Illinois General Assembly - Full Text of SB0742
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Full Text of SB0742  93rd General Assembly

SB0742ham001 93rd General Assembly


093_SB0742ham001











                                     LRB093 03019 NHT 17311 a

 1                    AMENDMENT TO SENATE BILL 742

 2        AMENDMENT NO.     .  Amend Senate Bill 742  by  replacing
 3    the title with the following:

 4        "AN ACT concerning budget implementation."; and

 5    by  replacing  everything  after the enacting clause with the
 6    following:

 7                             "ARTICLE 1.

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

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

13                             ARTICLE 3.

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

16        (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
17        Sec. 5-45.  Emergency rulemaking.
 
                            -2-      LRB093 03019 NHT 17311 a
 1        (a)  "Emergency" means the  existence  of  any  situation
 2    that  any agency finds reasonably constitutes a threat to the
 3    public interest, safety, or welfare.
 4        (b)  If any agency finds that an  emergency  exists  that
 5    requires  adoption of a rule upon fewer days than is required
 6    by Section 5-40 and states in writing its  reasons  for  that
 7    finding, the agency may adopt an emergency rule without prior
 8    notice   or   hearing  upon  filing  a  notice  of  emergency
 9    rulemaking with the Secretary of State  under  Section  5-70.
10    The  notice  shall include the text of the emergency rule and
11    shall be published in the Illinois Register.  Consent  orders
12    or  other  court orders adopting settlements negotiated by an
13    agency  may  be  adopted  under  this  Section.   Subject  to
14    applicable  constitutional  or   statutory   provisions,   an
15    emergency  rule  becomes  effective  immediately  upon filing
16    under Section 5-65 or at a stated date  less  than  10   days
17    thereafter.   The  agency's  finding  and  a statement of the
18    specific reasons for the finding  shall  be  filed  with  the
19    rule.   The  agency  shall  take  reasonable  and appropriate
20    measures to make emergency rules known to the persons who may
21    be affected by them.
22        (c)  An emergency rule may be effective for a  period  of
23    not longer than 150 days, but the agency's authority to adopt
24    an  identical  rule  under Section 5-40 is not precluded.  No
25    emergency rule may be adopted more than once in any 24  month
26    period,   except  that  this  limitation  on  the  number  of
27    emergency rules that may be adopted in a 24 month period does
28    not apply to (i) emergency rules that make additions  to  and
29    deletions  from  the  Drug Manual under Section 5-5.16 of the
30    Illinois Public Aid Code or the generic drug formulary  under
31    Section  3.14  of the Illinois Food, Drug and Cosmetic Act or
32    (ii) emergency rules adopted by the Pollution  Control  Board
33    before  July  1,  1997 to implement portions of the Livestock
34    Management Facilities  Act.   Two  or  more  emergency  rules
 
                            -3-      LRB093 03019 NHT 17311 a
 1    having  substantially  the  same  purpose and effect shall be
 2    deemed to be a single rule for purposes of this Section.
 3        (d)  In order to provide for the expeditious  and  timely
 4    implementation  of  the  State's  fiscal  year  1999  budget,
 5    emergency  rules  to  implement  any  provision of Public Act
 6    90-587 or 90-588 or any other budget  initiative  for  fiscal
 7    year  1999  may be adopted in accordance with this Section by
 8    the agency  charged  with  administering  that  provision  or
 9    initiative,  except  that  the  24-month  limitation  on  the
10    adoption  of  emergency  rules and the provisions of Sections
11    5-115 and 5-125 do not apply  to  rules  adopted  under  this
12    subsection  (d).   The adoption of emergency rules authorized
13    by this subsection (d) shall be deemed to  be  necessary  for
14    the public interest, safety, and welfare.
15        (e)  In  order  to provide for the expeditious and timely
16    implementation  of  the  State's  fiscal  year  2000  budget,
17    emergency rules to implement any provision of this amendatory
18    Act  of  the  91st  General  Assembly  or  any  other  budget
19    initiative for fiscal year 2000 may be adopted in  accordance
20    with  this  Section  by the agency charged with administering
21    that  provision  or  initiative,  except  that  the  24-month
22    limitation  on  the  adoption  of  emergency  rules  and  the
23    provisions of Sections 5-115 and 5-125 do not apply to  rules
24    adopted under this subsection (e).  The adoption of emergency
25    rules authorized by this subsection (e) shall be deemed to be
26    necessary for the public interest, safety, and welfare.
27        (f)  In  order  to provide for the expeditious and timely
28    implementation  of  the  State's  fiscal  year  2001  budget,
29    emergency rules to implement any provision of this amendatory
30    Act  of  the  91st  General  Assembly  or  any  other  budget
31    initiative for fiscal year 2001 may be adopted in  accordance
32    with  this  Section  by the agency charged with administering
33    that  provision  or  initiative,  except  that  the  24-month
34    limitation  on  the  adoption  of  emergency  rules  and  the
 
                            -4-      LRB093 03019 NHT 17311 a
 1    provisions of Sections 5-115 and 5-125 do not apply to  rules
 2    adopted under this subsection (f).  The adoption of emergency
 3    rules authorized by this subsection (f) shall be deemed to be
 4    necessary for the public interest, safety, and welfare.
 5        (g)  In  order  to provide for the expeditious and timely
 6    implementation  of  the  State's  fiscal  year  2002  budget,
 7    emergency rules to implement any provision of this amendatory
 8    Act  of  the  92nd  General  Assembly  or  any  other  budget
 9    initiative for fiscal year 2002 may be adopted in  accordance
10    with  this  Section  by the agency charged with administering
11    that  provision  or  initiative,  except  that  the  24-month
12    limitation  on  the  adoption  of  emergency  rules  and  the
13    provisions of Sections 5-115 and 5-125 do not apply to  rules
14    adopted under this subsection (g).  The adoption of emergency
15    rules authorized by this subsection (g) shall be deemed to be
16    necessary for the public interest, safety, and welfare.
17        (h)  In  order  to provide for the expeditious and timely
18    implementation  of  the  State's  fiscal  year  2003  budget,
19    emergency rules to implement any provision of this amendatory
20    Act  of  the  92nd  General  Assembly  or  any  other  budget
21    initiative for fiscal year 2003 may be adopted in  accordance
22    with  this  Section  by the agency charged with administering
23    that  provision  or  initiative,  except  that  the  24-month
24    limitation  on  the  adoption  of  emergency  rules  and  the
25    provisions of Sections 5-115 and 5-125 do not apply to  rules
26    adopted under this subsection (h).  The adoption of emergency
27    rules authorized by this subsection (h) shall be deemed to be
28    necessary for the public interest, safety, and welfare.
29        (i)  In  order  to provide for the expeditious and timely
30    implementation  of  the  State's  fiscal  year  2004  budget,
31    emergency rules to implement any provision of this amendatory
32    Act  of  the  93rd  General  Assembly  or  any  other  budget
33    initiative for fiscal year 2004 may be adopted in  accordance
34    with  this  Section  by the agency charged with administering
 
                            -5-      LRB093 03019 NHT 17311 a
 1    that  provision  or  initiative,  except  that  the  24-month
 2    limitation  on  the  adoption  of  emergency  rules  and  the
 3    provisions of Sections 5-115 and 5-125 do not apply to  rules
 4    adopted under this subsection (i).  The adoption of emergency
 5    rules authorized by this subsection (i) shall be deemed to be
 6    necessary for the public interest, safety, and welfare.
 7    (Source:  P.A.  91-24,  eff.  7-1-99;  91-357,  eff. 7-29-99;
 8    91-712,  eff.  7-1-00;  92-10,  eff.  6-11-01;  92-597,  eff.
 9    6-28-02.)

