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HB2771 Enrolled                       LRB104 08638 BDA 18691 b

1   AN ACT concerning health.

2   Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4   Section 5. The Illinois Administrative Procedure Act is

5 amended by adding Section 5-45.65 as follows:

6   (5 ILCS 100/5-45.65 new)

7   Sec. 5-45.65. Emergency rulemaking; Medicaid reimbursement

8 rates for hospital inpatient and outpatient services. To

9 provide for the expeditious and timely implementation of the

10 changes made by this amendatory Act of the 104th General

11 Assembly to Sections 5A-2, 5A-7, 5A-8, 5A-10, and 5A-12.7 of

12 the Illinois Public Aid Code, emergency rules implementing the

13 changes made by this amendatory Act of the 104th General

14 Assembly to Sections 5A-2, 5A-7, 5A-8, 5A-10, and 5A-12.7 of

15 the Illinois Public Aid Code may be adopted in accordance with

16 Section 5-45 by the Department of Healthcare and Family

17 Services. The adoption of emergency rules authorized by

18 Section 5-45 and this Section is deemed necessary for the

19 public interest, safety, and welfare.

20  This Section is repealed one year after the effective date

21 of this amendatory Act of the 104th General Assembly.

22  Section 10. The Illinois Public Aid Code is amended by
    HB2771 Enrolled         -2-  LRB104 08638 BDA 18691 b

1 changing Sections 5A-2, 5A-5, 5A-7, 5A-8, 5A-10, 5A-12.7,
2 5A-14, and 12-4.105 as follows:

3   (305 ILCS 5/5A-2) (from Ch. 23, par. 5A-2)

4   (Section scheduled to be repealed on December 31, 2026)

5   Sec. 5A-2. Assessment.

6   (a)(1) Subject to Sections 5A-3 and 5A-10, for State

7 fiscal years 2009 through 2018, or as long as continued under

8 Section 5A-16, an annual assessment on inpatient services is

9 imposed on each hospital provider in an amount equal to

10 $218.38 multiplied by the difference of the hospital's

11 occupied bed days less the hospital's Medicare bed days,

12 provided, however, that the amount of $218.38 shall be

13 increased by a uniform percentage to generate an amount equal

14 to 75% of the State share of the payments authorized under

15 Section 5A-12.5, with such increase only taking effect upon

16 the date that a State share for such payments is required under

17 federal law. For the period of April through June 2015, the

18 amount of $218.38 used to calculate the assessment under this

19 paragraph shall, by emergency rule under subsection (s) of

20 Section 5-45 of the Illinois Administrative Procedure Act, be

21 increased by a uniform percentage to generate $20,250,000 in

22 the aggregate for that period from all hospitals subject to

23 the annual assessment under this paragraph.

24  (2) In addition to any other assessments imposed under

25 this Article, effective July 1, 2016 and semi-annually
    HB2771 Enrolled  -3-             LRB104 08638 BDA 18691 b

1 thereafter through June 2018, or as provided in Section 5A-16,

2 in addition to any federally required State share as

3 authorized under paragraph (1), the amount of $218.38 shall be

4 increased by a uniform percentage to generate an amount equal

5 to 75% of the ACA Assessment Adjustment, as defined in

6 subsection (b-6) of this Section.

7   For State fiscal years 2009 through 2018, or as provided

8 in Section 5A-16, a hospital's occupied bed days and Medicare

9 bed days shall be determined using the most recent data

10 available from each hospital's 2005 Medicare cost report as

11 contained in the Healthcare Cost Report Information System

12 file, for the quarter ending on December 31, 2006, without

13 regard to any subsequent adjustments or changes to such data.

14 If a hospital's 2005 Medicare cost report is not contained in

15 the Healthcare Cost Report Information System, then the

16 Illinois Department may obtain the hospital provider's

17 occupied bed days and Medicare bed days from any source

18 available, including, but not limited to, records maintained

19 by the hospital provider, which may be inspected at all times

20 during business hours of the day by the Illinois Department or

21 its duly authorized agents and employees.

22  (3) Subject to Sections 5A-3, 5A-10, and 5A-16, for State

23 fiscal years 2019 and 2020, an annual assessment on inpatient

24 services is imposed on each hospital provider in an amount

25 equal to $197.19 multiplied by the difference of the

26 hospital's occupied bed days less the hospital's Medicare bed
    HB2771 Enrolled  -4-  LRB104 08638 BDA 18691 b

1 days. For State fiscal years 2019 and 2020, a hospital's

2 occupied bed days and Medicare bed days shall be determined

3 using the most recent data available from each hospital's 2015

4 Medicare cost report as contained in the Healthcare Cost

5 Report Information System file, for the quarter ending on

6 March 31, 2017, without regard to any subsequent adjustments

7 or changes to such data. If a hospital's 2015 Medicare cost

8 report is not contained in the Healthcare Cost Report

9 Information System, then the Illinois Department may obtain

10 the hospital provider's occupied bed days and Medicare bed

11 days from any source available, including, but not limited to,

12 records maintained by the hospital provider, which may be

13 inspected at all times during business hours of the day by the

14 Illinois Department or its duly authorized agents and

15 employees. Notwithstanding any other provision in this

16 Article, for a hospital provider that did not have a 2015

17 Medicare cost report, but paid an assessment in State fiscal

18 year 2018 on the basis of hypothetical data, that assessment

19 amount shall be used for State fiscal years 2019 and 2020.

20  (4) Subject to Sections 5A-3 and 5A-10 and to subsection

21 (b-8), for the period of July 1, 2020 through December 31, 2020

22 and calendar years 2021 through 2024 2026, an annual

23 assessment on inpatient services is imposed on each hospital

24 provider in an amount equal to $221.50 multiplied by the

25 difference of the hospital's occupied bed days less the

26 hospital's Medicare bed days, provided however: for the period
HB2771 Enrolled  -5-  LRB104 08638 BDA 18691 b

 1 of July 1, 2020 through December 31, 2020, (i) the assessment
 2 shall be equal to 50% of the annual amount; and (ii) the amount
 3 of $221.50 shall be retroactively adjusted by a uniform
 4 percentage to generate an amount equal to 50% of the
 5 Assessment Adjustment, as defined in subsection (b-7). For the
 6 period of July 1, 2020 through December 31, 2020 and calendar
 7 years 2021 through 2024 2026, a hospital's occupied bed days
 8 and Medicare bed days shall be determined using the most
 9 recent data available from each hospital's 2015 Medicare cost
10 report as contained in the Healthcare Cost Report Information
11 System file, for the quarter ending on March 31, 2017, without
12 regard to any subsequent adjustments or changes to such data.
13 If a hospital's 2015 Medicare cost report is not contained in
14 the Healthcare Cost Report Information System, then the
15 Illinois Department may obtain the hospital provider's
16 occupied bed days and Medicare bed days from any source
17 available, including, but not limited to, records maintained
18 by the hospital provider, which may be inspected at all times
19 during business hours of the day by the Illinois Department or
20 its duly authorized agents and employees. Should the change in
21 the assessment methodology for fiscal years 2021 through
22 December 31, 2022 not be approved on or before June 30, 2020,
23 the assessment and payments under this Article in effect for
24 fiscal year 2020 shall remain in place until the new
25 assessment is approved. If the assessment methodology for July
26 1, 2020 through December 31, 2022, is approved on or after July
HB2771 Enrolled  -6-  LRB104 08638 BDA 18691 b

