,
16    emergency rules to implement any provision of this amendatory
17    Act  of  the  91st  General  Assembly  or  any  other  budget
18    initiative  for fiscal year 2001 may be adopted in accordance
19    with this Section by the agency  charged  with  administering
20    that  provision  or  initiative,  except  that  the  24-month
21    limitation  on  the  adoption  of  emergency  rules  and  the
22    provisions  of Sections 5-115 and 5-125 do not apply to rules
23    adopted under this subsection (f).  The adoption of emergency
24    rules authorized by this subsection (f) shall be deemed to be
25    necessary for the public interest, safety, and welfare.
26        (g)  In order to provide for the expeditious  and  timely
27    implementation  of  the  State's  fiscal  year  2002  budget,
28    emergency rules to implement any provision of this amendatory
29    Act  of  the  92nd  General  Assembly  or  any  other  budget
30    initiative  for fiscal year 2002 may be adopted in accordance
31    with this Section by the agency  charged  with  administering
32    that  provision  or  initiative,  except  that  the  24-month
33    limitation  on  the  adoption  of  emergency  rules  and  the
34    provisions  of Sections 5-115 and 5-125 do not apply to rules
 
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 1    adopted under this subsection (g).  The adoption of emergency
 2    rules authorized by this subsection (g) shall be deemed to be
 3    necessary for the public interest, safety, and welfare.
 4        (h)  In order to provide for the expeditious  and  timely
 5    implementation  of  the  State's  fiscal  year  2003  budget,
 6    emergency rules to implement any provision of this amendatory
 7    Act  of  the  92nd  General  Assembly  or  any  other  budget
 8    initiative  for fiscal year 2003 may be adopted in accordance
 9    with this Section by the agency  charged  with  administering
10    that  provision  or  initiative,  except  that  the  24-month
11    limitation  on  the  adoption  of  emergency  rules  and  the
12    provisions  of Sections 5-115 and 5-125 do not apply to rules
13    adopted under this subsection (h).  The adoption of emergency
14    rules authorized by this subsection (h) shall be deemed to be
15    necessary for the public interest, safety, and welfare.
16        (i)  In order to provide for the expeditious  and  timely
17    implementation  of  the  State's  fiscal  year  2004  budget,
18    emergency rules to implement any provision of this amendatory
19    Act  of  the  93rd  General  Assembly  or  any  other  budget
20    initiative  for fiscal year 2004 may be adopted in accordance
21    with this Section by the agency  charged  with  administering
22    that  provision  or  initiative,  except  that  the  24-month
23    limitation  on  the  adoption  of  emergency  rules  and  the
24    provisions  of Sections 5-115 and 5-125 do not apply to rules
25    adopted under this subsection (i).  The adoption of emergency
26    rules authorized by this subsection (i) shall be deemed to be
27    necessary for the public interest, safety, and welfare.
28    (Source: P.A.  91-24,  eff.  7-1-99;  91-357,  eff.  7-29-99;
29    91-712,  eff.  7-1-00;  92-10,  eff.  6-11-01;  92-597,  eff.
30    6-28-02.)

31                             ARTICLE 5.

32        Section   5-5.  The  State  Finance  Act  is  amended  by
 
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 1    changing Sections 6z-30 and 6z-58 as follows:

 2        (30 ILCS 105/6z-30)
 3        Sec. 6z-30.  University  of  Illinois  Hospital  Services
 4    Fund.
 5        (a)  The University of Illinois Hospital Services Fund is
 6    created  as  a  special  fund  in  the  State  Treasury.  The
 7    following moneys shall be deposited into the Fund:
 8             (1)  As soon as possible after the beginning of each
 9        fiscal year (starting in fiscal year  1995),  and  in  no
10        event  later  than July 30, the State Comptroller and the
11        State Treasurer shall automatically transfer  $44,700,000
12        from  the  General  Revenue  Fund  to  the  University of
13        Illinois Hospital Services Fund.
14             (2)  All intergovernmental transfer payments to  the
15        Illinois  Department  of  Public Aid by the University of
16        Illinois Hospital made pursuant to  an  intergovernmental
17        agreement  under subsection (b) or (c) of Section 5A-3 of
18        the Illinois Public Aid Code.
19             (3)  All federal  matching  funds  received  by  the
20        Illinois   Department  of  Public  Aid  as  a  result  of
21        expenditures made by the  Illinois  Department  that  are
22        attributable to moneys that were deposited in the Fund.
23        (b)  Moneys  in  the  fund  may  be  used by the Illinois
24    Department  of  Public  Aid,  subject  to  appropriation,  to
25    reimburse the University of Illinois  Hospital  for  hospital
26    and  pharmacy  services.   The  fund may also be used to make
27    monthly transfers to the General Revenue Fund as provided  in
28    subsection (c).
29        (c)  The  State  Comptroller  and  State  Treasurer shall
30    automatically transfer on the last day of each  month  except
31    June,  beginning  August  31,  1994,  from  the University of
32    Illinois Hospital Services Fund to the General Revenue  Fund,
33    an  amount  determined and certified to the State Comptroller
 
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 1    by the Director of Public Aid, equal to the amount  by  which
 2    the  balance  in  the  Fund  exceeds  the amount necessary to
 3    ensure  timely  payments  to  the  University   of   Illinois
 4    Hospital.
 5        On  June  30, 1995 and each June 30 thereafter, the State
 6    Comptroller and State Treasurer shall automatically  transfer
 7    the  entire  balance  in  the University of Illinois Hospital
 8    Services Fund to the General Revenue Fund.
 9    (Source: P.A. 88-554, eff. 7-26-94; 89-499, eff. 6-28-96.)

10        (30 ILCS 105/6z-58)
11        Sec. 6z-58. The Family Care Fund.
12        (a)  There is created in the State  treasury  the  Family
13    Care  Fund.  Interest earned by the Fund shall be credited to
14    the Fund.
15        (b)  The Fund is  created  solely  for  the  purposes  of
16    receiving,  investing,  and distributing moneys in accordance
17    with  an  approved  waiver  under  the  Social  Security  Act
18    resulting from the Family Care waiver  request  submitted  by
19    the  Illinois  Department of Public Aid on February 15, 2002.
20    The Fund shall consist of:
21             (1)  All  federal  financial  participation   moneys
22        received  pursuant  to  the  approved  waiver, except for
23        moneys received  pursuant  to  expenditures  for  medical
24        services  by  the Department of Public Aid from any other
25        fund; and
26             (2)  All other moneys received by the Fund from  any
27        source, including interest thereon.
28        (c)  Subject  to  appropriation,  the  moneys in the Fund
29    shall be disbursed for reimbursement of medical services  and
30    other  costs  associated with persons receiving such services
31    under the waiver due  to  their  relationship  with  children
32    receiving  medical  services  pursuant  to  Article  V of the
33    Illinois Public Aid Code or the Children's  Health  Insurance
 
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 1    Program Act.
 2    (Source: P.A. 92-600, eff. 6-28-02.)