10                             ARTICLE 5.

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

13        (30 ILCS 105/6z-30)
14        Sec.  6z-30.   University  of  Illinois Hospital Services
15    Fund.
16        (a)  The University of Illinois Hospital Services Fund is
17    created as  a  special  fund  in  the  State  Treasury.   The
18    following moneys shall be deposited into the Fund:
19             (1)  As soon as possible after the beginning of each
20        fiscal  year  (starting  in  fiscal year 1995), and in no
21        event later than July 30, the State Comptroller  and  the
22        State  Treasurer shall automatically transfer $44,700,000
23        from the  General  Revenue  Fund  to  the  University  of
24        Illinois Hospital Services Fund.
25             (2)  All  intergovernmental transfer payments to the
26        Illinois Department of Public Aid by  the  University  of
27        Illinois  Hospital  made pursuant to an intergovernmental
28        agreement under subsection (b) or (c) of Section 5A-3  of
29        the Illinois Public Aid Code.
30             (3)  All  federal  matching  funds  received  by the
31        Illinois  Department  of  Public  Aid  as  a  result   of
 
                            -6-      LRB093 03019 NHT 17311 a
 1        expenditures  made  by  the  Illinois Department that are
 2        attributable to moneys that were deposited in the Fund.
 3        (b)  Moneys in the fund  may  be  used  by  the  Illinois
 4    Department  of  Public  Aid,  subject  to  appropriation,  to
 5    reimburse  the  University  of Illinois Hospital for hospital
 6    and pharmacy services.  The fund may also  be  used  to  make
 7    monthly  transfers to the General Revenue Fund as provided in
 8    subsection (c).
 9        (c)  The State  Comptroller  and  State  Treasurer  shall
10    automatically  transfer  on the last day of each month except
11    June, beginning August  31,  1994,  from  the  University  of
12    Illinois  Hospital Services Fund to the General Revenue Fund,
13    an amount determined and certified to the  State  Comptroller
14    by  the  Director of Public Aid, equal to the amount by which
15    the balance in the  Fund  exceeds  the  amount  necessary  to
16    ensure   timely   payments  to  the  University  of  Illinois
17    Hospital.
18        On June 30, 1995 and each June 30 thereafter,  the  State
19    Comptroller  and State Treasurer shall automatically transfer
20    the entire balance in the  University  of  Illinois  Hospital
21    Services Fund to the General Revenue Fund.
22    (Source: P.A. 88-554, eff. 7-26-94; 89-499, eff. 6-28-96.)

23        (30 ILCS 105/6z-58)
24        Sec. 6z-58. The Family Care Fund.
25        (a)  There  is  created  in the State treasury the Family
26    Care Fund. Interest earned by the Fund shall be  credited  to
27    the Fund.
28        (b)  The  Fund  is  created  solely  for  the purposes of
29    receiving, investing, and distributing moneys  in  accordance
30    with  an  approved  waiver  under  the  Social  Security  Act
31    resulting  from  the  Family Care waiver request submitted by
32    the Illinois Department of Public Aid on February  15,  2002.
33    The Fund shall consist of:
 
                            -7-      LRB093 03019 NHT 17311 a
 1             (1)  All   federal  financial  participation  moneys
 2        received pursuant to  the  approved  waiver,  except  for
 3        moneys  received  pursuant  to  expenditures  for medical
 4        services by the Department of Public Aid from  any  other
 5        fund; and
 6             (2)  All  other moneys received by the Fund from any
 7        source, including interest thereon.
 8        (c)  Subject to appropriation, the  moneys  in  the  Fund
 9    shall  be disbursed for reimbursement of medical services and
10    other costs associated with persons receiving  such  services
11    under  the  waiver  due  to  their relationship with children
12    receiving medical services  pursuant  to  Article  V  of  the
13    Illinois  Public  Aid Code or the Children's Health Insurance
14    Program Act.
15    (Source: P.A. 92-600, eff. 6-28-02.)

16                             ARTICLE 15.

17        Section 15-5.  The Illinois Public Aid Code is amended by
18    changing Sections 5-2, 5-5.4, 10-26, 12-8.1, 12-9, 14-8,  and
19    15-5 and adding Section 5-5.4b as follows:

20        (305 ILCS 5/5-2) (from Ch. 23, par. 5-2)
21        Sec.   5-2.  Classes   of   Persons   Eligible.   Medical
22    assistance under this Article shall be available  to  any  of
23    the  following  classes  of persons in respect to whom a plan
24    for coverage has  been  submitted  to  the  Governor  by  the
25    Illinois Department and approved by him:
26        1.  Recipients of basic maintenance grants under Articles
27    III and IV.
28        2.  Persons  otherwise  eligible  for  basic  maintenance
29    under  Articles III and IV but who fail to qualify thereunder
30    on the basis of need, and who have  insufficient  income  and
31    resources  to  meet  the  costs  of  necessary  medical care,
 
                            -8-      LRB093 03019 NHT 17311 a
 1    including but not limited to the following:
 2             (a)  All  persons  otherwise  eligible   for   basic
 3        maintenance  under  Article  III  but who fail to qualify
 4        under that Article on the basis  of  need  and  who  meet
 5        either of the following requirements:
 6                  (i)  their   income,   as   determined  by  the
 7             Illinois Department in accordance with  any  federal
 8             requirements, is equal to or less than 70% in fiscal
 9             year  2001, equal to or less than 85% in fiscal year
10             2002 and until  a  date  to  be  determined  by  the
11             Department  by  rule, and equal to or less than 100%
12             beginning on the date determined by  the  Department
13             by  rule,  of  the  nonfarm  income official poverty
14             line, as defined by the federal Office of Management
15             and Budget and revised annually in  accordance  with
16             Section  673(2) of the Omnibus Budget Reconciliation
17             Act of 1981, applicable  to  families  of  the  same
18             size; or
19                  (ii)  their  income,  after  the  deduction  of
20             costs  incurred for medical care and for other types
21             of remedial care, is equal to or less  than  70%  in
22             fiscal  year  2001,  equal  to  or  less than 85% in
23             fiscal year 2002 and until a date to  be  determined
24             by the Department by rule, and equal to or less than
25             100%   beginning  on  the  date  determined  by  the
26             Department by rule, of the nonfarm  income  official
27             poverty  line,  as  defined  in  item  (i)  of  this
28             subparagraph (a).
29             (b)  All  persons  who  would be determined eligible
30        for  such  basic  maintenance   under   Article   IV   by
31        disregarding  the  maximum  earned  income  permitted  by
32        federal law.
33        3.  Persons  who  would  otherwise qualify for Aid to the
34    Medically Indigent under Article VII.
 
                            -9-      LRB093 03019 NHT 17311 a
 1        4.  Persons not  eligible  under  any  of  the  preceding
 2    paragraphs  who  fall  sick,  are injured, or die, not having
 3    sufficient money, property or other  resources  to  meet  the
 4    costs  of  necessary  medical  care  or  funeral  and  burial
 5    expenses.
 6        5. (a)  Women   during   pregnancy,  after  the  fact  of
 7        pregnancy has been determined by medical  diagnosis,  and
 8        during the 60-day period beginning on the last day of the
 9        pregnancy,  together with their infants and children born
10        after September 30, 1983, whose income and resources  are
11        insufficient  to meet the costs of necessary medical care
12        to the maximum extent possible under  Title  XIX  of  the
13        Federal Social Security Act.
14             (b)  The  Illinois Department and the Governor shall
15        provide a plan for coverage of the persons eligible under
16        paragraph 5(a) by April 1, 1990.  Such plan shall provide
17        ambulatory prenatal  care  to  pregnant  women  during  a
18        presumptive  eligibility  period  and establish an income
19        eligibility standard that is equal to 133% of the nonfarm
20        income official poverty line, as defined by  the  federal
21        Office  of  Management and Budget and revised annually in
22        accordance with Section  673(2)  of  the  Omnibus  Budget
23        Reconciliation Act of 1981, applicable to families of the
24        same  size, provided that costs incurred for medical care
25        are not taken into account  in  determining  such  income
26        eligibility.
27             (c)  The   Illinois   Department   may   conduct   a
28        demonstration  in  at  least one county that will provide
29        medical assistance to pregnant women, together with their
30        infants and children up to one year  of  age,  where  the
31        income  eligibility  standard  is  set  up to 185% of the
32        nonfarm income official poverty line, as defined  by  the
33        federal  Office  of  Management  and Budget. The Illinois
34        Department shall seek and obtain necessary  authorization
 