 1 1, 2020, it shall be retroactive to July 1, 2020, subject to
 2 federal approval and provided that the payments authorized
 3 under Section 5A-12.7 have the same effective date as the new
 4 assessment methodology. In giving retroactive effect to the
 5 assessment approved after June 30, 2020, credit toward the new
 6 assessment shall be given for any payments of the previous
 7 assessment for periods after June 30, 2020. Notwithstanding
 8 any other provision of this Article, for a hospital provider
 9 that did not have a 2015 Medicare cost report, but paid an
10 assessment in State Fiscal Year 2020 on the basis of
11 hypothetical data, the data that was the basis for the 2020
12 assessment shall be used to calculate the assessment under
13 this paragraph until December 31, 2023. Beginning July 1, 2022
14 and through December 31, 2024, a safety-net hospital that had
15 a change of ownership in calendar year 2021, and whose
16 inpatient utilization had decreased by 90% from the prior year
17 and prior to the change of ownership, may be eligible to pay a
18 tax based on hypothetical data based on a determination of
19 financial distress by the Department. Subject to federal
20 approval, the Department may, by January 1, 2024, develop a
21 hypothetical tax for a specialty cancer hospital which had a
22 structural change of ownership during calendar year 2022 from
23 a for-profit entity to a non-profit entity, and which has
24 experienced a decline of 60% or greater in inpatient days of
25 care as compared to the prior owners 2015 Medicare cost
26 report. This change of ownership may make the hospital
    HB2771 Enrolled           -7-  LRB104 08638 BDA 18691 b

1 eligible for a hypothetical tax under the new hospital

2 provision of the assessment defined in this Section. This new

3 hypothetical tax may be applicable from January 1, 2024

4 through December 31, 2026.

5   (5) Subject to Sections 5A-3 and 5A-10, beginning January

6 1, 2025, an annual assessment on inpatient services is imposed

7 on each hospital provider in an amount equal to $362, or any

8 reduction thereof in accordance with this subsection,

9 multiplied by the difference of the hospital's occupied bed

10 days less the hospital's Medicare bed days; however, the rate

11 shall be $221.50 until the Department receives federal

12 approval and implements the reimbursement rates in subsection

13 (r) of Section 5A-12.7. The Department may bill for the

14 difference between the assessment rate of $362, or any

15 reduction thereof in accordance with this subsection, and

16 $221.50 no earlier than 17 calendar days after implementing

17 the reimbursement rates in subsection (r) of Section 5A-12.7.

18  (A) Upon receiving federal approval for the

19  reimbursement rates in subsection (r) of Section 5A-12.7,

20  the Department shall bill the hospital for the incremental

21  difference in total tax due resulting from the increase

22  provided in this subsection for the number of months from

23  January 1, 2025 through the date of federal approval. The

24  amount shall be due and payable no later than December 31,

25  2025 and no earlier than 17 calendar days after

26  implementing the reimbursement rates in subsection (r) of
    HB2771 Enrolled   -8-               LRB104 08638 BDA 18691 b

1   Section 5A-12.7. The Department shall bill hospitals in

2   the same proportional rate as the Department has

3   implemented the inpatient reimbursement rates in

4   subsection (r) of Section 5A-12.7.

5   (B) Beginning January 1, 2025, a hospital's occupied

6   bed days and Medicare bed days shall be determined using

7   the most recent data available from each hospital's 2015

8   Medicare cost report as contained in the Healthcare Cost

9   Report Information System file, for the quarter ending on

10  March 31, 2017, without regard to any subsequent

11  adjustments or changes to such data. If a hospital's 2015

12  Medicare cost report is not contained in the Healthcare

13  Cost Report Information System, then the Department may

14  obtain the hospital provider's occupied bed days and

15  Medicare bed days from any source available, including,

16  but not limited to, records maintained by the hospital

17  provider, which may be inspected at all times during

18  business hours of the day by the Department or its duly

19  authorized agents and employees. If the reimbursement

20  rates in subsection (r) of Section 5A-12.7 require

21  reduction to comply with federal spending limits, then the

22  tax rate of $362 shall be reduced, in accordance with

23  subsection (s) of Section 5A-12.7, by the same percentage

24  reduction to payments required to comply with federal

25  spending limits.

26  (b) (Blank).
    HB2771 Enrolled  -9-             LRB104 08638 BDA 18691 b

1   (b-5)(1) Subject to Sections 5A-3 and 5A-10, for the

2 portion of State fiscal year 2012, beginning June 10, 2012

3 through June 30, 2012, and for State fiscal years 2013 through

4 2018, or as provided in Section 5A-16, an annual assessment on

5 outpatient services is imposed on each hospital provider in an

6 amount equal to .008766 multiplied by the hospital's

7 outpatient gross revenue, provided, however, that the amount

8 of .008766 shall be increased by a uniform percentage to

9 generate an amount equal to 25% of the State share of the

10 payments authorized under Section 5A-12.5, with such increase

11 only taking effect upon the date that a State share for such

12 payments is required under federal law. For the period

13 beginning June 10, 2012 through June 30, 2012, the annual

14 assessment on outpatient services shall be prorated by

15 multiplying the assessment amount by a fraction, the numerator

16 of which is 21 days and the denominator of which is 365 days.

17 For the period of April through June 2015, the amount of

18 .008766 used to calculate the assessment under this paragraph

19 shall, by emergency rule under subsection (s) of Section 5-45

20 of the Illinois Administrative Procedure Act, be increased by

21 a uniform percentage to generate $6,750,000 in the aggregate

22 for that period from all hospitals subject to the annual

23 assessment under this paragraph.

24  (2) In addition to any other assessments imposed under

25 this Article, effective July 1, 2016 and semi-annually

26 thereafter through June 2018, in addition to any federally
    HB2771 Enrolled  - 10 - LRB104 08638 BDA 18691 b

1 required State share as authorized under paragraph (1), the

2 amount of .008766 shall be increased by a uniform percentage

3 to generate an amount equal to 25% of the ACA Assessment

4 Adjustment, as defined in subsection (b-6) of this Section.

5   For the portion of State fiscal year 2012, beginning June

6 10, 2012 through June 30, 2012, and State fiscal years 2013

7 through 2018, or as provided in Section 5A-16, a hospital's

8 outpatient gross revenue shall be determined using the most

9 recent data available from each hospital's 2009 Medicare cost

10 report as contained in the Healthcare Cost Report Information

11 System file, for the quarter ending on June 30, 2011, without

12 regard to any subsequent adjustments or changes to such data.