 3                             ARTICLE 15.

 4        Section 15-5.  The Illinois Public Aid Code is amended by
 5    changing  Sections 5-2, 5-5.4, 10-26, 12-8.1, 12-9, 14-8, and
 6    15-5 and adding Section 5-5.4b as follows:

 7        (305 ILCS 5/5-2) (from Ch. 23, par. 5-2)
 8        Sec.  5-2.  Classes   of   Persons   Eligible.    Medical
 9    assistance  under  this  Article shall be available to any of
10    the following classes of persons in respect to  whom  a  plan
11    for  coverage  has  been  submitted  to  the  Governor by the
12    Illinois Department and approved by him:
13        1.  Recipients of basic maintenance grants under Articles
14    III and IV.
15        2.  Persons  otherwise  eligible  for  basic  maintenance
16    under Articles III and IV but who fail to qualify  thereunder
17    on  the  basis  of need, and who have insufficient income and
18    resources to  meet  the  costs  of  necessary  medical  care,
19    including but not limited to the following:
20             (a)  All   persons   otherwise  eligible  for  basic
21        maintenance under Article III but  who  fail  to  qualify
22        under  that  Article  on  the  basis of need and who meet
23        either of the following requirements:
24                  (i)  their  income,  as   determined   by   the
25             Illinois  Department  in accordance with any federal
26             requirements, is equal to or less than 70% in fiscal
27             year 2001, equal to or less than 85% in fiscal  year
28             2002  and  until  a  date  to  be  determined by the
29             Department by rule, and equal to or less  than  100%
30             beginning  on  the date determined by the Department
31             by rule, of  the  nonfarm  income  official  poverty
 
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 1             line, as defined by the federal Office of Management
 2             and  Budget  and revised annually in accordance with
 3             Section 673(2) of the Omnibus Budget  Reconciliation
 4             Act  of  1981,  applicable  to  families of the same
 5             size; or
 6                  (ii)  their  income,  after  the  deduction  of
 7             costs incurred for medical care and for other  types
 8             of  remedial  care,  is equal to or less than 70% in
 9             fiscal year 2001, equal  to  or  less  than  85%  in
10             fiscal  year  2002 and until a date to be determined
11             by the Department by rule, and equal to or less than
12             100%  beginning  on  the  date  determined  by   the
13             Department  by  rule, of the nonfarm income official
14             poverty  line,  as  defined  in  item  (i)  of  this
15             subparagraph (a).
16             (b)  All persons who would  be  determined  eligible
17        for   such   basic   maintenance   under  Article  IV  by
18        disregarding  the  maximum  earned  income  permitted  by
19        federal law.
20        3.  Persons who would otherwise qualify for  Aid  to  the
21    Medically Indigent under Article VII.
22        4.  Persons  not  eligible  under  any  of  the preceding
23    paragraphs who fall sick, are injured,  or  die,  not  having
24    sufficient  money,  property  or  other resources to meet the
25    costs  of  necessary  medical  care  or  funeral  and  burial
26    expenses.
27        5. (a)  Women  during  pregnancy,  after  the   fact   of
28        pregnancy  has  been determined by medical diagnosis, and
29        during the 60-day period beginning on the last day of the
30        pregnancy, together with their infants and children  born
31        after  September 30, 1983, whose income and resources are
32        insufficient to meet the costs of necessary medical  care
33        to  the  maximum  extent  possible under Title XIX of the
34        Federal Social Security Act.
 
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 1             (b)  The Illinois Department and the Governor  shall
 2        provide a plan for coverage of the persons eligible under
 3        paragraph 5(a) by April 1, 1990.  Such plan shall provide
 4        ambulatory  prenatal  care  to  pregnant  women  during a
 5        presumptive eligibility period and  establish  an  income
 6        eligibility standard that is equal to 133% of the nonfarm
 7        income  official  poverty line, as defined by the federal
 8        Office of Management and Budget and revised  annually  in
 9        accordance  with  Section  673(2)  of  the Omnibus Budget
10        Reconciliation Act of 1981, applicable to families of the
11        same size, provided that costs incurred for medical  care
12        are  not  taken  into  account in determining such income
13        eligibility.
14             (c)  The   Illinois   Department   may   conduct   a
15        demonstration in at least one county  that  will  provide
16        medical assistance to pregnant women, together with their
17        infants  and  children  up  to one year of age, where the
18        income eligibility standard is set  up  to  185%  of  the
19        nonfarm  income  official poverty line, as defined by the
20        federal Office of Management  and  Budget.  The  Illinois
21        Department  shall seek and obtain necessary authorization
22        provided  under  federal  law   to   implement   such   a
23        demonstration.  Such demonstration may establish resource
24        standards  that  are  not  more  restrictive  than  those
25        established under Article IV of this Code.
26        6.  Persons  under  the  age of 18 who fail to qualify as
27    dependent under Article IV and who have  insufficient  income
28    and  resources to meet the costs of necessary medical care to
29    the maximum extent permitted under Title XIX of  the  Federal
30    Social Security Act.
31        7.  Persons  who  are under 21 18 years of age or younger
32    and would qualify as disabled as defined  under  the  Federal
33    Supplemental   Security   Income  Program,  provided  medical
34    service for  such  persons  would  be  eligible  for  Federal
 
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 1    Financial Participation, and provided the Illinois Department
 2    determines that:
 3             (a)  the person requires a level of care provided by
 4        a  hospital,  skilled  nursing  facility, or intermediate
 5        care facility, as determined by a physician  licensed  to
 6        practice medicine in all its branches;
 7             (b)  it  is appropriate to provide such care outside
 8        of an institution, as determined by a physician  licensed
 9        to practice medicine in all its branches;
10             (c)  the  estimated  amount  which would be expended
11        for care outside the institution is not greater than  the
12        estimated   amount   which   would   be  expended  in  an
13        institution.
14        8.  Persons who become ineligible for  basic  maintenance
15    assistance   under  Article  IV  of  this  Code  in  programs
16    administered by the Illinois  Department  due  to  employment
17    earnings  and persons in assistance units comprised of adults
18    and children who  become  ineligible  for  basic  maintenance
19    assistance  under  Article  VI of this Code due to employment
20    earnings.  The plan for coverage for this  class  of  persons
21    shall:
22             (a)  extend  the  medical assistance coverage for up
23        to 12 months following termination of  basic  maintenance
24        assistance; and
25             (b)  offer  persons  who  have  initially received 6
26        months of the coverage provided in paragraph  (a)  above,
27        the  option  of  receiving  an  additional  6  months  of
28        coverage, subject to the following:
29                  (i)  such   coverage   shall   be  pursuant  to
30             provisions of the federal Social Security Act;
31                  (ii)  such coverage shall include all  services
32             covered  while  the  person  was  eligible for basic
33             maintenance assistance;
34                  (iii)  no premium shall  be  charged  for  such
 
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 1             coverage; and
 2                  (iv)  such  coverage  shall be suspended in the
 3             event of a person's failure without  good  cause  to
 4             file  in  a timely fashion reports required for this
 5             coverage under the Social Security Act and  coverage
 6             shall  be reinstated upon the filing of such reports
 7             if the person remains otherwise eligible.
 8        9.  Persons  with  acquired   immunodeficiency   syndrome
 9    (AIDS)  or  with AIDS-related conditions with respect to whom
10    there  has  been  a  determination  that  but  for  home   or
11    community-based  services  such individuals would require the
12    level of care provided  in  an  inpatient  hospital,  skilled
13    nursing  facility  or  intermediate care facility the cost of
14    which is reimbursed under this Article.  Assistance shall  be
15    provided  to  such  persons  to  the maximum extent permitted
16    under Title XIX of the Federal Social Security Act.
17        10.  Participants  in  the   long-term   care   insurance
18    partnership  program  established  under  the Partnership for
19    Long-Term Care Act who meet the qualifications for protection
20    of resources described in Section 25 of that Act.
21        11.  Persons  with  disabilities  who  are  employed  and
22    eligible    for     Medicaid,     pursuant     to     Section
23    1902(a)(10)(A)(ii)(xv)   of   the  Social  Security  Act,  as
24    provided by the Illinois Department by rule.
25        12.  Subject  to  federal  approval,  persons   who   are
26    eligible  for  medical  assistance  coverage under applicable
27    provisions of the federal Social Security Act and the federal
28    Breast and Cervical Cancer Prevention and  Treatment  Act  of
29    2000.  Those eligible persons are defined to include, but not
30    be limited to, the following persons:
31             (1)  persons  who  have  been screened for breast or
32        cervical  cancer  under  the  U.S.  Centers  for  Disease
33        Control and Prevention Breast and Cervical Cancer Program
34        established under Title XV of the federal  Public  Health
 
