Preliminary Budget Recommendations
FY2009 Enhancements – Medicaid Benefits
The ACCESS Healthcare Coalition supports the Georgia Department of Community Health's recent proposal to increase annual medicaid funding by more than $40 million. Following is a summary of the DCH's proposal.
1. Inpatient Hospital Services
Using FY2005 cost reports:
- Increase cost coverage from 93.6% to 97.5% for Trauma Hospitals
- Increase cost coverage from 91.0% to 93.5% for Non-Trauma hospitals
Date of last increase for inpatient hospitals was FY2003 with rate reductions in FY2004 and FY2006.
Cost: $46.6 million total funds; $16.8 million state funds*
* Includes the cost to increase rates in PeachCare for Children.
2. Outpatient Hospital Services
Use facility-wide Cost-to-charge ratios to determine cost:
- 100% of cost for Trauma Hospitals
- 95% of cost for Non-Trauma hospitals
- Assume 2.5% average increase in rates linked to RBRVS
- Increase triage fee for non-emergent use of the ER to $60
- Increase cap on outpatient services based on increases in inpatient services
Date of last increase for Outpatient Hospital was FY2002 with rate reductions in FY2005 and FY2006.
Cost: $16.9 million total funds; $6.8 million state funds*
* Includes the cost to increase rates in PeachCare for Kids.
3. Physician and Physician Related Services
Change the maximum allowable reimbursement to 88.5% of 2007 RBRVS as specified by Medicare for Georgia Area 1 (Atlanta).
- Services provided by a physician’s assistant and advanced nurse practitioner will be limited to no more than 90% of the maximum allowable amount paid to a physician.
- Covers the following practitioners and services: Physician, Physician Assistant, Nurse Midwife, Advanced Nurse Practitioner, Family Planning, Podiatry, Oral Surgery, Children’s Intervention Services, Children’s Intervention School Services, Psychology, Dialysis Professional Services and Vision.
Currently based on the 84.6% of 2000 RBRVS with the date of last increase in FY2003 and a 10% rate reduction in FY2004.
Cost: $24.2 million total funds; $10.0 million state funds *
* Includes the cost to increase rates in PeachCare for Kids.
4. Nursing Homes
- Provide an additional 1% add-on to the nursing services component of the per diem for facilities that meet the requirements of the Quality Incentive Program.
Date of last rate increase for nursing homes was FY2008.
Costs: $5 million total funds; $1.8 million state funds |