13 If a hospital's 2009 Medicare cost report is not contained in

14 the Healthcare Cost Report Information System, then the

15 Department may obtain the hospital provider's outpatient gross

16 revenue from any source available, including, but not limited

17 to, records maintained by the hospital provider, which may be

18 inspected at all times during business hours of the day by the

19 Department or its duly authorized agents and employees.

20  (3) Subject to Sections 5A-3, 5A-10, and 5A-16, for State

21 fiscal years 2019 and 2020, an annual assessment on outpatient

22 services is imposed on each hospital provider in an amount

23 equal to .01358 multiplied by the hospital's outpatient gross

24 revenue. For State fiscal years 2019 and 2020, a hospital's

25 outpatient gross revenue shall be determined using the most

26 recent data available from each hospital's 2015 Medicare cost
    HB2771 Enrolled  - 11 - LRB104 08638 BDA 18691 b

1 report as contained in the Healthcare Cost Report Information

2 System file, for the quarter ending on March 31, 2017, without

3 regard to any subsequent adjustments or changes to such data.

4 If a hospital's 2015 Medicare cost report is not contained in

5 the Healthcare Cost Report Information System, then the

6 Department may obtain the hospital provider's outpatient gross

7 revenue from any source available, including, but not limited

8 to, records maintained by the hospital provider, which may be

9 inspected at all times during business hours of the day by the

10 Department or its duly authorized agents and employees.

11 Notwithstanding any other provision in this Article, for a

12 hospital provider that did not have a 2015 Medicare cost

13 report, but paid an assessment in State fiscal year 2018 on the

14 basis of hypothetical data, that assessment amount shall be

15 used for State fiscal years 2019 and 2020.

16  (4) Subject to Sections 5A-3 and 5A-10 and to subsection

17 (b-8), for the period of July 1, 2020 through December 31, 2020

18 and calendar years 2021 through 2024 2026, an annual

19 assessment on outpatient services is imposed on each hospital

20 provider in an amount equal to .01525 multiplied by the

21 hospital's outpatient gross revenue, provided however: (i) for

22 the period of July 1, 2020 through December 31, 2020, the

23 assessment shall be equal to 50% of the annual amount; and (ii)

24 the amount of .01525 shall be retroactively adjusted by a

25 uniform percentage to generate an amount equal to 50% of the

26 Assessment Adjustment, as defined in subsection (b-7). For the
HB2771 Enrolled  - 12 - LRB104 08638 BDA 18691 b

 1 period of July 1, 2020 through December 31, 2020 and calendar
 2 years 2021 through 2024 2026, a hospital's outpatient gross
 3 revenue shall be determined using the most recent data
 4 available from each hospital's 2015 Medicare cost report as
 5 contained in the Healthcare Cost Report Information System
 6 file, for the quarter ending on March 31, 2017, without regard
 7 to any subsequent adjustments or changes to such data. If a
 8 hospital's 2015 Medicare cost report is not contained in the
 9 Healthcare Cost Report Information System, then the Illinois
10 Department may obtain the hospital provider's outpatient
11 revenue data from any source available, including, but not
12 limited to, records maintained by the hospital provider, which
13 may be inspected at all times during business hours of the day
14 by the Illinois Department or its duly authorized agents and
15 employees. Should the change in the assessment methodology
16 above for fiscal years 2021 through calendar year 2022 not be
17 approved prior to July 1, 2020, the assessment and payments
18 under this Article in effect for fiscal year 2020 shall remain
19 in place until the new assessment is approved. If the change in
20 the assessment methodology above for July 1, 2020 through
21 December 31, 2022, is approved after June 30, 2020, it shall
22 have a retroactive effective date of July 1, 2020, subject to
23 federal approval and provided that the payments authorized
24 under Section 12A-7 have the same effective date as the new
25 assessment methodology. In giving retroactive effect to the
26 assessment approved after June 30, 2020, credit toward the new
    HB2771 Enrolled  - 13 - LRB104 08638 BDA 18691 b

1 assessment shall be given for any payments of the previous

2 assessment for periods after June 30, 2020. Notwithstanding

3 any other provision of this Article, for a hospital provider

4 that did not have a 2015 Medicare cost report, but paid an

5 assessment in State Fiscal Year 2020 on the basis of

6 hypothetical data, the data that was the basis for the 2020

7 assessment shall be used to calculate the assessment under

8 this paragraph until December 31, 2023. Beginning July 1, 2022

9 and through December 31, 2024, a safety-net hospital that had

10 a change of ownership in calendar year 2021, and whose

11 inpatient utilization had decreased by 90% from the prior year

12 and prior to the change of ownership, may be eligible to pay a

13 tax based on hypothetical data based on a determination of

14 financial distress by the Department.

15  (5) Subject to Sections 5A-3 and 5A-10, beginning January

16 1, 2025, an annual assessment on outpatient services is

17 imposed on each hospital provider in an amount equal to

18 .03273, or any reduction thereof in accordance with this

19 subsection, multiplied by the hospital's outpatient gross

20 revenue; however the rate shall remain .01525, until the

21 Department receives federal approval and implements the

22 reimbursement rates of payment in subsection (r) of Section

23 5A-12.7. The Department may bill for the difference between

24 the assessment multiplier of .03273 and .01525 no earlier than

25 17 calendar days after the first payment based on the

26 reimbursement rates in subsection (r) of Section 5A-12.7.
    HB2771 Enrolled  - 14 - LRB104 08638 BDA 18691 b

1   (A) Upon receiving federal approval for the

2   reimbursement rates in subsection (r) of Section 5A-12.7,

3   the Department shall bill the hospital for the incremental

4   difference in total tax due resulting from the increase

5   provided in this subsection for the number of months from

6   January 1, 2025 through the date of federal approval. The

7   amount shall be due and payable no later than December 31,

8   2025 and no earlier than 17 calendar days after

9   implementing the reimbursement rates in subsection (r) of

10  Section 5A-12.7. The Department shall bill hospitals in

11  the same proportional rate as the Department has

12  implemented the outpatient reimbursement rates in

13  subsection (r) of Section 5A-12.7.