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 1        Services  Act  in  accordance  with  the  requirements of
 2        Section 1504 of that Act as administered by the  Illinois
 3        Department of Public Health; and
 4             (2)  persons   whose   screenings  under  the  above
 5        program  were  funded  in  whole  or  in  part  by  funds
 6        appropriated to the Illinois Department of Public  Health
 7        for breast or cervical cancer screening.
 8    "Medical   assistance"  under  this  paragraph  12  shall  be
 9    identical to the benefits provided under the State's approved
10    plan under  Title  XIX  of  the  Social  Security  Act.   The
11    Department  must  request  federal  approval  of the coverage
12    under this paragraph 12 within 30 days  after  the  effective
13    date of this amendatory Act of the 92nd General Assembly.
14        The  Illinois Department and the Governor shall provide a
15    plan for coverage of the persons eligible under  paragraph  7
16    as soon as possible after July 1, 1984.
17        The eligibility of any such person for medical assistance
18    under  this  Article  is  not  affected by the payment of any
19    grant under the Senior Citizens and Disabled Persons Property
20    Tax  Relief  and  Pharmaceutical  Assistance   Act   or   any
21    distributions or items of income described under subparagraph
22    (X)  of paragraph (2) of subsection (a) of Section 203 of the
23    Illinois Income  Tax  Act.   The  Department  shall  by  rule
24    establish   the  amounts  of  assets  to  be  disregarded  in
25    determining eligibility for medical assistance,  which  shall
26    at  a  minimum  equal the amounts to be disregarded under the
27    Federal Supplemental Security Income Program.  The amount  of
28    assets of a single person to be disregarded shall not be less
29    than  $2,000, and the amount of assets of a married couple to
30    be disregarded shall not be less than $3,000.
31        To the extent permitted under  federal  law,  any  person
32    found  guilty of a second violation of Article VIIIA shall be
33    ineligible for medical  assistance  under  this  Article,  as
34    provided in Section 8A-8.
 
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 1        The  eligibility  of  any  person  for medical assistance
 2    under this Article shall not be affected by  the  receipt  by
 3    the person of donations or benefits from fundraisers held for
 4    the  person  in  cases of serious illness, as long as neither
 5    the person nor members of the  person's  family  have  actual
 6    control over the donations or benefits or the disbursement of
 7    the donations or benefits.
 8    (Source: P.A.  91-676,  eff.  12-23-99;  91-699, eff. 7-1-00;
 9    91-712, eff. 7-1-00; 92-16, eff. 6-28-01; 92-47, eff. 7-3-01;
10    92-597, eff. 6-28-02.)

11        (305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4)
12        Sec. 5-5.4.  Standards of Payment - Department of  Public
13    Aid.  The Department of Public Aid shall develop standards of
14    payment  of skilled nursing and intermediate care services in
15    facilities providing such services under this Article which:
16        (1)  Provide  for  the  determination  of  a   facility's
17    payment for skilled nursing and intermediate care services on
18    a  prospective basis.  The amount of the payment rate for all
19    nursing facilities certified  by  the  Department  of  Public
20    Health  under  the Nursing Home Care Act as Intermediate Care
21    for the Developmentally Disabled facilities, Long  Term  Care
22    for  Under  Age 22 facilities, Skilled Nursing facilities, or
23    Intermediate Care facilities  under  the  medical  assistance
24    program  shall  be  prospectively established annually on the
25    basis  of  historical,  financial,   and   statistical   data
26    reflecting  actual  costs  from  prior  years, which shall be
27    applied to the current rate year and updated  for  inflation,
28    except  that  the  capital cost element for newly constructed
29    facilities  shall  be  based  upon  projected  budgets.   The
30    annually established payment rate shall take effect on July 1
31    in 1984 and subsequent years.  No rate increase and no update
32    for inflation shall be provided on or after July 1, 1994  and
33    before July 1, 2004 2003, unless specifically provided for in
 
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 1    this Section.
 2        For  facilities  licensed  by  the  Department  of Public
 3    Health under the Nursing Home Care Act as  Intermediate  Care
 4    for the Developmentally Disabled facilities or Long Term Care
 5    for  Under Age 22 facilities, the rates taking effect on July
 6    1, 1998 shall include an  increase  of  3%.   For  facilities
 7    licensed by the Department of Public Health under the Nursing
 8    Home  Care  Act as Skilled Nursing facilities or Intermediate
 9    Care facilities, the rates taking  effect  on  July  1,  1998
10    shall  include an increase of 3% plus $1.10 per resident-day,
11    as defined by the Department.
12        For facilities  licensed  by  the  Department  of  Public
13    Health  under  the Nursing Home Care Act as Intermediate Care
14    for the Developmentally Disabled facilities or Long Term Care
15    for Under Age 22 facilities, the rates taking effect on  July
16    1,  1999  shall  include  an  increase of 1.6% plus $3.00 per
17    resident-day, as defined by the Department.   For  facilities
18    licensed by the Department of Public Health under the Nursing
19    Home  Care  Act as Skilled Nursing facilities or Intermediate
20    Care facilities, the rates taking  effect  on  July  1,  1999
21    shall  include an increase of 1.6% and, for services provided
22    on or after October 1, 1999, shall be increased by $4.00  per
23    resident-day, as defined by the Department.
24        For  facilities  licensed  by  the  Department  of Public
25    Health under the Nursing Home Care Act as  Intermediate  Care
26    for the Developmentally Disabled facilities or Long Term Care
27    for  Under Age 22 facilities, the rates taking effect on July
28    1, 2000 shall include an increase of 2.5%  per  resident-day,
29    as defined by the Department.  For facilities licensed by the
30    Department  of  Public Health under the Nursing Home Care Act
31    as  Skilled   Nursing   facilities   or   Intermediate   Care
32    facilities,  the  rates  taking  effect on July 1, 2000 shall
33    include an increase of 2.5% per resident-day, as  defined  by
34    the Department.
 
SB742 Enrolled             -15-      LRB093 03019 RCE 03036 b
 1        For  facilities  licensed  by  the  Department  of Public
 2    Health under the Nursing Home Care  Act  as  skilled  nursing
 3    facilities  or  intermediate  care  facilities, a new payment
 4    methodology must be implemented for the nursing component  of
 5    the rate effective July 1, 2003. The Department of Public Aid
 6    shall  develop  the new payment methodology using the Minimum
 7    Data Set (MDS)  as  the  instrument  to  collect  information
 8    concerning  nursing  home  resident  condition  necessary  to
 9    compute  the rate. The Department of Public Aid shall develop
10    the new payment methodology  to  meet  the  unique  needs  of
11    Illinois  nursing  home  residents while remaining subject to
12    the  appropriations  provided  by  the  General  Assembly.  A
13    transition period from the payment methodology in  effect  on
14    June 30, 2003 to the payment methodology in effect on July 1,
15    2003  shall  be  provided  for a period not exceeding 2 years
16    after  implementation  of  the  new  payment  methodology  as
17    follows:
18             (A)  For a  facility  that  would  receive  a  lower
19        nursing  component  rate  per  patient  day under the new
20        system than the facility received effective on  the  date
21        immediately   preceding  the  date  that  the  Department
22        implements  the  new  payment  methodology,  the  nursing
23        component rate per patient day for the facility shall  be
24        held  at  the  level  in  effect  on the date immediately
25        preceding the date that the Department implements the new
26        payment methodology until a higher nursing component rate
27        of reimbursement is achieved by that facility.
28             (B)  For a facility  that  would  receive  a  higher
29        nursing  component rate per patient day under the payment
30        methodology in effect on July 1, 2003 than  the  facility
31        received  effective on the date immediately preceding the
32        date that  the  Department  implements  the  new  payment
33        methodology,  the  nursing component rate per patient day
34        for the facility shall be adjusted.
 