                            -10-     LRB093 03019 NHT 17311 a
 1        provided   under   federal   law   to  implement  such  a
 2        demonstration.  Such demonstration may establish resource
 3        standards  that  are  not  more  restrictive  than  those
 4        established under Article IV of this Code.
 5        6.  Persons under the age of 18 who fail  to  qualify  as
 6    dependent  under  Article IV and who have insufficient income
 7    and resources to meet the costs of necessary medical care  to
 8    the  maximum  extent permitted under Title XIX of the Federal
 9    Social Security Act.
10        7.  Persons who are under 21 18 years of age  or  younger
11    and  would  qualify  as disabled as defined under the Federal
12    Supplemental  Security  Income  Program,   provided   medical
13    service  for  such  persons  would  be  eligible  for Federal
14    Financial Participation, and provided the Illinois Department
15    determines that:
16             (a)  the person requires a level of care provided by
17        a hospital, skilled  nursing  facility,  or  intermediate
18        care  facility,  as determined by a physician licensed to
19        practice medicine in all its branches;
20             (b)  it is appropriate to provide such care  outside
21        of  an institution, as determined by a physician licensed
22        to practice medicine in all its branches;
23             (c)  the estimated amount which  would  be  expended
24        for  care outside the institution is not greater than the
25        estimated  amount  which  would   be   expended   in   an
26        institution.
27        8.  Persons  who  become ineligible for basic maintenance
28    assistance  under  Article  IV  of  this  Code  in   programs
29    administered  by  the  Illinois  Department due to employment
30    earnings and persons in assistance units comprised of  adults
31    and  children  who  become  ineligible  for basic maintenance
32    assistance under Article VI of this Code  due  to  employment
33    earnings.   The  plan  for coverage for this class of persons
34    shall:
 
                            -11-     LRB093 03019 NHT 17311 a
 1             (a)  extend the medical assistance coverage  for  up
 2        to  12  months following termination of basic maintenance
 3        assistance; and
 4             (b)  offer persons who  have  initially  received  6
 5        months  of  the coverage provided in paragraph (a) above,
 6        the  option  of  receiving  an  additional  6  months  of
 7        coverage, subject to the following:
 8                  (i)  such  coverage  shall   be   pursuant   to
 9             provisions of the federal Social Security Act;
10                  (ii)  such  coverage shall include all services
11             covered while the  person  was  eligible  for  basic
12             maintenance assistance;
13                  (iii)  no  premium  shall  be  charged for such
14             coverage; and
15                  (iv)  such coverage shall be suspended  in  the
16             event  of  a  person's failure without good cause to
17             file in a timely fashion reports required  for  this
18             coverage  under the Social Security Act and coverage
19             shall be reinstated upon the filing of such  reports
20             if the person remains otherwise eligible.
21        9.  Persons   with   acquired  immunodeficiency  syndrome
22    (AIDS) or with AIDS-related conditions with respect  to  whom
23    there   has  been  a  determination  that  but  for  home  or
24    community-based services such individuals would  require  the
25    level  of  care  provided  in  an inpatient hospital, skilled
26    nursing facility or intermediate care facility  the  cost  of
27    which  is reimbursed under this Article.  Assistance shall be
28    provided to such persons  to  the  maximum  extent  permitted
29    under Title XIX of the Federal Social Security Act.
30        10.  Participants   in   the   long-term  care  insurance
31    partnership program established  under  the  Partnership  for
32    Long-Term Care Act who meet the qualifications for protection
33    of resources described in Section 25 of that Act.
34        11.  Persons  with  disabilities  who  are  employed  and
 
                            -12-     LRB093 03019 NHT 17311 a
 1    eligible     for     Medicaid,     pursuant     to    Section
 2    1902(a)(10)(A)(ii)(xv)  of  the  Social  Security   Act,   as
 3    provided by the Illinois Department by rule.
 4        12.  Subject   to   federal  approval,  persons  who  are
 5    eligible for medical  assistance  coverage  under  applicable
 6    provisions of the federal Social Security Act and the federal
 7    Breast  and  Cervical  Cancer Prevention and Treatment Act of
 8    2000.  Those eligible persons are defined to include, but not
 9    be limited to, the following persons:
10             (1)  persons who have been screened  for  breast  or
11        cervical  cancer  under  the  U.S.  Centers  for  Disease
12        Control and Prevention Breast and Cervical Cancer Program
13        established  under  Title XV of the federal Public Health
14        Services Act  in  accordance  with  the  requirements  of
15        Section  1504 of that Act as administered by the Illinois
16        Department of Public Health; and
17             (2)  persons  whose  screenings  under   the   above
18        program  were  funded  in  whole  or  in  part  by  funds
19        appropriated  to the Illinois Department of Public Health
20        for breast or cervical cancer screening.
21    "Medical  assistance"  under  this  paragraph  12  shall   be
22    identical to the benefits provided under the State's approved
23    plan  under  Title  XIX  of  the  Social  Security  Act.  The
24    Department must request  federal  approval  of  the  coverage
25    under  this  paragraph  12 within 30 days after the effective
26    date of this amendatory Act of the 92nd General Assembly.
27        The Illinois Department and the Governor shall provide  a
28    plan  for  coverage of the persons eligible under paragraph 7
29    as soon as possible after July 1, 1984.
30        The eligibility of any such person for medical assistance
31    under this Article is not affected  by  the  payment  of  any
32    grant under the Senior Citizens and Disabled Persons Property
33    Tax   Relief   and   Pharmaceutical  Assistance  Act  or  any
34    distributions or items of income described under subparagraph
 
                            -13-     LRB093 03019 NHT 17311 a
 1    (X) of paragraph (2) of subsection (a) of Section 203 of  the
 2    Illinois  Income  Tax  Act.   The  Department  shall  by rule
 3    establish  the  amounts  of  assets  to  be  disregarded   in
 4    determining  eligibility  for medical assistance, which shall
 5    at a minimum equal the amounts to be  disregarded  under  the
 6    Federal  Supplemental Security Income Program.  The amount of
 7    assets of a single person to be disregarded shall not be less
 8    than $2,000, and the amount of assets of a married couple  to
 9    be disregarded shall not be less than $3,000.
10        To  the  extent  permitted  under federal law, any person
11    found guilty of a second violation of Article VIIIA shall  be
12    ineligible  for  medical  assistance  under  this Article, as
13    provided in Section 8A-8.
14        The eligibility of  any  person  for  medical  assistance
15    under  this  Article  shall not be affected by the receipt by
16    the person of donations or benefits from fundraisers held for
17    the person in cases of serious illness, as  long  as  neither
18    the  person  nor  members  of the person's family have actual
19    control over the donations or benefits or the disbursement of
20    the donations or benefits.
21    (Source: P.A. 91-676, eff.  12-23-99;  91-699,  eff.  7-1-00;
22    91-712, eff. 7-1-00; 92-16, eff. 6-28-01; 92-47, eff. 7-3-01;
23    92-597, eff. 6-28-02.)

24        (305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4)
25        Sec.  5-5.4.  Standards of Payment - Department of Public
26    Aid.  The Department of Public Aid shall develop standards of
27    payment of skilled nursing and intermediate care services  in
28    facilities providing such services under this Article which:
29        (1)  Provide   for  the  determination  of  a  facility's
30    payment for skilled nursing and intermediate care services on
31    a prospective basis.  The amount of the payment rate for  all
32    nursing  facilities  certified  by  the  Department of Public
33    Health under the Nursing Home Care Act as  Intermediate  Care
 
                            -14-     LRB093 03019 NHT 17311 a
 1    for  the  Developmentally Disabled facilities, Long Term Care
 2    for Under Age 22 facilities, Skilled Nursing  facilities,  or
 3    Intermediate  Care  facilities  under  the medical assistance
 4    program shall be prospectively established  annually  on  the
 5    basis   of   historical,   financial,  and  statistical  data
 6    reflecting actual costs from  prior  years,  which  shall  be
 7    applied  to  the current rate year and updated for inflation,
 8    except that the capital cost element  for  newly  constructed
 9    facilities  shall  be  based  upon  projected  budgets.   The
10    annually established payment rate shall take effect on July 1
11    in 1984 and subsequent years.  No rate increase and no update
12    for  inflation shall be provided on or after July 1, 1994 and
13    before July 1, 2004 2003, unless specifically provided for in
14    this Section.
15        For facilities  licensed  by  the  Department  of  Public
16    Health  under  the Nursing Home Care Act as Intermediate Care
17    for the Developmentally Disabled facilities or Long Term Care
18    for Under Age 22 facilities, the rates taking effect on  July
19    1,  1998  shall  include  an  increase of 3%.  For facilities
20    licensed by the Department of Public Health under the Nursing
21    Home Care Act as Skilled Nursing facilities  or  Intermediate
22    Care  facilities,  the  rates  taking  effect on July 1, 1998
23    shall include an increase of 3% plus $1.10 per  resident-day,
24    as defined by the Department.
25        For  facilities  licensed  by  the  Department  of Public
26    Health under the Nursing Home Care Act as  Intermediate  Care
27    for the Developmentally Disabled facilities or Long Term Care
28    for  Under Age 22 facilities, the rates taking effect on July
29    1, 1999 shall include an increase  of  1.6%  plus  $3.00  per
30    resident-day,  as  defined by the Department.  For facilities
31    licensed by the Department of Public Health under the Nursing
32    Home Care Act as Skilled Nursing facilities  or  Intermediate
33    Care  facilities,  the  rates  taking  effect on July 1, 1999
34    shall include an increase of 1.6% and, for services  provided
 