14  (B) Beginning January 1, 2025, a hospital's outpatient

15  gross revenue shall be determined using the most recent

16  data available from each hospital's 2015 Medicare cost

17  report as contained in the Healthcare Cost Report

18  Information System file, for the quarter ending on March

19  31, 2017, without regard to any subsequent adjustments or

20  changes to such data. If a hospital's 2015 Medicare cost

21  report is not contained in the Healthcare Cost Report

22  Information System, then the Department may obtain the

23  hospital provider's outpatient revenue data from any

24  source available, including, but not limited to, records

25  maintained by the hospital provider, which may be

26  inspected at all times during business hours of the day by
    HB2771 Enrolled   - 15 - LRB104 08638 BDA 18691 b

1   the Department or its duly authorized agents and

2   employees. If the reimbursement rates in subsection (r) of

3   Section 5A-12.7 require reduction to comply with federal

4   spending limits, then the tax rate of .03273 shall be

5   reduced, in accordance with subsection (s) of Section

6   5A-12.7, by the same percentage reduction to payments

7   required to comply with federal spending limits.

8   (b-6)(1) As used in this Section, "ACA Assessment

9 Adjustment" means:

10  (A) For the period of July 1, 2016 through December

11  31, 2016, the product of .19125 multiplied by the sum of

12  the fee-for-service payments to hospitals as authorized

13  under Section 5A-12.5 and the adjustments authorized under

14  subsection (t) of Section 5A-12.2 to managed care

15  organizations for hospital services due and payable in the

16  month of April 2016 multiplied by 6.

17  (B) For the period of January 1, 2017 through June 30,

18  2017, the product of .19125 multiplied by the sum of the

19  fee-for-service payments to hospitals as authorized under

20  Section 5A-12.5 and the adjustments authorized under

21  subsection (t) of Section 5A-12.2 to managed care

22  organizations for hospital services due and payable in the

23  month of October 2016 multiplied by 6, except that the

24  amount calculated under this subparagraph (B) shall be

25  adjusted, either positively or negatively, to account for

26  the difference between the actual payments issued under
    HB2771 Enrolled  - 16 - LRB104 08638 BDA 18691 b

1   Section 5A-12.5 for the period beginning July 1, 2016

2   through December 31, 2016 and the estimated payments due

3   and payable in the month of April 2016 multiplied by 6 as

4   described in subparagraph (A).

5   (C) For the period of July 1, 2017 through December

6   31, 2017, the product of .19125 multiplied by the sum of

7   the fee-for-service payments to hospitals as authorized

8   under Section 5A-12.5 and the adjustments authorized under

9   subsection (t) of Section 5A-12.2 to managed care

10  organizations for hospital services due and payable in the

11  month of April 2017 multiplied by 6, except that the

12  amount calculated under this subparagraph (C) shall be

13  adjusted, either positively or negatively, to account for

14  the difference between the actual payments issued under

15  Section 5A-12.5 for the period beginning January 1, 2017

16  through June 30, 2017 and the estimated payments due and

17  payable in the month of October 2016 multiplied by 6 as

18  described in subparagraph (B).

19  (D) For the period of January 1, 2018 through June 30,

20  2018, the product of .19125 multiplied by the sum of the

21  fee-for-service payments to hospitals as authorized under

22  Section 5A-12.5 and the adjustments authorized under

23  subsection (t) of Section 5A-12.2 to managed care

24  organizations for hospital services due and payable in the

25  month of October 2017 multiplied by 6, except that:

26  (i) the amount calculated under this subparagraph
    HB2771 Enrolled          - 17 - LRB104 08638 BDA 18691 b

1   (D) shall be adjusted, either positively or

2   negatively, to account for the difference between the

3   actual payments issued under Section 5A-12.5 for the

4   period of July 1, 2017 through December 31, 2017 and

5   the estimated payments due and payable in the month of

6   April 2017 multiplied by 6 as described in

7   subparagraph (C); and

8   (ii) the amount calculated under this subparagraph

9   (D) shall be adjusted to include the product of .19125

10  multiplied by the sum of the fee-for-service payments,

11  if any, estimated to be paid to hospitals under

12  subsection (b) of Section 5A-12.5.

13  (2) The Department shall complete and apply a final

14 reconciliation of the ACA Assessment Adjustment prior to June

15 30, 2018 to account for:

16  (A) any differences between the actual payments issued

17  or scheduled to be issued prior to June 30, 2018 as

18  authorized in Section 5A-12.5 for the period of January 1,

19  2018 through June 30, 2018 and the estimated payments due

20  and payable in the month of October 2017 multiplied by 6 as

21  described in subparagraph (D); and

22  (B) any difference between the estimated

23  fee-for-service payments under subsection (b) of Section

24  5A-12.5 and the amount of such payments that are actually

25  scheduled to be paid.

26  The Department shall notify hospitals of any additional
    HB2771 Enrolled  - 18 - LRB104 08638 BDA 18691 b

1 amounts owed or reduction credits to be applied to the June

2 2018 ACA Assessment Adjustment. This is to be considered the

3 final reconciliation for the ACA Assessment Adjustment.

4   (3) Notwithstanding any other provision of this Section,

5 if for any reason the scheduled payments under subsection (b)

6 of Section 5A-12.5 are not issued in full by the final day of

7 the period authorized under subsection (b) of Section 5A-12.5,

8 funds collected from each hospital pursuant to subparagraph

9 (D) of paragraph (1) and pursuant to paragraph (2),

10 attributable to the scheduled payments authorized under

11 subsection (b) of Section 5A-12.5 that are not issued in full

12 by the final day of the period attributable to each payment

13 authorized under subsection (b) of Section 5A-12.5, shall be

14 refunded.

15  (4) The increases authorized under paragraph (2) of

16 subsection (a) and paragraph (2) of subsection (b-5) shall be

17 limited to the federally required State share of the total

18 payments authorized under Section 5A-12.5 if the sum of such

19 payments yields an annualized amount equal to or less than

20 $450,000,000, or if the adjustments authorized under

21 subsection (t) of Section 5A-12.2 are found not to be

22 actuarially sound; however, this limitation shall not apply to

23 the fee-for-service payments described in subsection (b) of

24 Section 5A-12.5.

25  (b-7)(1) As used in this Section, "Assessment Adjustment"

26 means:
    HB2771 Enrolled          - 19 - LRB104 08638 BDA 18691 b

1   (A) For the period of July 1, 2020 through December

2   31, 2020, the product of .3853 multiplied by the total of

3   the actual payments made under subsections (c) through (k)

4   of Section 5A-12.7 attributable to the period, less the

5   total of the assessment imposed under subsections (a) and

6   (b-5) of this Section for the period.

7   (B) For each calendar quarter beginning January 1,

8   2021 through December 31, 2022, the product of .3853

9   multiplied by the total of the actual payments made under

10  subsections (c) through (k) of Section 5A-12.7

11  attributable to the period, less the total of the

12  assessment imposed under subsections (a) and (b-5) of this

13  Section for the period.

14  (C) Beginning on January 1, 2023, and each subsequent

15  July 1 and January 1, the product of .3853 multiplied by

16  the total of the actual payments made under subsections

17  (c) through (j) and subsection (r) of Section 5A-12.7

18  attributable to the 6-month period immediately preceding

19  the period to which the adjustment applies, less the total

20  of the assessment imposed under subsections (a) and (b-5)

21  of this Section for the 6-month period immediately

22  preceding the period to which the adjustment applies.