SB742 Enrolled             -16-      LRB093 03019 RCE 03036 b
 1             (C)  Notwithstanding paragraphs  (A)  and  (B),  the
 2        nursing  component  rate per patient day for the facility
 3        shall be adjusted subject to appropriations  provided  by
 4        the General Assembly.
 5        For  facilities  licensed  by  the  Department  of Public
 6    Health under the Nursing Home Care Act as  Intermediate  Care
 7    for the Developmentally Disabled facilities or Long Term Care
 8    for Under Age 22 facilities, the rates taking effect on March
 9    1,  2001  shall  include  a  statewide  increase of 7.85%, as
10    defined by the Department.
11        For facilities  licensed  by  the  Department  of  Public
12    Health  under  the Nursing Home Care Act as Intermediate Care
13    for the Developmentally Disabled facilities or Long Term Care
14    for Under Age 22 facilities, the rates taking effect on April
15    1, 2002 shall  include  a  statewide  increase  of  2.0%,  as
16    defined  by  the Department. This increase terminates on July
17    1, 2002; beginning July 1, 2002 these rates  are  reduced  to
18    the  level  of  the  rates  in  effect  on March 31, 2002, as
19    defined by the Department.
20        For facilities  licensed  by  the  Department  of  Public
21    Health  under  the  Nursing  Home Care Act as skilled nursing
22    facilities or intermediate care facilities, the rates  taking
23    effect  on July 1, 2001, and each subsequent year thereafter,
24    shall be computed using the most recent cost reports on  file
25    with  the  Department  of  Public  Aid no later than April 1,
26    2000, updated for inflation to January 1,  2001.   For  rates
27    effective  July  1,  2001 only, rates shall be the greater of
28    the rate computed for July 1, 2001 or the rate  effective  on
29    June 30, 2001.
30        Notwithstanding  any other provision of this Section, for
31    facilities licensed by the Department of Public Health  under
32    the  Nursing  Home  Care Act as skilled nursing facilities or
33    intermediate care facilities, the Illinois  Department  shall
34    determine  by  rule  the rates taking effect on July 1, 2002,
 
SB742 Enrolled             -17-      LRB093 03019 RCE 03036 b
 1    which shall be 5.9% less than the rates in effect on June 30,
 2    2002.
 3        Rates established effective  each  July  1  shall  govern
 4    payment  for  services  rendered throughout that fiscal year,
 5    except that rates  established  on  July  1,  1996  shall  be
 6    increased  by  6.8% for services provided on or after January
 7    1, 1997.  Such rates will be based upon the rates  calculated
 8    for the year beginning July 1, 1990, and for subsequent years
 9    thereafter until June 30, 2001 shall be based on the facility
10    cost reports for the facility fiscal year ending at any point
11    in  time  during  the  previous calendar year, updated to the
12    midpoint of the rate year.  The cost report shall be on  file
13    with the Department no later than April 1 of the current rate
14    year.   Should the cost report not be on file by April 1, the
15    Department shall base the rate  on  the  latest  cost  report
16    filed  by  each  skilled  care facility and intermediate care
17    facility, updated to the midpoint of the current  rate  year.
18    In  determining rates for services rendered on and after July
19    1, 1985, fixed time shall not be computed at less than  zero.
20    The  Department shall not make any alterations of regulations
21    which would reduce any component of the Medicaid  rate  to  a
22    level  below what that component would have been utilizing in
23    the rate effective on July 1, 1984.
24        (2)  Shall take into account the actual costs incurred by
25    facilities in providing services for  recipients  of  skilled
26    nursing  and  intermediate  care  services  under the medical
27    assistance program.
28        (3)  Shall   take   into   account   the   medical    and
29    psycho-social characteristics and needs of the patients.
30        (4)  Shall take into account the actual costs incurred by
31    facilities  in  meeting licensing and certification standards
32    imposed and prescribed by the State of Illinois, any  of  its
33    political  subdivisions  or  municipalities  and  by the U.S.
34    Department of Health and Human Services pursuant to Title XIX
 
SB742 Enrolled             -18-      LRB093 03019 RCE 03036 b
 1    of the Social Security Act.
 2        The  Department  of  Public  Aid  shall  develop  precise
 3    standards for payments to reimburse  nursing  facilities  for
 4    any  utilization  of appropriate rehabilitative personnel for
 5    the provision of rehabilitative services which is  authorized
 6    by  federal regulations, including reimbursement for services
 7    provided by qualified therapists or qualified assistants, and
 8    which is in accordance with accepted professional  practices.
 9    Reimbursement  also  may  be  made  for  utilization of other
10    supportive personnel under appropriate supervision.
11    (Source: P.A. 91-24, eff. 7-1-99; 91-712, eff. 7-1-00; 92-10,
12    eff. 6-11-01; 92-31,  eff.  6-28-01;  92-597,  eff.  6-28-02;
13    92-651, eff. 7-11-02; 92-848, eff. 1-1-03; revised 9-20-02.)

14        (305 ILCS 5/5-5.4b new)
15        Sec. 5-5.4b.  Publicly owned or publicly operated nursing
16    facilities.   The  Illinois  Department may by rule establish
17    alternative   reimbursement   methodologies    for    nursing
18    facilities  that  are  owned  or  operated  by  a  county,  a
19    township,  a  municipality, a hospital district, or any other
20    local government in Illinois.

21        (305 ILCS 5/10-26)
22        Sec. 10-26. State Disbursement Unit.
23        (a)  Effective October 1, 1999  the  Illinois  Department
24    shall  establish a State Disbursement Unit in accordance with
25    the requirements of Title IV-D of the  Social  Security  Act.
26    The  Illinois Department shall enter into an agreement with a
27    State or local governmental unit or private entity to perform
28    the functions of the State Disbursement Unit as set forth  in
29    this  Section.  The State Disbursement Unit shall collect and
30    disburse support payments made under court and administrative
31    support orders:
32             (1)  being enforced in  cases  in  which  child  and
 
SB742 Enrolled             -19-      LRB093 03019 RCE 03036 b
 1        spouse  support  services  are  being provided under this
 2        Article X; and
 3             (2)  in all cases in which child and spouse  support
 4        services  are not being provided under this Article X and
 5        in which support payments are made under  the  provisions
 6        of the Income Withholding for Support Act.
 7        (a-2)  The   contract   entered   into  by  the  Illinois
 8    Department with a public or private entity or  an  individual
 9    for  the  operation of the State Disbursement Unit is subject
10    to competitive bidding.  In addition, the contract is subject
11    to Section 10-26.2 of this Code.  As used in this  subsection
12    (a-2),  "contract"  has  the  same meaning as in the Illinois
13    Procurement Code.
14        (a-5)  If the State Disbursement Unit receives a  support
15    payment  that  was  not  appropriately made to the Unit under
16    this Section, the Unit shall immediately return  the  payment
17    to the sender, including, if possible, instructions detailing
18    where to send the support payments.
19        (b)  All  payments  received  by  the  State Disbursement
20    Unit:
21             (1)  shall be deposited into an account obtained  by
22        the  Illinois  Department the State or local governmental
23        unit or private entity, as the case may be, and
24             (2)  distributed  and   disbursed   by   the   State
25        Disbursement  Unit,  in accordance with the directions of
26        the Illinois Department, pursuant to Title  IV-D  of  the
27        Social   Security   Act  and  rules  promulgated  by  the
28        Department.
29        (c)  All  support  payments  assigned  to  the   Illinois
30    Department under Article X of this Code and rules promulgated
31    by the Illinois Department that are disbursed to the Illinois
32    Department  by the State Disbursement Unit shall be paid into
33    the Child Support Enforcement Trust Fund.
34        (d)  If  the  agreement   with   the   State   or   local
 