                            -15-     LRB093 03019 NHT 17311 a
 1    on  or after October 1, 1999, shall be increased by $4.00 per
 2    resident-day, as defined by the Department.
 3        For facilities  licensed  by  the  Department  of  Public
 4    Health  under  the Nursing Home Care Act as Intermediate Care
 5    for the Developmentally Disabled facilities or Long Term Care
 6    for Under Age 22 facilities, the rates taking effect on  July
 7    1,  2000  shall include an increase of 2.5% per resident-day,
 8    as defined by the Department.  For facilities licensed by the
 9    Department of Public Health under the Nursing Home  Care  Act
10    as   Skilled   Nursing   facilities   or   Intermediate  Care
11    facilities, the rates taking effect on  July  1,  2000  shall
12    include  an  increase of 2.5% per resident-day, as defined by
13    the Department.
14        For facilities  licensed  by  the  Department  of  Public
15    Health  under  the  Nursing  Home Care Act as skilled nursing
16    facilities or intermediate care  facilities,  a  new  payment
17    methodology  must be implemented for the nursing component of
18    the rate effective July 1, 2003. The Department of Public Aid
19    shall develop the new payment methodology using  the  Minimum
20    Data  Set  (MDS)  as  the  instrument  to collect information
21    concerning  nursing  home  resident  condition  necessary  to
22    compute the rate. The Department of Public Aid shall  develop
23    the  new  payment  methodology  to  meet  the unique needs of
24    Illinois nursing home residents while  remaining  subject  to
25    the  appropriations  provided  by  the  General  Assembly.  A
26    transition  period  from the payment methodology in effect on
27    June 30, 2003 to the payment methodology in effect on July 1,
28    2003 shall be provided for a period  not  exceeding  2  years
29    after  implementation  of  the  new  payment  methodology  as
30    follows:
31             (A)  For  a  facility  that  would  receive  a lower
32        nursing component rate per  patient  day  under  the  new
33        system  than  the facility received effective on the date
34        immediately  preceding  the  date  that  the   Department
 
                            -16-     LRB093 03019 NHT 17311 a
 1        implements  the  new  payment  methodology,  the  nursing
 2        component  rate per patient day for the facility shall be
 3        held at the level  in  effect  on  the  date  immediately
 4        preceding the date that the Department implements the new
 5        payment methodology until a higher nursing component rate
 6        of reimbursement is achieved by that facility.
 7             (B)  For  a  facility  that  would  receive a higher
 8        nursing component rate per patient day under the  payment
 9        methodology  in  effect on July 1, 2003 than the facility
10        received effective on the date immediately preceding  the
11        date  that  the  Department  implements  the  new payment
12        methodology, the nursing component rate per  patient  day
13        for the facility shall be adjusted.
14             (C)  Notwithstanding  paragraphs  (A)  and  (B), the
15        nursing component rate per patient day for  the  facility
16        shall  be  adjusted subject to appropriations provided by
17        the General Assembly.
18        For facilities  licensed  by  the  Department  of  Public
19    Health  under  the Nursing Home Care Act as Intermediate Care
20    for the Developmentally Disabled facilities or Long Term Care
21    for Under Age 22 facilities, the rates taking effect on March
22    1, 2001 shall include  a  statewide  increase  of  7.85%,  as
23    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 April
28    1,  2002  shall  include  a  statewide  increase  of 2.0%, as
29    defined by the Department. This increase terminates  on  July
30    1,  2002;  beginning  July 1, 2002 these rates are reduced to
31    the level of the rates  in  effect  on  March  31,  2002,  as
32    defined by the Department.
33        For  facilities  licensed  by  the  Department  of Public
34    Health under the Nursing Home Care  Act  as  skilled  nursing
 
                            -17-     LRB093 03019 NHT 17311 a
 1    facilities  or intermediate care facilities, the rates taking
 2    effect on July 1, 2001, and each subsequent year  thereafter,
 3    shall  be computed using the most recent cost reports on file
 4    with the Department of Public Aid  no  later  than  April  1,
 5    2000,  updated  for  inflation to January 1, 2001.  For rates
 6    effective July 1, 2001 only, rates shall be  the  greater  of
 7    the  rate  computed for July 1, 2001 or the rate effective on
 8    June 30, 2001.
 9        Notwithstanding any other provision of this Section,  for
10    facilities  licensed by the Department of Public Health under
11    the Nursing Home Care Act as skilled  nursing  facilities  or
12    intermediate  care  facilities, the Illinois Department shall
13    determine by rule the rates taking effect on  July  1,  2002,
14    which shall be 5.9% less than the rates in effect on June 30,
15    2002.
16        Rates  established  effective  each  July  1 shall govern
17    payment for services rendered throughout  that  fiscal  year,
18    except  that  rates  established  on  July  1,  1996 shall be
19    increased by 6.8% for services provided on or  after  January
20    1,  1997.  Such rates will be based upon the rates calculated
21    for the year beginning July 1, 1990, and for subsequent years
22    thereafter until June 30, 2001 shall be based on the facility
23    cost reports for the facility fiscal year ending at any point
24    in time during the previous calendar  year,  updated  to  the
25    midpoint  of the rate year.  The cost report shall be on file
26    with the Department no later than April 1 of the current rate
27    year.  Should the cost report not be on file by April 1,  the
28    Department  shall  base  the  rate  on the latest cost report
29    filed by each skilled care  facility  and  intermediate  care
30    facility,  updated  to the midpoint of the current rate year.
31    In determining rates for services rendered on and after  July
32    1,  1985, fixed time shall not be computed at less than zero.
33    The Department shall not make any alterations of  regulations
34    which  would  reduce  any component of the Medicaid rate to a
 
                            -18-     LRB093 03019 NHT 17311 a
 1    level below what that component would have been utilizing  in
 2    the rate effective on July 1, 1984.
 3        (2)  Shall take into account the actual costs incurred by
 4    facilities  in  providing  services for recipients of skilled
 5    nursing and intermediate  care  services  under  the  medical
 6    assistance program.
 7        (3)  Shall    take   into   account   the   medical   and
 8    psycho-social characteristics and needs of the patients.
 9        (4)  Shall take into account the actual costs incurred by
10    facilities in meeting licensing and  certification  standards
11    imposed  and  prescribed by the State of Illinois, any of its
12    political subdivisions or  municipalities  and  by  the  U.S.
13    Department of Health and Human Services pursuant to Title XIX
14    of the Social Security Act.
15        The  Department  of  Public  Aid  shall  develop  precise
16    standards  for  payments  to reimburse nursing facilities for
17    any utilization of appropriate rehabilitative  personnel  for
18    the  provision of rehabilitative services which is authorized
19    by federal regulations, including reimbursement for  services
20    provided by qualified therapists or qualified assistants, and
21    which  is in accordance with accepted professional practices.
22    Reimbursement also may  be  made  for  utilization  of  other
23    supportive personnel under appropriate supervision.
24    (Source: P.A. 91-24, eff. 7-1-99; 91-712, eff. 7-1-00; 92-10,
25    eff.  6-11-01;  92-31,  eff.  6-28-01;  92-597, eff. 6-28-02;
26    92-651, eff. 7-11-02; 92-848, eff. 1-1-03; revised 9-20-02.)

27        (305 ILCS 5/5-5.4b new)
28        Sec. 5-5.4b.  Publicly-owned or publicly-operated nursing
29    facilities.  The Illinois Department may  by  rule  establish
30    alternative    reimbursement    methodologies   for   nursing
31    facilities  that  are  owned  or  operated  by  a  county,  a
32    township, a municipality, a hospital district, or  any  other
33    local government in Illinois.
 