23  (2) The Department shall calculate and notify each

24 hospital of the total Assessment Adjustment and any additional

25 assessment owed by the hospital or refund owed to the hospital

26 on either a semi-annual or annual basis. Such notice shall be
    HB2771 Enrolled  - 20 - LRB104 08638 BDA 18691 b

1 issued at least 30 days prior to any period in which the

2 assessment will be adjusted. Any additional assessment owed by

3 the hospital or refund owed to the hospital shall be uniformly

4 applied to the assessment owed by the hospital in monthly

5 installments for the subsequent semi-annual period or calendar

6 year. If no assessment is owed in the subsequent year, any

7 amount owed by the hospital or refund due to the hospital,

8 shall be paid in a lump sum. If the calculation that is

9 computed under this Section could result in a decrease in the

10 Department's federal financial participation percentage for

11 payments authorized under Section 5A-12.7, then the Department

12 shall instead apply a uniform percentage reduction to the

13 payment rates outlined in subsection (r) of Section 5A-12.7

14 for all classes as defined in subsections (g) and (h) of

15 Section 5A-12.7 by an amount no more than necessary to

16 maximize federal reimbursement.

17  (3) The Department shall publish all details of the

18 Assessment Adjustment calculation performed each year on its

19 website within 30 days of completing the calculation, and also

20 submit the details of the Assessment Adjustment calculation as

21 part of the Department's annual report to the General

22 Assembly.

23  (b-8) Notwithstanding any other provision of this Article,

24 the Department shall reduce the assessments imposed on each

25 hospital under subsections (a) and (b-5) by the uniform

26 percentage necessary to reduce the total assessment imposed on
    HB2771 Enrolled  - 21 - LRB104 08638 BDA 18691 b

1 all hospitals by an aggregate amount of $240,000,000, with

2 such reduction being applied by June 30, 2022. The assessment

3 reduction required for each hospital under this subsection

4 shall be forever waived, forgiven, and released by the

5 Department.

6   (c) (Blank).

7   (d) Notwithstanding any of the other provisions of this

8 Section, the Department is authorized to adopt rules to reduce

9 the rate of any annual assessment imposed under this Section,

10 as authorized by Section 5-46.2 of the Illinois Administrative

11 Procedure Act.

12  (e) Notwithstanding any other provision of this Section,

13 any plan providing for an assessment on a hospital provider as

14 a permissible tax under Title XIX of the federal Social

15 Security Act and Medicaid-eligible payments to hospital

16 providers from the revenues derived from that assessment shall

17 be reviewed by the Illinois Department of Healthcare and

18 Family Services, as the Single State Medicaid Agency required

19 by federal law, to determine whether those assessments and

20 hospital provider payments meet federal Medicaid standards. If

21 the Department determines that the elements of the plan may

22 meet federal Medicaid standards and a related State Medicaid

23 Plan Amendment is prepared in a manner and form suitable for

24 submission, that State Plan Amendment shall be submitted in a

25 timely manner for review by the Centers for Medicare and

26 Medicaid Services of the United States Department of Health
    HB2771 Enrolled  - 22 - LRB104 08638 BDA 18691 b

1 and Human Services and subject to approval by the Centers for

2 Medicare and Medicaid Services of the United States Department

3 of Health and Human Services. No such plan shall become

4 effective without approval by the Illinois General Assembly by

5 the enactment into law of related legislation. Notwithstanding

6 any other provision of this Section, the Department is

7 authorized to adopt rules to reduce the rate of any annual

8 assessment imposed under this Section. Any such rules may be

9 adopted by the Department under Section 5-50 of the Illinois

10 Administrative Procedure Act.

11  (f) To provide for the expeditious and timely

12 implementation of the changes made to this Section by this

13 amendatory Act of the 104th General Assembly, the Department

14 may adopt emergency rules as authorized by Section 5-45 of the

15 Illinois Administrative Procedure Act. The adoption of

16 emergency rules is deemed to be necessary for the public

17 interest, safety, and welfare.

18 (Source: P.A. 102-886, eff. 5-17-22; 103-102, eff. 1-1-24.)

19  (305 ILCS 5/5A-5) (from Ch. 23, par. 5A-5)

20  Sec. 5A-5. Notice; penalty; maintenance of records.

21  (a) The Illinois Department shall send a notice of

22 assessment to every hospital provider subject to assessment

23 under this Article. The notice of assessment shall notify the

24 hospital of its assessment and shall be sent after receipt by

25 the Department of notification from the Centers for Medicare
    HB2771 Enrolled       - 23 - LRB104 08638 BDA 18691 b

1 and Medicaid Services of the U.S. Department of Health and

2 Human Services that the payment methodologies required under

3 this Article and, if necessary, the waiver granted under 42

4 CFR 433.68 have been approved. The notice shall be on a form

5 prepared by the Illinois Department and shall state the

6 following:

7   (1) The name of the hospital provider.

8   (2) The address of the hospital provider's principal

9   place of business from which the provider engages in the

10  occupation of hospital provider in this State, and the

11  name and address of each hospital operated, conducted, or

12  maintained by the provider in this State.

13  (3) The occupied bed days, occupied bed days less

14  Medicare days, adjusted gross hospital revenue, or

15  outpatient gross revenue of the hospital provider

16  (whichever is applicable), the amount of assessment

17  imposed under Section 5A-2 for the State fiscal year for

18  which the notice is sent, and the amount of each

19  installment to be paid during the State fiscal year.

20  (4) (Blank).

21  (5) Other reasonable information as determined by the

22  Illinois Department.

23  (b) If a hospital provider conducts, operates, or

24 maintains more than one hospital licensed by the Illinois

25 Department of Public Health, the provider shall pay the

26 assessment for each hospital separately.
    HB2771 Enrolled   - 24 - LRB104 08638 BDA 18691 b

1   (c) Notwithstanding any other provision in this Article,

2 in the case of a person who ceases to conduct, operate, or

3 maintain a hospital in respect of which the person is subject

4 to assessment under this Article as a hospital provider, the

5 assessment for the State fiscal year in which the cessation

6 occurs shall be adjusted by multiplying the assessment

7 computed under Section 5A-2 by a fraction, the numerator of

8 which is the number of days in the year during which the

9 provider conducts, operates, or maintains the hospital and the

10 denominator of which is 365. Immediately upon ceasing to

11 conduct, operate, or maintain a hospital, the person shall pay

12 the assessment for the year as so adjusted (to the extent not

13 previously paid).