SB742 Enrolled             -20-      LRB093 03019 RCE 03036 b
 1    governmental  unit  or  private  entity  provided for in this
 2    Section is not in effect for any reason, the Department shall
 3    perform the functions of the State Disbursement Unit  as  set
 4    forth  in this Section for a maximum of 12 months before July
 5    1, 2001, and for a maximum of 24 months after June 30,  2001.
 6    If the Illinois Department is performing the functions of the
 7    State  Disbursement  Unit  on July 1, 2001, then the Illinois
 8    Department shall make an award  on  or  before  December  31,
 9    2002,  to  a State or local government unit or private entity
10    to perform the functions  of  the  State  Disbursement  Unit.
11    Payments  received  by the Illinois Department in performance
12    of the  duties  of  the  State  Disbursement  Unit  shall  be
13    deposited  into  the  State  Disbursement Unit Revolving Fund
14    established under Section 12-8.1.  Nothing  in  this  Section
15    shall prohibit the Illinois Department from holding the State
16    Disbursement Unit Revolving Fund after June 30, 2003.
17        (e)  By  February  1, 2000, the Illinois Department shall
18    conduct at least 4 regional training and educational seminars
19    to educate the clerks of the circuit  court  on  the  general
20    operation  of  the  State  Disbursement Unit, the role of the
21    State Disbursement Unit, and the role of the  clerks  of  the
22    circuit  court  in  the  collection and distribution of child
23    support payments.
24        (f)  By March 1,  2000,  the  Illinois  Department  shall
25    conduct at least 4 regional educational and training seminars
26    to  educate  payors, as defined in the Income Withholding for
27    Support  Act,  on  the  general  operation   of   the   State
28    Disbursement  Unit,  the role of the State Disbursement Unit,
29    and the distribution of income withholding payments  pursuant
30    to this Section and the Income Withholding for Support Act.
31    (Source:  P.A.  91-212,  eff.  7-20-99;  91-677, eff. 1-5-00;
32    91-712, eff. 7-1-00; 92-44, eff. 7-1-01.)

33        (305 ILCS 5/12-8.1)
 
SB742 Enrolled             -21-      LRB093 03019 RCE 03036 b
 1        Sec. 12-8.1.  State Disbursement Unit Revolving Fund.
 2        (a)  There is created a revolving fund to be known as the
 3    State Disbursement Unit Revolving Fund, to  be  held  by  the
 4    Director  of  the  Illinois  Department,  outside  the  State
 5    treasury, for the following purposes:
 6             (1)  the deposit of all support payments received by
 7        the Illinois Department's State Disbursement Unit;
 8             (2)  the  deposit  of other funds including, but not
 9        limited  to,  transfers  of  funds  from  other  accounts
10        attributable to support payments received by the Illinois
11        Department's State Disbursement Unit;
12             (3)  the deposit of  any  interest  accrued  by  the
13        revolving  fund,  which  interest  shall be available for
14        payment of (i) any amounts considered to  be  Title  IV-D
15        program  income  that must be paid to the U.S. Department
16        of  Health  and  Human  Services  and  (ii)  any  balance
17        remaining after payments made  under  item  (i)  of  this
18        subsection  (3) to the General Revenue Fund; however, the
19        disbursements under this subdivision (3) may  not  exceed
20        the amount of the interest accrued by the revolving fund;
21             (4)  the  disbursement  of such payments to obligees
22        or to the assignees of the obligees  in  accordance  with
23        the  provisions  of Title IV-D of the Social Security Act
24        and rules promulgated by the  Department,  provided  that
25        such  disbursement  is based upon a payment by a payor or
26        obligor deposited into the revolving fund established  by
27        this Section; and
28             (5)  the disbursement of funds to payors or obligors
29        to   correct   erroneous   payments   to   the   Illinois
30        Department's State Disbursement Unit, in an amount not to
31        exceed the erroneous payments.
32        (b)  (Blank).  The provisions of this Section shall apply
33    only if the Department performs the functions of the Illinois
34    Department's State Disbursement Unit under paragraph  (d)  of
 
SB742 Enrolled             -22-      LRB093 03019 RCE 03036 b
 1    Section 10-26.
 2    (Source: P.A. 91-712, eff. 7-1-00; 92-44, eff. 7-1-01.)

 3        (305 ILCS 5/12-9) (from Ch. 23, par. 12-9)
 4        Sec.  12-9.  Public Aid Recoveries Trust Fund; uses.  The
 5    Public  Aid  Recoveries  Trust  Fund  shall  consist  of  (1)
 6    recoveries  by  the  Illinois  Department   of   Public   Aid
 7    authorized   by   this  Code  in  respect  to  applicants  or
 8    recipients under Articles  III,  IV,  V,  and  VI,  including
 9    recoveries made by the Illinois Department of Public Aid from
10    the  estates  of  deceased recipients, (2) recoveries made by
11    the  Illinois  Department  of  Public  Aid  in   respect   to
12    applicants   and   recipients  under  the  Children's  Health
13    Insurance Program, and (3) federal funds received  on  behalf
14    of  and  earned  by State universities and local governmental
15    entities for services provided to  applicants  or  recipients
16    covered under this Code.  The Fund shall be held as a special
17    fund in the State Treasury.
18        Disbursements  from  this  Fund shall be only (1) for the
19    reimbursement of claims collected by the Illinois  Department
20    of  Public  Aid  through error or mistake, (2) for payment to
21    persons or agencies designated as payees or co-payees on  any
22    instrument,  whether  or  not  negotiable,  delivered  to the
23    Illinois Department of Public Aid as a  recovery  under  this
24    Section,  such  payment to be in proportion to the respective
25    interests of the payees in the amount so collected,  (3)  for
26    payments  to the Department of Human Services for collections
27    made by the Illinois Department of Public Aid  on  behalf  of
28    the  Department  of  Human  Services under this Code, (4) for
29    payment of administrative expenses incurred in performing the
30    activities authorized under this Code,  (5)  for  payment  of
31    fees  to persons or agencies in the performance of activities
32    pursuant to the collection of monies owed the State that  are
33    collected  under  this  Code, (6) for payments of any amounts
 
SB742 Enrolled             -23-      LRB093 03019 RCE 03036 b
 1    which are reimbursable to the federal  government  which  are
 2    required  to  be paid by State warrant by either the State or
 3    federal  government,  and   (7)   for   payments   to   State
 4    universities and local governmental entities of federal funds
 5    for  services  provided  to  applicants or recipients covered
 6    under this Code.  Disbursements from this Fund  for  purposes
 7    of  items  (4)  and (5) of this paragraph shall be subject to
 8    appropriations from the Fund to the  Illinois  Department  of
 9    Public Aid.
10        The  balance  in  this  Fund  on  the  first  day of each
11    calendar quarter, after payment  therefrom  of   any  amounts
12    reimbursable  to the federal government, and minus the amount
13    reasonably anticipated to be needed to make the disbursements
14    during that quarter authorized  by  this  Section,  shall  be
15    certified  by  the  Director  of  the  Illinois Department of
16    Public Aid and transferred by the State  Comptroller  to  the
17    Drug  Rebate  Fund  or  the General Revenue Fund in the State
18    Treasury, as appropriate, within 30 days of the first day  of
19    each calendar quarter.
20        On July 1, 1999, the State Comptroller shall transfer the
21    sum  of  $5,000,000 from the Public Aid Recoveries Trust Fund
22    (formerly the Public Assistance Recoveries Trust  Fund)  into
23    the DHS Recoveries Trust Fund.
24    (Source:  P.A.  91-24,  eff.  7-1-99;  91-212,  eff. 7-20-99;
25    92-10, eff. 6-11-01; 92-16, eff. 6-28-01.)