                            -19-     LRB093 03019 NHT 17311 a
 1        (305 ILCS 5/10-26)
 2        Sec. 10-26. State Disbursement Unit.
 3        (a)  Effective  October  1,  1999 the Illinois Department
 4    shall establish a State Disbursement Unit in accordance  with
 5    the  requirements  of  Title IV-D of the Social Security Act.
 6    The Illinois Department shall enter into an agreement with  a
 7    State or local governmental unit or private entity to perform
 8    the  functions of the State Disbursement Unit as set forth in
 9    this Section.  The State Disbursement Unit shall collect  and
10    disburse support payments made under court and administrative
11    support orders:
12             (1)  being  enforced  in  cases  in  which child and
13        spouse support services are  being  provided  under  this
14        Article X; and
15             (2)  in  all cases in which child and spouse support
16        services are not being provided under this Article X  and
17        in  which  support payments are made under the provisions
18        of the Income Withholding for Support Act.
19        (a-2)  The  contract  entered  into   by   the   Illinois
20    Department  with  a public or private entity or an individual
21    for the operation of the State Disbursement Unit  is  subject
22    to competitive bidding.  In addition, the contract is subject
23    to  Section 10-26.2 of this Code.  As used in this subsection
24    (a-2), "contract" has the same meaning  as  in  the  Illinois
25    Procurement Code.
26        (a-5)  If  the State Disbursement Unit receives a support
27    payment that was not appropriately made  to  the  Unit  under
28    this  Section,  the Unit shall immediately return the payment
29    to the sender, including, if possible, instructions detailing
30    where to send the support payments.
31        (b)  All payments  received  by  the  State  Disbursement
32    Unit:
33             (1)  shall  be deposited into an account obtained by
34        the Illinois Department the State or  local  governmental
 
                            -20-     LRB093 03019 NHT 17311 a
 1        unit or private entity, as the case may be, and
 2             (2)  distributed   and   disbursed   by   the  State
 3        Disbursement Unit, in accordance with the  directions  of
 4        the  Illinois  Department,  pursuant to Title IV-D of the
 5        Social  Security  Act  and  rules  promulgated   by   the
 6        Department.
 7        (c)  All   support  payments  assigned  to  the  Illinois
 8    Department under Article X of this Code and rules promulgated
 9    by the Illinois Department that are disbursed to the Illinois
10    Department by the State Disbursement Unit shall be paid  into
11    the Child Support Enforcement Trust Fund.
12        (d)  If   the   agreement   with   the   State  or  local
13    governmental unit or private  entity  provided  for  in  this
14    Section is not in effect for any reason, the Department shall
15    perform  the  functions of the State Disbursement Unit as set
16    forth in this Section for a maximum of 12 months before  July
17    1,  2001, and for a maximum of 24 months after June 30, 2001.
18    If the Illinois Department is performing the functions of the
19    State Disbursement Unit on July 1, 2001,  then  the  Illinois
20    Department  shall  make  an  award  on or before December 31,
21    2002, to a State or local government unit or  private  entity
22    to  perform  the  functions  of  the State Disbursement Unit.
23    Payments received by the Illinois Department  in  performance
24    of  the  duties  of  the  State  Disbursement  Unit  shall be
25    deposited into the State  Disbursement  Unit  Revolving  Fund
26    established  under  Section  12-8.1.  Nothing in this Section
27    shall prohibit the Illinois Department from holding the State
28    Disbursement Unit Revolving Fund after June 30, 2003.
29        (e)  By February 1, 2000, the Illinois  Department  shall
30    conduct at least 4 regional training and educational seminars
31    to  educate  the  clerks  of the circuit court on the general
32    operation of the State Disbursement Unit,  the  role  of  the
33    State  Disbursement  Unit,  and the role of the clerks of the
34    circuit court in the collection  and  distribution  of  child
 
                            -21-     LRB093 03019 NHT 17311 a
 1    support payments.
 2        (f)  By  March  1,  2000,  the  Illinois Department shall
 3    conduct at least 4 regional educational and training seminars
 4    to educate payors, as defined in the Income  Withholding  for
 5    Support   Act,   on   the  general  operation  of  the  State
 6    Disbursement Unit, the role of the State  Disbursement  Unit,
 7    and  the distribution of income withholding payments pursuant
 8    to this Section and the Income Withholding for Support Act.
 9    (Source: P.A. 91-212,  eff.  7-20-99;  91-677,  eff.  1-5-00;
10    91-712, eff. 7-1-00; 92-44, eff. 7-1-01.)

11        (305 ILCS 5/12-8.1)
12        Sec. 12-8.1.  State Disbursement Unit Revolving Fund.
13        (a)  There is created a revolving fund to be known as the
14    State  Disbursement  Unit  Revolving  Fund, to be held by the
15    Director  of  the  Illinois  Department,  outside  the  State
16    treasury, for the following purposes:
17             (1)  the deposit of all support payments received by
18        the Illinois Department's State Disbursement Unit;
19             (2)  the deposit of other funds including,  but  not
20        limited  to,  transfers  of  funds  from  other  accounts
21        attributable to support payments received by the Illinois
22        Department's State Disbursement Unit;
23             (3)  the  deposit  of  any  interest  accrued by the
24        revolving fund, which interest  shall  be  available  for
25        payment  of  (i)  any amounts considered to be Title IV-D
26        program income that must be paid to the  U.S.  Department
27        of  Health  and  Human  Services  and  (ii)  any  balance
28        remaining  after  payments  made  under  item (i) of this
29        subsection (3) to the General Revenue Fund; however,  the
30        disbursements  under  this subdivision (3) may not exceed
31        the amount of the interest accrued by the revolving fund;
32             (4)  the disbursement of such payments  to  obligees
33        or  to  the  assignees of the obligees in accordance with
 
                            -22-     LRB093 03019 NHT 17311 a
 1        the provisions of Title IV-D of the Social  Security  Act
 2        and  rules  promulgated  by the Department, provided that
 3        such disbursement is based upon a payment by a  payor  or
 4        obligor  deposited into the revolving fund established by
 5        this Section; and
 6             (5)  the disbursement of funds to payors or obligors
 7        to   correct   erroneous   payments   to   the   Illinois
 8        Department's State Disbursement Unit, in an amount not to
 9        exceed the erroneous payments.
10        (b)  (Blank). The provisions of this Section shall  apply
11    only if the Department performs the functions of the Illinois
12    Department's  State  Disbursement Unit under paragraph (d) of
13    Section 10-26.
14    (Source: P.A. 91-712, eff. 7-1-00; 92-44, eff. 7-1-01.)

15        (305 ILCS 5/12-9) (from Ch. 23, par. 12-9)
16        Sec. 12-9.  Public Aid Recoveries Trust Fund; uses.   The
17    Public  Aid  Recoveries  Trust  Fund  shall  consist  of  (1)
18    recoveries   by   the   Illinois  Department  of  Public  Aid
19    authorized  by  this  Code  in  respect  to   applicants   or
20    recipients  under  Articles  III,  IV,  V,  and VI, including
21    recoveries made by the Illinois Department of Public Aid from
22    the estates of deceased recipients, (2)  recoveries  made  by
23    the   Illinois   Department  of  Public  Aid  in  respect  to
24    applicants  and  recipients  under  the   Children's   Health
25    Insurance  Program,  and (3) federal funds received on behalf
26    of and earned by State universities  and  local  governmental
27    entities  for  services  provided to applicants or recipients
28    covered under this Code.  The Fund shall be held as a special
29    fund in the State Treasury.
30        Disbursements from this Fund shall be only  (1)  for  the
31    reimbursement  of claims collected by the Illinois Department
32    of Public Aid through error or mistake, (2)  for  payment  to
33    persons  or agencies designated as payees or co-payees on any
 