14  (d) Notwithstanding any other provision in this Article, a

15 provider who commences conducting, operating, or maintaining a

16 hospital, upon notice by the Illinois Department, shall pay

17 the assessment computed under Section 5A-2 and subsection (e)

18 in installments on the due dates stated in the notice and on

19 the regular installment due dates for the State fiscal year

20 occurring after the due dates of the initial notice.

21  (e) Notwithstanding any other provision in this Article,

22 for State fiscal years 2009 through 2018, in the case of a

23 hospital provider that did not conduct, operate, or maintain a

24 hospital in 2005, the assessment for that State fiscal year

25 shall be computed on the basis of hypothetical occupied bed

26 days for the full calendar year as determined by the Illinois
    HB2771 Enrolled  - 25 - LRB104 08638 BDA 18691 b

1 Department. Notwithstanding any other provision in this

2 Article, for the portion of State fiscal year 2012 beginning

3 June 10, 2012 through June 30, 2012, and for State fiscal years

4 2013 through 2018, in the case of a hospital provider that did

5 not conduct, operate, or maintain a hospital in 2009, the

6 assessment under subsection (b-5) of Section 5A-2 for that

7 State fiscal year shall be computed on the basis of

8 hypothetical gross outpatient revenue for the full calendar

9 year as determined by the Illinois Department.

10  Notwithstanding any other provision in this Article,

11 beginning July 1, 2018 through December 31, 2026, in the case

12 of a hospital provider that did not conduct, operate, or

13 maintain a hospital in the year that is the basis of the

14 calculation of the assessment under this Article, the

15 assessment under paragraph (3) of subsection (a) of Section

16 5A-2 for the State fiscal year shall be computed on the basis

17 of hypothetical occupied bed days for the full calendar year

18 as determined by the Illinois Department, except that for a

19 hospital provider that did not have a 2015 Medicare cost

20 report, but paid an assessment in State fiscal year 2018 on the

21 basis of hypothetical data, that assessment amount shall be

22 used for State fiscal years 2019 and 2020; however, for State

23 fiscal year 2020, the assessment amount shall be increased by

24 the proportion that it represents of the total annual

25 assessment that is generated from all hospitals in order to

26 generate $6,250,000 in the aggregate for that period from all
    HB2771 Enrolled  - 26 - LRB104 08638 BDA 18691 b

1 hospitals subject to the annual assessment under this

2 paragraph.

3   Notwithstanding any other provision in this Article,

4 beginning July 1, 2018 through December 31, 2026, in the case

5 of a hospital provider that did not conduct, operate, or

6 maintain a hospital in the year that is the basis of the

7 calculation of the assessment under this Article, the

8 assessment under subsection (b-5) of Section 5A-2 for that

9 State fiscal year shall be computed on the basis of

10 hypothetical gross outpatient revenue for the full calendar

11 year as determined by the Illinois Department, except that for

12 a hospital provider that did not have a 2015 Medicare cost

13 report, but paid an assessment in State fiscal year 2018 on the

14 basis of hypothetical data, that assessment amount shall be

15 used for State fiscal years 2019 and 2020; however, for State

16 fiscal year 2020, the assessment amount shall be increased by

17 the proportion that it represents of the total annual

18 assessment that is generated from all hospitals in order to

19 generate $6,250,000 in the aggregate for that period from all

20 hospitals subject to the annual assessment under this

21 paragraph.

22  (f) Every hospital provider subject to assessment under

23 this Article shall keep sufficient records to permit the

24 determination of adjusted gross hospital revenue for the

25 hospital's fiscal year. All such records shall be kept in the

26 English language and shall, at all times during regular
    HB2771 Enrolled  - 27 - LRB104 08638 BDA 18691 b

1 business hours of the day, be subject to inspection by the

2 Illinois Department or its duly authorized agents and

3 employees.

4   (g) The Illinois Department may, by rule, provide a

5 hospital provider a reasonable opportunity to request a

6 clarification or correction of any clerical or computational

7 errors contained in the calculation of its assessment, but

8 such corrections shall not extend to updating the cost report

9 information used to calculate the assessment.

10  (h) (Blank).

11 (Source: P.A. 102-886, eff. 5-17-22.)

12  (305 ILCS 5/5A-7) (from Ch. 23, par. 5A-7)

13  Sec. 5A-7. Administration; enforcement provisions.

14  (a) The Illinois Department shall establish and maintain a

15 listing of all hospital providers appearing in the licensing

16 records of the Illinois Department of Public Health, which

17 shall show each provider's name and principal place of

18 business and the name and address of each hospital operated,

19 conducted, or maintained by the provider in this State. The

20 listing shall also include the monthly assessment amounts owed

21 for each hospital and any unpaid assessment liability greater

22 than 90 days delinquent. The Illinois Department shall

23 administer and enforce this Article and collect the

24 assessments and penalty assessments imposed under this Article

25 using procedures employed in its administration of this Code
    HB2771 Enrolled  - 28 - LRB104 08638 BDA 18691 b

1 generally. The Illinois Department, its Director, and every

2 hospital provider subject to assessment under this Article

3 shall have the following powers, duties, and rights:

4   (1) The Illinois Department may initiate either

5   administrative or judicial proceedings, or both, to

6   enforce provisions of this Article. Administrative

7   enforcement proceedings initiated hereunder shall be

8   governed by the Illinois Department's administrative

9   rules. Judicial enforcement proceedings initiated

10  hereunder shall be governed by the rules of procedure

11  applicable in the courts of this State.

12  (2) (Blank). No proceedings for collection, refund,

13  credit, or other adjustment of an assessment amount shall

14  be issued more than 3 years after the due date of the

15  assessment, except in the case of an extended period

16  agreed to in writing by the Illinois Department and the

17  hospital provider before the expiration of this limitation

18  period.

19  (3) Any unpaid assessment under this Article shall

20  become a lien upon the assets of the hospital upon which it

21  was assessed. If any hospital provider, outside the usual

22  course of its business, sells or transfers the major part

23  of any one or more of (A) the real property and

24  improvements, (B) the machinery and equipment, or (C) the

25  furniture or fixtures, of any hospital that is subject to

26  the provisions of this Article, the seller or transferor
    HB2771 Enrolled  - 29 - LRB104 08638 BDA 18691 b

