HB689

Establishes a Medicaid state-directed payment program to improve care for Medicaid beneficiaries.

The bill establishes a Medicaid state-directed payment program to enhance care for Medicaid beneficiaries. It requires the Department for Medicaid Services to submit a Medicaid preprint to the federal Centers for Medicare and Medicaid Services for authorization. If approved, qualifying hospitals can earn enhanced add-on payments from Medicaid managed care organizations. These payments are based on the qualifying hospital's average commercial rate for services provided. The program is separate from other state-directed payment programs and requires a distinct funding source.