26        (305 ILCS 5/14-8) (from Ch. 23, par. 14-8)
27        Sec. 14-8.  Disbursements to Hospitals.
28        (a)  For inpatient  hospital  services  rendered  on  and
29    after  September  1,  1991,  the  Illinois  Department  shall
30    reimburse  hospitals  for  inpatient services at an inpatient
31    payment rate calculated for  each  hospital  based  upon  the
32    Medicare  Prospective Payment System as set forth in Sections
33    1886(b), (d), (g), and (h) of  the  federal  Social  Security
 
SB742 Enrolled             -24-      LRB093 03019 RCE 03036 b
 1    Act,   and   the   regulations,   policies,   and  procedures
 2    promulgated thereunder, except as modified by  this  Section.
 3    Payment  rates for inpatient hospital services rendered on or
 4    after September 1, 1991 and on or before September  30,  1992
 5    shall  be  calculated  using the Medicare Prospective Payment
 6    rates in effect on September  1,  1991.   Payment  rates  for
 7    inpatient  hospital  services rendered on or after October 1,
 8    1992 and on or before March  31,  1994  shall  be  calculated
 9    using  the  Medicare  Prospective  Payment rates in effect on
10    September 1, 1992.   Payment  rates  for  inpatient  hospital
11    services  rendered  on  or  after  April  1,  1994  shall  be
12    calculated  using  the  Medicare  Prospective  Payment  rates
13    (including  the  Medicare  grouping methodology and weighting
14    factors  as  adjusted  pursuant  to  paragraph  (1)  of  this
15    subsection)  in   effect  90  days  prior  to  the  date   of
16    admission.   For  services rendered on or after July 1, 1995,
17    the  reimbursement   methodology   implemented   under   this
18    subsection  shall  not  include  those  costs  referred to in
19    Sections 1886(d)(5)(B) and 1886(h)  of  the  Social  Security
20    Act.  The  additional  payment amounts required under Section
21    1886(d)(5)(F) of  the  Social  Security  Act,  for  hospitals
22    serving  a  disproportionate  share of low-income or indigent
23    patients, are not required under this Section.  For  hospital
24    inpatient  services  rendered  on  or after July 1, 1995, the
25    Illinois  Department  shall  reimburse  hospitals  using  the
26    relative  weighting  factors  and  the  base  payment   rates
27    calculated  for each hospital that were in effect on June 30,
28    1995, less the  portion  of  such  rates  attributed  by  the
29    Illinois Department to the cost of medical education.
30             (1)  The weighting factors established under Section
31        1886(d)(4)  of  the Social Security Act shall not be used
32        in  the  reimbursement  system  established  under   this
33        Section.  Rather, the Illinois Department shall establish
34        by  rule  Medicaid  weighting  factors  to be used in the
 
SB742 Enrolled             -25-      LRB093 03019 RCE 03036 b
 1        reimbursement system established under this Section.
 2             (2)  The Illinois Department shall  define  by  rule
 3        those hospitals or distinct parts of hospitals that shall
 4        be exempt from the reimbursement system established under
 5        this  Section.   In defining such hospitals, the Illinois
 6        Department shall take into consideration those  hospitals
 7        exempt from the Medicare Prospective Payment System as of
 8        September 1, 1991.  For hospitals defined as exempt under
 9        this  subsection,  the  Illinois Department shall by rule
10        establish a reimbursement system for payment of inpatient
11        hospital services rendered  on  and  after  September  1,
12        1991.  For all hospitals that are children's hospitals as
13        defined in Section 5-5.02 of this Code, the reimbursement
14        methodology  shall,  through  June  30,  1992, net of all
15        applicable fees, at least equal each children's  hospital
16        1990  ICARE payment rates, indexed to the current year by
17        application of the DRI hospital cost index from  1989  to
18        the  year  in  which payments are made.  Excepting county
19        providers  as  defined  in  Article  XV  of  this   Code,
20        hospitals  licensed  under  the  University  of  Illinois
21        Hospital  Act,  and facilities operated by the Department
22        of Mental Health and Developmental Disabilities  (or  its
23        successor, the Department of Human Services) for hospital
24        inpatient services rendered on or after July 1, 1995, the
25        Illinois Department shall reimburse children's hospitals,
26        as  defined  in  89  Illinois Administrative Code Section
27        149.50(c)(3), at the rates in effect on  June  30,  1995,
28        and  shall  reimburse all other hospitals at the rates in
29        effect on June 30, 1995, less the portion of  such  rates
30        attributed  by  the  Illinois  Department  to the cost of
31        medical  education.  For  inpatient   hospital   services
32        provided  on  or  after  August  1,  1998,  the  Illinois
33        Department may establish by rule a means of adjusting the
34        rates  of children's hospitals, as defined in 89 Illinois
 
SB742 Enrolled             -26-      LRB093 03019 RCE 03036 b
 1        Administrative Code Section 149.50(c)(3),  that  did  not
 2        meet  that  definition on June 30, 1995, in order for the
 3        inpatient hospital rates of such hospitals to  take  into
 4        account  the  average  inpatient  hospital rates of those
 5        children's hospitals that  did  meet  the  definition  of
 6        children's hospitals on June 30, 1995.
 7             (3)  (Blank)
 8             (4)  Notwithstanding  any  other  provision  of this
 9        Section, hospitals  that  on  August  31,  1991,  have  a
10        contract  with  the Illinois Department under Section 3-4
11        of the Illinois Health Finance Reform Act  may  elect  to
12        continue  to  be  reimbursed  at  rates  stated  in  such
13        contracts for general and specialty care.
14             (5)  In  addition  to  any  payments made under this
15        subsection (a), the Illinois Department  shall  make  the
16        adjustment  payments  required  by Section 5-5.02 of this
17        Code;  provided,  that  in  the  case  of  any   hospital
18        reimbursed  under  a  per  case methodology, the Illinois
19        Department shall add an amount equal to  the  product  of
20        the  hospital's  average  length  of  stay, less one day,
21        multiplied  by  20,  for  inpatient   hospital   services
22        rendered  on  or after September 1, 1991 and on or before
23        September 30, 1992.
24        (b)  (Blank)
25        (b-5)  Excepting county providers as defined  in  Article
26    XV  of  this Code, hospitals licensed under the University of
27    Illinois  Hospital  Act,  and  facilities  operated  by   the
28    Illinois   Department  of  Mental  Health  and  Developmental
29    Disabilities (or  its  successor,  the  Department  of  Human
30    Services),  for outpatient services rendered on or after July
31    1, 1995 and before July 1, 1998 the Illinois Department shall
32    reimburse children's hospitals, as defined  in  the  Illinois
33    Administrative  Code  Section  149.50(c)(3),  at the rates in
34    effect on June 30, 1995, less  that  portion  of  such  rates
 
SB742 Enrolled             -27-      LRB093 03019 RCE 03036 b
 1    attributed  by  the  Illinois  Department  to  the outpatient
 2    indigent volume adjustment  and  shall  reimburse  all  other
 3    hospitals  at  the rates in effect on June 30, 1995, less the
 4    portions of such rates attributed by the Illinois  Department
 5    to  the  cost  of  medical  education  and  attributed by the
 6    Illinois  Department  to  the  outpatient   indigent   volume
 7    adjustment.   For  outpatient  services  provided on or after
 8    July 1, 1998, reimbursement rates  shall  be  established  by
 9    rule.
10        (c)  In  addition  to any other payments under this Code,
11    the   Illinois   Department   shall   develop   a    hospital
12    disproportionate   share   reimbursement   methodology  that,
13    effective July 1, 1991, through  September  30,  1992,  shall
14    reimburse  hospitals  sufficiently  to  expend the fee monies
15    described in subsection (b) of Section 14-3 of this Code  and
16    the   federal   matching   funds  received  by  the  Illinois
17    Department as a result of expenditures made by  the  Illinois
18    Department  as  required  by  this subsection (c) and Section
19    14-2 that are attributable to fee  monies  deposited  in  the
20    Fund,  less  amounts  applied  to  adjustment  payments under
21    Section 5-5.02.
22        (d)  Critical Care Access Payments.
23             (1)  In addition to any other  payments  made  under
24        this  Code,  the  Illinois  Department  shall  develop  a
25        reimbursement  methodology  that shall reimburse Critical
26        Care Access Hospitals for the specialized  services  that
27        qualify  them  as  Critical  Care  Access  Hospitals.  No
28        adjustment  payments  shall be made under this subsection
29        on or after July 1, 1995.
30             (2)  "Critical Care Access Hospitals" includes,  but
31        is  not  limited  to, hospitals that meet at least one of
32        the following criteria:
33                  (A)  Hospitals    located    outside    of    a
34             metropolitan statistical area that are designated as
 