1   shall pay the Illinois Department the amount of any

2   assessment, assessment penalty, and interest (if any) due

3   from it under this Article up to the date of the sale or

4   transfer. The Illinois Department may, in its discretion,

5   foreclose on such a lien, but shall do so in a manner that

6   is consistent with Section 5e of the Retailers' Occupation

7   Tax Act. If the seller or transferor fails to pay any

8   assessment, assessment penalty, and interest (if any) due,

9   the purchaser or transferee of such asset shall be liable

10  for the amount of the assessment, penalties, and interest

11  (if any) up to the amount of the reasonable value of the

12  property acquired by the purchaser or transferee. The

13  purchaser or transferee shall continue to be liable until

14  the purchaser or transferee pays the full amount of the

15  assessment, penalties, and interest (if any) up to the

16  amount of the reasonable value of the property acquired by

17  the purchaser or transferee or until the purchaser or

18  transferee receives from the Illinois Department a

19  certificate showing that such assessment, penalty, and

20  interest have been paid or a certificate from the Illinois

21  Department showing that no assessment, penalty, or

22  interest is due from the seller or transferor under this

23  Article.

24  (4) Payments under this Article are not subject to the

25  Illinois Prompt Payment Act. Credits or refunds shall not

26  bear interest.
    HB2771 Enrolled  - 30 - LRB104 08638 BDA 18691 b

1   (b) In addition to any other remedy provided for and

2 without sending a notice of assessment liability, the Illinois

3 Department shall may collect an unpaid assessment by

4 withholding, as payment of the assessment, reimbursements or

5 other amounts otherwise payable by the Illinois Department to

6 the hospital provider, including, but not limited to, payment

7 amounts otherwise payable from a managed care organization

8 performing duties under contract with the Illinois Department.

9   (1) The requirements of this subsection may be waived

10  in instances when a disaster proclamation has been

11  declared by the Governor. In such circumstances, a

12  hospital must demonstrate temporary financial distress and

13  establish an agreement with the Illinois Department

14  specifying when repayment in full of all taxes owed will

15  occur.

16  (2) The requirements of this subsection may be waived

17  by the Illinois Department in instances when a hospital

18  has entered into and remains in compliance with a

19  repayment plan or a tax deferral plan. A repayment plan or

20  tax deferral plan must be entered into no later than 30

21  days after notice of an unpaid assessment payment. No

22  repayment plan may exceed a period of 36 months. No tax

23  deferral plan may exceed a period of 6 months, and

24  repayment after the end of a tax deferral plan shall not

25  exceed 36 months. Failure to remain in compliance with a

26  repayment plan or tax deferral plan shall cause immediate
    HB2771 Enrolled        - 31 - LRB104 08638 BDA 18691 b

1   termination of such plan unless there is prior written

2   consent from the Illinois Department for a period of

3   non-compliance.

4   (3) Beginning September 1, 2025, the Illinois

5   Department shall immediately collect all overdue unpaid

6   assessments and penalties through the collection methods

7   authorized under this Section, unless a repayment plan or

8   tax deferral plan has already been agreed to by September

9   1, 2025.

10  (c) To provide for the expeditious and timely

11 implementation of the changes made to this Section by this

12 amendatory Act of the 104th General Assembly, the Department

13 may adopt emergency rules as authorized by Section 5-45 of the

14 Illinois Administrative Procedure Act. The adoption of

15 emergency rules is deemed to be necessary for the public

16 interest, safety, and welfare.

17 (Source: P.A. 93-659, eff. 2-3-04; 93-841, eff. 7-30-04;

18 94-242, eff. 7-18-05.)

19  (305 ILCS 5/5A-8) (from Ch. 23, par. 5A-8)

20  Sec. 5A-8. Hospital Provider Fund.

21  (a) There is created in the State Treasury the Hospital

22 Provider Fund. Interest earned by the Fund shall be credited

23 to the Fund. The Fund shall not be used to replace any moneys

24 appropriated to the Medicaid program by the General Assembly.

25  (b) The Fund is created for the purpose of receiving
    HB2771 Enrolled  - 32 - LRB104 08638 BDA 18691 b

1 moneys in accordance with Section 5A-6 and disbursing moneys

2 only for the following purposes, notwithstanding any other

3 provision of law:

4   (1) For making payments to hospitals as required under

5   this Code, under the Children's Health Insurance Program

6   Act, under the Covering ALL KIDS Health Insurance Act, and

7   under the Long Term Acute Care Hospital Quality

8   Improvement Transfer Program Act.

9   (2) For the reimbursement of moneys collected by the

10  Illinois Department from hospitals or hospital providers

11  through error or mistake in performing the activities

12  authorized under this Code.

13  (3) For payment of administrative expenses incurred by

14  the Illinois Department or its agent in performing

15  activities under this Code, under the Children's Health

16  Insurance Program Act, under the Covering ALL KIDS Health

17  Insurance Act, and under the Long Term Acute Care Hospital

18  Quality Improvement Transfer Program Act.

19  (4) For payments of any amounts which are reimbursable

20  to the federal government for payments from this Fund

21  which are required to be paid by State warrant.

22  (5) For making transfers, as those transfers are

23  authorized in the proceedings authorizing debt under the

24  Short Term Borrowing Act, but transfers made under this

25  paragraph (5) shall not exceed the principal amount of

26  debt issued in anticipation of the receipt by the State of
    HB2771 Enrolled  - 33 - LRB104 08638 BDA 18691 b

1   moneys to be deposited into the Fund.

2   (6) For making transfers to any other fund in the

3   State treasury, but transfers made under this paragraph

4   (6) shall not exceed the amount transferred previously

5   from that other fund into the Hospital Provider Fund plus

6   any interest that would have been earned by that fund on

7   the monies that had been transferred.

8   (6.5) For making transfers to the Healthcare Provider

9   Relief Fund, except that transfers made under this

10  paragraph (6.5) shall not exceed $60,000,000 in the

11  aggregate.

12  (7) For making transfers not exceeding the following

13  amounts, related to State fiscal years 2013 through 2018,

14  to the following designated funds:

15         Health and Human Services Medicaid Trust

16                   Fund ............................ $20,000,000

17         Long-Term Care Provider Fund ........ $30,000,000

18         General Revenue Fund ................ $80,000,000.

19  Transfers under this paragraph shall be made within 7 days

20  after the payments have been received pursuant to the

21  schedule of payments provided in subsection (a) of Section

22  5A-4.

23  (7.1) (Blank).

24  (7.5) (Blank).

25  (7.8) (Blank).

26  (7.9) (Blank).
    HB2771 Enrolled          - 34 - LRB104 08638 BDA 18691 b

1   (7.10) For State fiscal year 2014, for making

2   transfers of the moneys resulting from the assessment

3   under subsection (b-5) of Section 5A-2 and received from

4   hospital providers under Section 5A-4 and transferred into

5   the Hospital Provider Fund under Section 5A-6 to the

6   designated funds not exceeding the following amounts in

7   that State fiscal year:

8          Healthcare Provider Relief Fund ...... $100,000,000

9   Transfers under this paragraph shall be made within 7

10  days after the payments have been received pursuant to the

11  schedule of payments provided in subsection (a) of Section

12  5A-4.