                            -23-     LRB093 03019 NHT 17311 a
 1    instrument, whether  or  not  negotiable,  delivered  to  the
 2    Illinois  Department  of  Public Aid as a recovery under this
 3    Section, such payment to be in proportion to  the  respective
 4    interests  of  the payees in the amount so collected, (3) for
 5    payments to the Department of Human Services for  collections
 6    made  by  the  Illinois Department of Public Aid on behalf of
 7    the Department of Human Services under  this  Code,  (4)  for
 8    payment of administrative expenses incurred in performing the
 9    activities  authorized  under  this  Code, (5) for payment of
10    fees to persons or agencies in the performance of  activities
11    pursuant  to the collection of monies owed the State that are
12    collected under this Code, (6) for payments  of  any  amounts
13    which  are  reimbursable  to the federal government which are
14    required to be paid by State warrant by either the  State  or
15    federal   government,   and   (7)   for   payments  to  State
16    universities and local governmental entities of federal funds
17    for services provided to  applicants  or  recipients  covered
18    under  this  Code.  Disbursements from this Fund for purposes
19    of items (4) and (5) of this paragraph shall  be  subject  to
20    appropriations  from  the  Fund to the Illinois Department of
21    Public Aid.
22        The balance in  this  Fund  on  the  first  day  of  each
23    calendar  quarter,  after  payment  therefrom of  any amounts
24    reimbursable to the federal government, and minus the  amount
25    reasonably anticipated to be needed to make the disbursements
26    during  that  quarter  authorized  by  this Section, shall be
27    certified by the  Director  of  the  Illinois  Department  of
28    Public  Aid  and  transferred by the State Comptroller to the
29    Drug Rebate Fund or the General Revenue  Fund  in  the  State
30    Treasury,  as appropriate, within 30 days of the first day of
31    each calendar quarter.
32        On July 1, 1999, the State Comptroller shall transfer the
33    sum of $5,000,000 from the Public Aid Recoveries  Trust  Fund
34    (formerly  the  Public Assistance Recoveries Trust Fund) into
 
                            -24-     LRB093 03019 NHT 17311 a
 1    the DHS Recoveries Trust Fund.
 2    (Source: P.A.  91-24,  eff.  7-1-99;  91-212,  eff.  7-20-99;
 3    92-10, eff. 6-11-01; 92-16, eff. 6-28-01.)

 4        (305 ILCS 5/14-8) (from Ch. 23, par. 14-8)
 5        Sec. 14-8.  Disbursements to Hospitals.
 6        (a)  For  inpatient  hospital  services  rendered  on and
 7    after  September  1,  1991,  the  Illinois  Department  shall
 8    reimburse hospitals for inpatient services  at  an  inpatient
 9    payment  rate  calculated  for  each  hospital based upon the
10    Medicare Prospective Payment System as set forth in  Sections
11    1886(b),  (d),  (g),  and  (h) of the federal Social Security
12    Act,  and   the   regulations,   policies,   and   procedures
13    promulgated  thereunder,  except as modified by this Section.
14    Payment rates for inpatient hospital services rendered on  or
15    after  September  1, 1991 and on or before September 30, 1992
16    shall be calculated using the  Medicare  Prospective  Payment
17    rates  in  effect  on  September  1, 1991.  Payment rates for
18    inpatient hospital services rendered on or after  October  1,
19    1992  and  on  or  before  March 31, 1994 shall be calculated
20    using the Medicare Prospective Payment  rates  in  effect  on
21    September  1,  1992.    Payment  rates for inpatient hospital
22    services  rendered  on  or  after  April  1,  1994  shall  be
23    calculated  using  the  Medicare  Prospective  Payment  rates
24    (including the Medicare grouping  methodology  and  weighting
25    factors  as  adjusted  pursuant  to  paragraph  (1)  of  this
26    subsection)   in   effect  90  days  prior  to  the  date  of
27    admission.  For services rendered on or after July  1,  1995,
28    the   reimbursement   methodology   implemented   under  this
29    subsection shall not  include  those  costs  referred  to  in
30    Sections  1886(d)(5)(B)  and  1886(h)  of the Social Security
31    Act. The additional payment amounts  required  under  Section
32    1886(d)(5)(F)  of  the  Social  Security  Act,  for hospitals
33    serving a disproportionate share of  low-income  or  indigent
 
                            -25-     LRB093 03019 NHT 17311 a
 1    patients,  are not required under this Section.  For hospital
 2    inpatient services rendered on or after  July  1,  1995,  the
 3    Illinois  Department  shall  reimburse  hospitals  using  the
 4    relative   weighting  factors  and  the  base  payment  rates
 5    calculated for each hospital that were in effect on June  30,
 6    1995,  less  the  portion  of  such  rates  attributed by the
 7    Illinois Department to the cost of medical education.
 8             (1)  The weighting factors established under Section
 9        1886(d)(4) of the Social Security Act shall not  be  used
10        in   the  reimbursement  system  established  under  this
11        Section.  Rather, the Illinois Department shall establish
12        by rule Medicaid weighting factors  to  be  used  in  the
13        reimbursement system established under this Section.
14             (2)  The  Illinois  Department  shall define by rule
15        those hospitals or distinct parts of hospitals that shall
16        be exempt from the reimbursement system established under
17        this Section.  In defining such hospitals,  the  Illinois
18        Department  shall take into consideration those hospitals
19        exempt from the Medicare Prospective Payment System as of
20        September 1, 1991.  For hospitals defined as exempt under
21        this subsection, the Illinois Department  shall  by  rule
22        establish a reimbursement system for payment of inpatient
23        hospital  services  rendered  on  and  after September 1,
24        1991.  For all hospitals that are children's hospitals as
25        defined in Section 5-5.02 of this Code, the reimbursement
26        methodology shall, through June  30,  1992,  net  of  all
27        applicable  fees, at least equal each children's hospital
28        1990 ICARE payment rates, indexed to the current year  by
29        application  of  the DRI hospital cost index from 1989 to
30        the year in which payments are  made.   Excepting  county
31        providers   as  defined  in  Article  XV  of  this  Code,
32        hospitals  licensed  under  the  University  of  Illinois
33        Hospital Act, and facilities operated by  the  Department
34        of  Mental  Health and Developmental Disabilities (or its
 
                            -26-     LRB093 03019 NHT 17311 a
 1        successor, the Department of Human Services) for hospital
 2        inpatient services rendered on or after July 1, 1995, the
 3        Illinois Department shall reimburse children's hospitals,
 4        as defined in 89  Illinois  Administrative  Code  Section
 5        149.50(c)(3),  at  the  rates in effect on June 30, 1995,
 6        and shall reimburse all other hospitals at the  rates  in
 7        effect  on  June 30, 1995, less the portion of such rates
 8        attributed by the Illinois  Department  to  the  cost  of
 9        medical   education.   For  inpatient  hospital  services
10        provided  on  or  after  August  1,  1998,  the  Illinois
11        Department may establish by rule a means of adjusting the
12        rates of children's hospitals, as defined in 89  Illinois
13        Administrative  Code  Section  149.50(c)(3), that did not
14        meet that definition on June 30, 1995, in order  for  the
15        inpatient  hospital  rates of such hospitals to take into
16        account the average inpatient  hospital  rates  of  those
17        children's  hospitals  that  did  meet  the definition of
18        children's hospitals on June 30, 1995.
19             (3)  (Blank)
20             (4)  Notwithstanding any  other  provision  of  this
21        Section,  hospitals  that  on  August  31,  1991,  have a
22        contract with the Illinois Department under  Section  3-4
23        of  the  Illinois  Health Finance Reform Act may elect to
24        continue  to  be  reimbursed  at  rates  stated  in  such
25        contracts for general and specialty care.
26             (5)  In addition to any  payments  made  under  this
27        subsection  (a),  the  Illinois Department shall make the
28        adjustment payments required by Section  5-5.02  of  this
29        Code;   provided,  that  in  the  case  of  any  hospital
30        reimbursed under a per  case  methodology,  the  Illinois
31        Department  shall  add  an amount equal to the product of
32        the hospital's average length  of  stay,  less  one  day,
33        multiplied   by   20,  for  inpatient  hospital  services
34        rendered on or after September 1, 1991 and on  or  before
 
                            -27-     LRB093 03019 NHT 17311 a
 1        September 30, 1992.
 2        (b)  (Blank)
 3        (b-5)  Excepting  county  providers as defined in Article
 4    XV of this Code, hospitals licensed under the  University  of
 5    Illinois   Hospital  Act,  and  facilities  operated  by  the
 6    Illinois  Department  of  Mental  Health  and   Developmental
 7    Disabilities  (or  its  successor,  the  Department  of Human
 8    Services), for outpatient services rendered on or after  July
 9    1, 1995 and before July 1, 1998 the Illinois Department shall
10    reimburse  children's  hospitals,  as defined in the Illinois
11    Administrative Code Section 149.50(c)(3),  at  the  rates  in
12    effect  on  June  30,  1995,  less that portion of such rates
13    attributed by  the  Illinois  Department  to  the  outpatient
14    indigent  volume  adjustment  and  shall  reimburse all other
15    hospitals at the rates in effect on June 30, 1995,  less  the
16    portions  of such rates attributed by the Illinois Department
17    to the cost  of  medical  education  and  attributed  by  the
18    Illinois   Department   to  the  outpatient  indigent  volume
19    adjustment.  For outpatient services  provided  on  or  after
20    July  1,  1998,  reimbursement  rates shall be established by
21    rule.
22        (c)  In addition to any other payments under  this  Code,
23    the    Illinois   Department   shall   develop   a   hospital
24    disproportionate  share   reimbursement   methodology   that,
25    effective  July  1,  1991,  through September 30, 1992, shall
26    reimburse hospitals sufficiently to  expend  the  fee  monies
27    described  in subsection (b) of Section 14-3 of this Code and
28    the  federal  matching  funds  received   by   the   Illinois
29    Department  as  a result of expenditures made by the Illinois
30    Department as required by this  subsection  (c)  and  Section
31    14-2  that  are  attributable  to fee monies deposited in the
32    Fund, less  amounts  applied  to  adjustment  payments  under
33    Section 5-5.02.
34        (d)  Critical Care Access Payments.
 