SB742 Enrolled             -28-      LRB093 03019 RCE 03036 b
 1             Level  II  Perinatal  Centers  and  that  provide  a
 2             disproportionate  share  of  perinatal  services  to
 3             recipients; or
 4                  (B)  Hospitals that are designated as  Level  I
 5             Trauma  Centers  (adult  or  pediatric)  and certain
 6             Level  II  Trauma  Centers  as  determined  by   the
 7             Illinois Department; or
 8                  (C)  Hospitals    located    outside    of    a
 9             metropolitan  statistical  area  and  that provide a
10             disproportionate share of  obstetrical  services  to
11             recipients.
12        (e)  Inpatient  high  volume  adjustment.   For  hospital
13    inpatient  services, effective with rate periods beginning on
14    or after October 1, 1993,  in  addition  to  rates  paid  for
15    inpatient  services  by the Illinois Department, the Illinois
16    Department  shall  make  adjustment  payments  for  inpatient
17    services furnished by Medicaid high  volume  hospitals.   The
18    Illinois  Department  shall  establish  by  rule criteria for
19    qualifying as a  Medicaid  high  volume  hospital  and  shall
20    establish by rule a reimbursement methodology for calculating
21    these  adjustment payments to Medicaid high volume hospitals.
22    No adjustment payment shall be made under this subsection for
23    services rendered on or after July 1, 1995.
24        (f)  The Illinois Department  shall  modify  its  current
25    rules  governing  adjustment  payments  for  targeted access,
26    critical care access,  and  uncompensated  care  to  classify
27    those   adjustment   payments   as   not  being  payments  to
28    disproportionate share  hospitals  under  Title  XIX  of  the
29    federal   Social  Security  Act.  Rules  adopted  under  this
30    subsection shall not be effective with  respect  to  services
31    rendered  on  or after July 1, 1995.  The Illinois Department
32    has no obligation to adopt or implement any rules or make any
33    payments under this subsection for services  rendered  on  or
34    after July 1, 1995.
 
SB742 Enrolled             -29-      LRB093 03019 RCE 03036 b
 1        (f-5)  The  State  recognizes that adjustment payments to
 2    hospitals providing certain  services  or  incurring  certain
 3    costs  may  be necessary to assure that recipients of medical
 4    assistance  have  adequate  access   to   necessary   medical
 5    services.   These  adjustments  include payments for teaching
 6    costs  and  uncompensated  care,  trauma   center   payments,
 7    rehabilitation  hospital payments, perinatal center payments,
 8    obstetrical care payments, targeted access payments, Medicaid
 9    high  volume  payments,  and   outpatient   indigent   volume
10    payments.    On   or  before  April  1,  1995,  the  Illinois
11    Department  shall   issue   recommendations   regarding   (i)
12    reimbursement  mechanisms  or  adjustment payments to reflect
13    these costs and services,  including  methods  by  which  the
14    payments  may  be  calculated  and  the  method  by which the
15    payments may be financed, and (ii)  reimbursement  mechanisms
16    or  adjustment  payments  to  reflect  costs  and services of
17    federally qualified health centers with respect to recipients
18    of medical assistance.
19        (g)  If one or more hospitals  file  suit  in  any  court
20    challenging  any  part  of  this  Article  XIV,  payments  to
21    hospitals  under  this  Article XIV shall be made only to the
22    extent that sufficient monies are available in the  Fund  and
23    only  to  the  extent  that  any  monies  in the Fund are not
24    prohibited from disbursement under any order of the court.
25        (h)  Payments   under   the   disbursement    methodology
26    described  in  this  Section  are  subject to approval by the
27    federal government in an appropriate State plan amendment.
28        (i)  The  Illinois  Department  may  by  rule   establish
29    criteria   for   and  develop  methodologies  for  adjustment
30    payments to hospitals participating under this Article.
31        (j)  Hospital  Residing  Long  Term  Care  Services.   In
32    addition  to  any  other  payments  made under this Code, the
33    Illinois  Department  may  by  rule  establish  criteria  and
34    develop methodologies for payments to hospitals for  Hospital
 
SB742 Enrolled             -30-      LRB093 03019 RCE 03036 b
 1    Residing Long Term Care Services.
 2    (Source:  P.A.  89-21,  eff.  7-1-95;  89-499,  eff. 6-28-96;
 3    89-507, eff. 7-1-97; 90-9, eff. 7-1-97; 90-14,  eff.  7-1-97;
 4    90-588, eff. 7-1-98.)

 5        (305 ILCS 5/15-5) (from Ch. 23, par. 15-5)
 6        Sec. 15-5. Disbursements from the Fund.
 7        (a)  The  monies  in  the Fund shall be disbursed only as
 8    provided in Section 15-2 of this Code and as follows:
 9             (1)  To  pay   the   county   hospitals'   inpatient
10        reimbursement rate based on actual costs, trended forward
11        annually  by  an  inflation  index  and  supplemented  by
12        teaching,  capital,  and other direct and indirect costs,
13        according  to  a  State  plan  approved  by  the  federal
14        government. Effective  October  1,  1992,  the  inpatient
15        reimbursement  rate  (including  any  disproportionate or
16        supplemental   disproportionate   share   payments)   for
17        hospital services provided by county operated  facilities
18        within the County shall be no less than the reimbursement
19        rates in effect on June 1, 1992, except that this minimum
20        shall  be  adjusted  as  of  July 1, 1992 and each July 1
21        thereafter through July 1, 2002 by the annual  percentage
22        change  in  the  per  diem  cost  of  inpatient  hospital
23        services  as  reported in the most recent annual Medicaid
24        cost  report.  Effective  July  1,  2003,  the  rate  for
25        hospital inpatient services provided by county  hospitals
26        shall  be  the  rate in effect on January 1, 2003, except
27        that  this  minimum  may  be  adjusted  by  the  Illinois
28        Department  to  ensure  compliance  with  aggregate   and
29        hospital-specific federal payment limitations.
30             (2)  To  pay  county  hospitals  and county operated
31        outpatient facilities for outpatient services based on  a
32        federally  approved  methodology  to  cover  the  maximum
33        allowable  costs  per patient visit. Effective October 1,
 
SB742 Enrolled             -31-      LRB093 03019 RCE 03036 b
 1        1992, the outpatient reimbursement  rate  for  outpatient
 2        services provided by county hospitals and county operated
 3        outpatient   facilities   shall   be  no  less  than  the
 4        reimbursement rates in effect on  June  1,  1992,  except
 5        that  this  minimum  shall be adjusted as of July 1, 1992
 6        and each July 1 thereafter through July 1,  2002  by  the
 7        annual   percentage  change  in  the  per  diem  cost  of
 8        inpatient hospital  services  as  reported  in  the  most
 9        recent  annual  Medicaid  cost  report. Effective July 1,
10        2003, the Illinois Department  shall  by  rule  establish
11        rates   for   outpatient   services  provided  by  county
12        hospitals and other county-operated facilities within the
13        County  that  are  in  compliance  with   aggregate   and
14        hospital-specific federal payment limitations.
15             (3)  To  pay  the county hospitals' disproportionate
16        share payments as established by the Illinois  Department
17        under  Section  5-5.02 of this Code. Effective October 1,
18        1992, the disproportionate share  payments  for  hospital
19        services  provided  by  county operated facilities within
20        the County shall be no less than the reimbursement  rates
21        in effect on June 1, 1992, except that this minimum shall
22        be adjusted as of July 1, 1992 and each July 1 thereafter
23        through  July  1, 2002 by the annual percentage change in
24        the per diem  cost  of  inpatient  hospital  services  as
25        reported  in the most recent annual Medicaid cost report.
26        Effective July 1, 2003, the Illinois  Department  may  by
27        rule  establish rates for disproportionate share payments
28        to county hospitals that are in compliance with aggregate
29        and hospital-specific federal payment limitations.
30             (3.5)  To pay county providers for services provided
31        pursuant to Section 5-11 of this Code.
32             (4)  To reimburse the county providers for  expenses
33        contractually  assumed  pursuant  to Section 15-4 of this
34        Code.
 