                            -28-     LRB093 03019 NHT 17311 a
 1             (1)  In  addition  to  any other payments made under
 2        this  Code,  the  Illinois  Department  shall  develop  a
 3        reimbursement methodology that shall  reimburse  Critical
 4        Care  Access  Hospitals for the specialized services that
 5        qualify  them  as  Critical  Care  Access  Hospitals.  No
 6        adjustment payments shall be made under  this  subsection
 7        on or after July 1, 1995.
 8             (2)  "Critical  Care Access Hospitals" includes, but
 9        is not limited to, hospitals that meet at  least  one  of
10        the following criteria:
11                  (A)  Hospitals    located    outside    of    a
12             metropolitan statistical area that are designated as
13             Level  II  Perinatal  Centers  and  that  provide  a
14             disproportionate  share  of  perinatal  services  to
15             recipients; or
16                  (B)  Hospitals  that  are designated as Level I
17             Trauma Centers  (adult  or  pediatric)  and  certain
18             Level   II  Trauma  Centers  as  determined  by  the
19             Illinois Department; or
20                  (C)  Hospitals    located    outside    of    a
21             metropolitan statistical area  and  that  provide  a
22             disproportionate  share  of  obstetrical services to
23             recipients.
24        (e)  Inpatient  high  volume  adjustment.   For  hospital
25    inpatient services, effective with rate periods beginning  on
26    or  after  October  1,  1993,  in  addition to rates paid for
27    inpatient services by the Illinois Department,  the  Illinois
28    Department  shall  make  adjustment  payments  for  inpatient
29    services  furnished  by  Medicaid high volume hospitals.  The
30    Illinois Department shall  establish  by  rule  criteria  for
31    qualifying  as  a  Medicaid  high  volume  hospital and shall
32    establish by rule a reimbursement methodology for calculating
33    these adjustment payments to Medicaid high volume  hospitals.
34    No adjustment payment shall be made under this subsection for
 
                            -29-     LRB093 03019 NHT 17311 a
 1    services rendered on or after July 1, 1995.
 2        (f)  The  Illinois  Department  shall  modify its current
 3    rules governing  adjustment  payments  for  targeted  access,
 4    critical  care  access,  and  uncompensated  care to classify
 5    those  adjustment  payments  as   not   being   payments   to
 6    disproportionate  share  hospitals  under  Title  XIX  of the
 7    federal  Social  Security  Act.  Rules  adopted  under   this
 8    subsection  shall  not  be effective with respect to services
 9    rendered on or after July 1, 1995.  The  Illinois  Department
10    has no obligation to adopt or implement any rules or make any
11    payments  under  this  subsection for services rendered on or
12    after July 1, 1995.
13        (f-5)  The State recognizes that adjustment  payments  to
14    hospitals  providing  certain  services  or incurring certain
15    costs may be necessary to assure that recipients  of  medical
16    assistance   have   adequate   access  to  necessary  medical
17    services.  These adjustments include  payments  for  teaching
18    costs   and   uncompensated  care,  trauma  center  payments,
19    rehabilitation hospital payments, perinatal center  payments,
20    obstetrical care payments, targeted access payments, Medicaid
21    high   volume   payments,   and  outpatient  indigent  volume
22    payments.   On  or  before  April  1,  1995,   the   Illinois
23    Department   shall   issue   recommendations   regarding  (i)
24    reimbursement mechanisms or adjustment  payments  to  reflect
25    these  costs  and  services,  including  methods by which the
26    payments may be  calculated  and  the  method  by  which  the
27    payments  may  be financed, and (ii) reimbursement mechanisms
28    or adjustment payments  to  reflect  costs  and  services  of
29    federally qualified health centers with respect to recipients
30    of medical assistance.
31        (g)  If  one  or  more  hospitals  file suit in any court
32    challenging  any  part  of  this  Article  XIV,  payments  to
33    hospitals under this Article XIV shall be made  only  to  the
34    extent  that  sufficient monies are available in the Fund and
 
                            -30-     LRB093 03019 NHT 17311 a
 1    only to the extent that  any  monies  in  the  Fund  are  not
 2    prohibited from disbursement under any order of the court.
 3        (h)  Payments    under   the   disbursement   methodology
 4    described in this Section are  subject  to  approval  by  the
 5    federal government in an appropriate State plan amendment.
 6        (i)  The   Illinois  Department  may  by  rule  establish
 7    criteria  for  and  develop  methodologies   for   adjustment
 8    payments to hospitals participating under this Article.
 9        (j)  Hospital   Residing  Long  Term  Care  Services.  In
10    addition to any other payments  made  under  this  Code,  the
11    Illinois  Department  may  by  rule  establish  criteria  and
12    develop  methodologies for payments to hospitals for Hospital
13    Residing Long Term Care Services.
14    (Source: P.A.  89-21,  eff.  7-1-95;  89-499,  eff.  6-28-96;
15    89-507,  eff.  7-1-97; 90-9, eff. 7-1-97; 90-14, eff. 7-1-97;
16    90-588, eff. 7-1-98.)

17        (305 ILCS 5/15-5) (from Ch. 23, par. 15-5)
18        Sec. 15-5. Disbursements from the Fund.
19        (a)  The monies in the Fund shall be  disbursed  only  as
20    provided in Section 15-2 of this Code and as follows:
21             (1)  To   pay   the   county   hospitals'  inpatient
22        reimbursement rate based on actual costs, trended forward
23        annually  by  an  inflation  index  and  supplemented  by
24        teaching, capital, and other direct and  indirect  costs,
25        according  to  a  State  plan  approved  by  the  federal
26        government.  Effective  October  1,  1992,  the inpatient
27        reimbursement rate  (including  any  disproportionate  or
28        supplemental   disproportionate   share   payments)   for
29        hospital  services provided by county operated facilities
30        within the County shall be no less than the reimbursement
31        rates in effect on June 1, 1992, except that this minimum
32        shall be adjusted as of July 1,  1992  and  each  July  1
33        thereafter  through July 1, 2002 by the annual percentage
 
                            -31-     LRB093 03019 NHT 17311 a
 1        change  in  the  per  diem  cost  of  inpatient  hospital
 2        services as reported in the most recent  annual  Medicaid
 3        cost  report.  Effective  July  1,  2003,  the  rate  for
 4        hospital  inpatient services provided by county hospitals
 5        shall be the rate in effect on January  1,  2003,  except
 6        that  this  minimum  may  be  adjusted  by  the  Illinois
 7        Department   to  ensure  compliance  with  aggregate  and
 8        hospital-specific federal payment limitations.
 9             (2)  To pay county  hospitals  and  county  operated
10        outpatient  facilities for outpatient services based on a
11        federally  approved  methodology  to  cover  the  maximum
12        allowable costs per patient visit. Effective  October  1,
13        1992,  the  outpatient  reimbursement rate for outpatient
14        services provided by county hospitals and county operated
15        outpatient  facilities  shall  be  no   less   than   the
16        reimbursement  rates  in  effect  on June 1, 1992, except
17        that this minimum shall be adjusted as of  July  1,  1992
18        and  each  July  1 thereafter through July 1, 2002 by the
19        annual  percentage  change  in  the  per  diem  cost   of
20        inpatient  hospital  services  as  reported  in  the most
21        recent annual Medicaid cost  report.  Effective  July  1,
22        2003,  the  Illinois  Department  shall by rule establish
23        rates  for  outpatient  services   provided   by   county
24        hospitals and other county-operated facilities within the
25        County   that   are  in  compliance  with  aggregate  and
26        hospital-specific federal payment limitations.
27             (3)  To pay the county  hospitals'  disproportionate
28        share  payments as established by the Illinois Department
29        under Section 5-5.02 of this Code. Effective  October  1,
30        1992,  the  disproportionate  share payments for hospital
31        services provided by county  operated  facilities  within
32        the  County shall be no less than the reimbursement rates
33        in effect on June 1, 1992, except that this minimum shall
34        be adjusted as of July 1, 1992 and each July 1 thereafter
 