SB742 Enrolled             -32-      LRB093 03019 RCE 03036 b
 1             (5)  To pay the Illinois  Department  its  necessary
 2        administrative  expenses  relative  to the Fund and other
 3        amounts agreed to, if any, by the county providers in the
 4        agreement provided for in subsection (c).
 5             (6)  To pay the county providers  any  other  amount
 6        due   hospitals'   supplemental   disproportionate  share
 7        payments,  hereby  authorized,  as   specified   in   the
 8        agreement provided for in subsection (c) and according to
 9        a  federally  approved  State  plan,  including  but  not
10        limited  to payments made under the provisions of Section
11        701(d)(3)(B) of the federal Medicare, Medicaid, and SCHIP
12        Benefits  Improvement  and  Protection   Act   of   2000.
13        Intergovernmental  transfers  supporting  payments  under
14        this   paragraph   (6)   shall  not  be  subject  to  the
15        computation described in subsection (a) of  Section  15-3
16        of  this  Code,  but  shall be computed as the difference
17        between the total of such payments made by  the  Illinois
18        Department to county providers less any amount of federal
19        financial participation due the Illinois Department under
20        Titles XIX and XXI of the Social Security Act as a result
21        of  such  payments to county providers. Effective October
22        1, 1992, the supplemental disproportionate share payments
23        for  hospital  services  provided  by   county   operated
24        facilities  within  the  County shall be no less than the
25        reimbursement rates in effect on  June  1,  1992,  except
26        that  this  minimum  shall be adjusted as of July 1, 1992
27        and each July  1  thereafter  by  the  annual  percentage
28        change  in  the  per  diem  cost  of  inpatient  hospital
29        services  as  reported in the most recent annual Medicaid
30        cost report.
31        (b)  The Illinois  Department  shall  promptly  seek  all
32    appropriate  amendments  to the Illinois State Plan to effect
33    the foregoing payment methodology.
34        (c)  The Illinois Department shall implement the  changes
 
SB742 Enrolled             -33-      LRB093 03019 RCE 03036 b
 1    made  by  Article  3 of this amendatory Act of 1992 beginning
 2    October  1,  1992.   All  terms   and   conditions   of   the
 3    disbursement  of monies from the Fund not set forth expressly
 4    in this Article shall be set forth in the agreement  executed
 5    under  the Intergovernmental Cooperation Act so long as those
 6    terms and conditions are not inconsistent with  this  Article
 7    or  applicable  federal  law.   The Illinois Department shall
 8    report  in  writing  to  the  Hospital  Service   Procurement
 9    Advisory  Board  and the Health Care Cost Containment Council
10    by October 15, 1992, the terms and  conditions  of  all  such
11    initial  agreements  and, where no such initial agreement has
12    yet been executed with  a  qualifying  county,  the  Illinois
13    Department's reasons that each such initial agreement has not
14    been  executed.   Copies  and  reports  of amended agreements
15    following the initial agreements shall likewise be  filed  by
16    the Illinois Department with the Hospital Service Procurement
17    Advisory  Board  and the Health Care Cost Containment Council
18    within 30 days  following  their  execution.   The  foregoing
19    filing   obligations   of   the   Illinois   Department   are
20    informational   only,   to   allow  the  Board  and  Council,
21    respectively, to better  perform their public  roles,  except
22    that  the Board or Council may, at its discretion, advise the
23    Illinois Department  in  the  case  of  the  failure  of  the
24    Illinois  Department  to  reach agreement with any qualifying
25    county by the required date.
26        (d)  The payments provided for  herein  are  intended  to
27    cover  services  rendered  on and after July 1, 1991, and any
28    agreement  executed  between  a  qualifying  county  and  the
29    Illinois Department pursuant to this Section may relate  back
30    to  that  date,  provided  the  Illinois  Department  obtains
31    federal  approval.   Any  changes  in payment rates resulting
32    from the provisions of Article 3 of this  amendatory  Act  of
33    1992  are  intended to apply to services rendered on or after
34    October  1,  1992,  and  any  agreement  executed  between  a
 
SB742 Enrolled             -34-      LRB093 03019 RCE 03036 b
 1    qualifying county and the  Illinois  Department  pursuant  to
 2    this Section may be effective as of that date.
 3        (e)  If  one  or  more  hospitals  file suit in any court
 4    challenging  any  part  of  this  Article  XV,  payments   to
 5    hospitals  from  the Fund under this Article XV shall be made
 6    only to the extent that sufficient monies  are  available  in
 7    the  Fund  and only to the extent that any monies in the Fund
 8    are not prohibited from disbursement  and  may  be  disbursed
 9    under any order of the court.
10        (f)  All  payments under this Section are contingent upon
11    federal approval of  changes  to  the  State  plan,  if  that
12    approval is required.
13    (Source: P.A. 92-370, eff. 8-15-01.)

14        (305 ILCS 5/5-7 rep.)
15        Section 15-6.  The Illinois Public Aid Code is amended by
16    repealing Section 5-7.

17                             ARTICLE 20.

18        Section  20-5.  The Alzheimer's Disease Assistance Act is
19    amended by changing Section 7 as follows:

20        (410 ILCS 405/7) (from Ch. 111 1/2, par. 6957)
21        Sec.  7.   Regional  ADA  center  funding  grants-in-aid.
22    Pursuant to appropriations enacted by the  General  Assembly,
23    the Department shall provide funds grants-in-aid to hospitals
24    affiliated  with  each  Regional  ADA  Center  for  necessary
25    research  and for the development and maintenance of services
26    for victims of Alzheimer's disease and related disorders  and
27    their  families.  For the fiscal year beginning July 1, 2003,
28    and  each  year  thereafter,  the  Department  shall   effect
29    payments under this Section to hospitals affiliated with each
30    Regional ADA Center through the Illinois Department of Public
 
SB742 Enrolled             -35-      LRB093 03019 RCE 03036 b
 1    Aid.   The  Department  shall include the annual expenditures
 2    for this purpose in the plan required by Section  5  of  this
 3    Act.  in  accordance  with  the  State Alzheimer's Assistance
 4    Plan. The first $2,000,000 of any grants-in-aid  appropriated
 5    by the General Assembly for Regional ADA Centers in any State
 6    fiscal  year  shall be distributed in equal portions to those
 7    Regional ADA Centers receiving the appropriated grants-in-aid
 8    for the State fiscal year beginning July 1, 1996.  The  first
 9    $400,000  appropriated  by  the General Assembly in excess of
10    $2,000,000 in any State fiscal year  beginning  on  or  after
11    July  1, 1997 shall be distributed in equal portions to those
12    Regional ADA Centers receiving the appropriated grants-in-aid
13    for the State fiscal year beginning July 1, 1996.  Any monies
14    appropriated by the General Assembly in excess of  $2,400,000
15    for  any State fiscal year beginning on or after July 1, 1997
16    shall be distributed in equal portions to each  Regional  ADA
17    Center.  The Department shall promulgate rules and procedures
18    governing the distribution and  specific  purposes  for  such
19    grants, including any contributions of recipients of services
20    toward the cost of care.
21    (Source: P.A. 90-404, eff. 8-15-97.)

22                             ARTICLE 99.

23        Section  99-99.   Effective  date.  This Act takes effect
24    upon becoming law.