                            -32-     LRB093 03019 NHT 17311 a
 1        through July 1, 2002 by the annual percentage  change  in
 2        the  per  diem  cost  of  inpatient  hospital services as
 3        reported in the most recent annual Medicaid cost  report.
 4        Effective  July  1,  2003, the Illinois Department may by
 5        rule establish rates for disproportionate share  payments
 6        to county hospitals that are in compliance with aggregate
 7        and hospital-specific federal payment limitations.
 8             (3.5)  To pay county providers for services provided
 9        pursuant to Section 5-11 of this Code.
10             (4)  To  reimburse the county providers for expenses
11        contractually assumed pursuant to Section  15-4  of  this
12        Code.
13             (5)  To  pay  the  Illinois Department its necessary
14        administrative expenses relative to the  Fund  and  other
15        amounts agreed to, if any, by the county providers in the
16        agreement provided for in subsection (c).
17             (6)  To  pay  the  county providers any other amount
18        due  hospitals'   supplemental   disproportionate   share
19        payments,   hereby   authorized,   as  specified  in  the
20        agreement provided for in subsection (c) and according to
21        a  federally  approved  State  plan,  including  but  not
22        limited to payments made under the provisions of  Section
23        701(d)(3)(B) of the federal Medicare, Medicaid, and SCHIP
24        Benefits   Improvement   and   Protection  Act  of  2000.
25        Intergovernmental  transfers  supporting  payments  under
26        this  paragraph  (6)  shall  not  be   subject   to   the
27        computation  described  in subsection (a) of Section 15-3
28        of this Code, but shall be  computed  as  the  difference
29        between  the  total of such payments made by the Illinois
30        Department to county providers less any amount of federal
31        financial participation due the Illinois Department under
32        Titles XIX and XXI of the Social Security Act as a result
33        of such payments to county providers.  Effective  October
34        1, 1992, the supplemental disproportionate share payments
 
                            -33-     LRB093 03019 NHT 17311 a
 1        for   hospital   services  provided  by  county  operated
 2        facilities within the County shall be no  less  than  the
 3        reimbursement  rates  in  effect  on June 1, 1992, except
 4        that this minimum shall be adjusted as of  July  1,  1992
 5        and  each  July  1  thereafter  by  the annual percentage
 6        change  in  the  per  diem  cost  of  inpatient  hospital
 7        services as reported in the most recent  annual  Medicaid
 8        cost report.
 9        (b)  The  Illinois  Department  shall  promptly  seek all
10    appropriate amendments to the Illinois State Plan  to  effect
11    the foregoing payment methodology.
12        (c)  The  Illinois Department shall implement the changes
13    made by Article 3 of this amendatory Act  of  1992  beginning
14    October   1,   1992.    All   terms  and  conditions  of  the
15    disbursement of monies from the Fund not set forth  expressly
16    in  this Article shall be set forth in the agreement executed
17    under the Intergovernmental Cooperation Act so long as  those
18    terms  and  conditions are not inconsistent with this Article
19    or applicable federal law.   The  Illinois  Department  shall
20    report   in  writing  to  the  Hospital  Service  Procurement
21    Advisory Board and the Health Care Cost  Containment  Council
22    by  October  15,  1992,  the terms and conditions of all such
23    initial agreements and, where no such initial  agreement  has
24    yet  been  executed  with  a  qualifying county, the Illinois
25    Department's reasons that each such initial agreement has not
26    been executed.  Copies  and  reports  of  amended  agreements
27    following  the  initial agreements shall likewise be filed by
28    the Illinois Department with the Hospital Service Procurement
29    Advisory Board and the Health Care Cost  Containment  Council
30    within  30  days  following  their  execution.  The foregoing
31    filing   obligations   of   the   Illinois   Department   are
32    informational  only,  to  allow  the   Board   and   Council,
33    respectively,  to  better  perform their public roles, except
34    that the Board or Council may, at its discretion, advise  the
 
                            -34-     LRB093 03019 NHT 17311 a
 1    Illinois  Department  in  the  case  of  the  failure  of the
 2    Illinois Department to reach agreement  with  any  qualifying
 3    county by the required date.
 4        (d)  The  payments  provided  for  herein are intended to
 5    cover services rendered on and after July 1,  1991,  and  any
 6    agreement  executed  between  a  qualifying  county  and  the
 7    Illinois  Department pursuant to this Section may relate back
 8    to  that  date,  provided  the  Illinois  Department  obtains
 9    federal approval.  Any changes  in  payment  rates  resulting
10    from  the  provisions  of Article 3 of this amendatory Act of
11    1992 are intended to apply to services rendered on  or  after
12    October  1,  1992,  and  any  agreement  executed  between  a
13    qualifying  county  and  the  Illinois Department pursuant to
14    this Section may be effective as of that date.
15        (e)  If one or more hospitals  file  suit  in  any  court
16    challenging   any  part  of  this  Article  XV,  payments  to
17    hospitals from the Fund under this Article XV shall  be  made
18    only  to  the  extent that sufficient monies are available in
19    the Fund and only to the extent that any monies in  the  Fund
20    are  not  prohibited  from  disbursement and may be disbursed
21    under any order of the court.
22        (f)  All payments under this Section are contingent  upon
23    federal  approval  of  changes  to  the  State  plan, if that
24    approval is required.
25    (Source: P.A. 92-370, eff. 8-15-01.)

26        (305 ILCS 5/5-7 rep.)
27        Section 15-6.  The Illinois Public Aid Code is amended by
28    repealing Section 5-7.

29                             ARTICLE 20.

30        Section 20-5.  The Alzheimer's Disease Assistance Act  is
31    amended by changing Section 7 as follows:
 
                            -35-     LRB093 03019 NHT 17311 a
 1        (410 ILCS 405/7) (from Ch. 111 1/2, par. 6957)
 2        Sec.  7.   Regional  ADA  center  funding  grants-in-aid.
 3    Pursuant  to  appropriations enacted by the General Assembly,
 4    the Department shall provide funds grants-in-aid to hospitals
 5    affiliated  with  each  Regional  ADA  Center  for  necessary
 6    research and for the development and maintenance of  services
 7    for  victims of Alzheimer's disease and related disorders and
 8    their families.  For the fiscal year beginning July 1,  2003,
 9    and   each  year  thereafter,  the  Department  shall  effect
10    payments under this Section to hospitals affiliated with each
11    Regional ADA Center through the Illinois Department of Public
12    Aid.  The Department shall include  the  annual  expenditures
13    for  this  purpose  in the plan required by Section 5 of this
14    Act. in accordance  with  the  State  Alzheimer's  Assistance
15    Plan.  The first $2,000,000 of any grants-in-aid appropriated
16    by the General Assembly for Regional ADA Centers in any State
17    fiscal year shall be distributed in equal portions  to  those
18    Regional ADA Centers receiving the appropriated grants-in-aid
19    for  the  State fiscal year beginning July 1, 1996. The first
20    $400,000 appropriated by the General Assembly  in  excess  of
21    $2,000,000  in  any  State  fiscal year beginning on or after
22    July 1, 1997 shall be distributed in equal portions to  those
23    Regional ADA Centers receiving the appropriated grants-in-aid
24    for the State fiscal year beginning July 1, 1996.  Any monies
25    appropriated  by the General Assembly in excess of $2,400,000
26    for any State fiscal year beginning on or after July 1,  1997
27    shall  be  distributed in equal portions to each Regional ADA
28    Center. The Department shall promulgate rules and  procedures
29    governing  the  distribution  and  specific purposes for such
30    grants, including any contributions of recipients of services
31    toward the cost of care.
32    (Source: P.A. 90-404, eff. 8-15-97.)

33                             ARTICLE 99.
 
                            -36-     LRB093 03019 NHT 17311 a
 1        Section 99-99.  Effective date.  This  Act  takes  effect
 2    upon becoming law.".