13  The additional amount of transfers in this paragraph

14  (7.10), authorized by Public Act 98-651, shall be made

15  within 10 State business days after June 16, 2014 (the

16  effective date of Public Act 98-651). That authority shall

17  remain in effect even if Public Act 98-651 does not become

18  law until State fiscal year 2015.

19  (7.10a) For State fiscal years 2015 through 2018, for

20  making transfers of the moneys resulting from the

21  assessment under subsection (b-5) of Section 5A-2 and

22  received from hospital providers under Section 5A-4 and

23  transferred into the Hospital Provider Fund under Section

24  5A-6 to the designated funds not exceeding the following

25  amounts related to each State fiscal year:

26         Healthcare Provider Relief Fund ...... $50,000,000
    HB2771 Enrolled          - 35 - LRB104 08638 BDA 18691 b

1   Transfers under this paragraph shall be made within 7

2   days after the payments have been received pursuant to the

3   schedule of payments provided in subsection (a) of Section

4   5A-4.

5   (7.11) (Blank).

6   (7.12) For State fiscal year 2013, for increasing by

7   21/365ths the transfer of the moneys resulting from the

8   assessment under subsection (b-5) of Section 5A-2 and

9   received from hospital providers under Section 5A-4 for

10  the portion of State fiscal year 2012 beginning June 10,

11  2012 through June 30, 2012 and transferred into the

12  Hospital Provider Fund under Section 5A-6 to the

13  designated funds not exceeding the following amounts in

14  that State fiscal year:

15         Healthcare Provider Relief Fund ........ $2,870,000

16  Since the federal Centers for Medicare and Medicaid

17  Services approval of the assessment authorized under

18  subsection (b-5) of Section 5A-2, received from hospital

19  providers under Section 5A-4 and the payment methodologies

20  to hospitals required under Section 5A-12.4 was not

21  received by the Department until State fiscal year 2014

22  and since the Department made retroactive payments during

23  State fiscal year 2014 related to the referenced period of

24  June 2012, the transfer authority granted in this

25  paragraph (7.12) is extended through the date that is 10

26  State business days after June 16, 2014 (the effective
    HB2771 Enrolled  - 36 - LRB104 08638 BDA 18691 b

1   date of Public Act 98-651).

2   (7.13) In addition to any other transfers authorized

3   under this Section, for State fiscal years 2017 and 2018,

4   for making transfers to the Healthcare Provider Relief

5   Fund of moneys collected from the ACA Assessment

6   Adjustment authorized under subsections (a) and (b-5) of

7   Section 5A-2 and paid by hospital providers under Section

8   5A-4 into the Hospital Provider Fund under Section 5A-6

9   for each State fiscal year. Timing of transfers to the

10  Healthcare Provider Relief Fund under this paragraph shall

11  be at the discretion of the Department, but no less

12  frequently than quarterly.

13  (7.14) For making transfers not exceeding the

14  following amounts, related to State fiscal years 2019 and

15  2020, to the following designated funds:

16         Health and Human Services Medicaid Trust

17                   Fund ............................ $20,000,000

18         Long-Term Care Provider Fund ........ $30,000,000

19         Healthcare Provider Relief Fund .... $325,000,000.

20  Transfers under this paragraph shall be made within 7

21  days after the payments have been received pursuant to the

22  schedule of payments provided in subsection (a) of Section

23  5A-4.

24  (7.15) For making transfers not exceeding the

25  following amounts, related to State fiscal years 2023

26  through 2024 2026, to the following designated funds:
    HB2771 Enrolled  - 37 - LRB104 08638 BDA 18691 b

1   Health and Human Services Medicaid Trust

2                    Fund ............................ $20,000,000

3   Long-Term Care Provider Fund ........ $30,000,000

4   Healthcare Provider Relief Fund ...... $365,000,000

5   (7.16) For making transfers not exceeding the

6   following amounts, related to July 1, 2024 2026 to

7   December 31, 2024 2026, to the following designated funds:

8   Health and Human Services Medicaid Trust

9                    Fund ............................ $10,000,000

10  Long-Term Care Provider Fund ........ $15,000,000

11  Healthcare Provider Relief Fund ...... $182,500,000

12  (7.17) For making transfers not exceeding the

13  following amounts, related to calendar years 2025 and each

14  calendar year thereafter, the following designated funds:

15  Health and Human Services Medicaid Trust

16                   Fund ............................ $20,000,000

17  Long-Term Care Provider Fund ........ $30,000,000

18  Healthcare Provider Relief Fund .... $505,637,082;

19 however the amount shall remain $365,000,000 until the

20 reimbursement rates described in subsection (r) of Section

21 5A-12.7 are fully implemented. If for any reason the

22 assessment imposed by subsection (a) or (b-5) of Section 5A-2

23 is reduced, the amount of $505,637,082 shall be reduced by the

24 same percentage.

25  To provide for the expeditious and timely implementation

26 of the changes made to this subsection by this amendatory Act
    HB2771 Enrolled         - 38 - LRB104 08638 BDA 18691 b

1 of the 104th General Assembly, the Department may adopt

2 emergency rules as authorized by Section 5-45 of the Illinois

3 Administrative Procedure Act. The adoption of emergency rules

4 is deemed to be necessary for the public interest, safety, and

5 welfare.

6   (8) For making refunds to hospital providers pursuant

7   to Section 5A-10.

8   (9) For making payment to capitated managed care

9   organizations as described in subsections (s) and (t) of

10  Section 5A-12.2, subsection (r) of Section 5A-12.6, and

11  Section 5A-12.7 of this Code.

12  Disbursements from the Fund, other than transfers

13 authorized under paragraphs (5) and (6) of this subsection,

14 shall be by warrants drawn by the State Comptroller upon

15 receipt of vouchers duly executed and certified by the

16 Illinois Department.

17  (c) The Fund shall consist of the following:

18  (1) All moneys collected or received by the Illinois

19  Department from the hospital provider assessment imposed

20  by this Article.

21  (2) All federal matching funds received by the

22  Illinois Department as a result of expenditures made by

23  the Illinois Department that are attributable to moneys

24  deposited in the Fund.

25  (3) Any interest or penalty levied in conjunction with

26  the administration of this Article.
    HB2771 Enrolled  - 39 - LRB104 08638 BDA 18691 b

1   (3.5) As applicable, proceeds from surety bond

2   payments payable to the Department as referenced in

3   subsection (s) of Section 5A-12.2 of this Code.

4   (4) Moneys transferred from another fund in the State

5   treasury.

6   (5) All other moneys received for the Fund from any

7   other source, including interest earned thereon.

8   (d) (Blank).

9 (Source: P.A. 101-650, eff. 7-7-20; 102-886, eff. 5-17-22.)

10  (305 ILCS 5/5A-10) (from Ch. 23, par. 5A-10)

11  Sec. 5A-10. Applicability.

12  (a) The assessment imposed by subsection (a) of Section

13 5A-2 shall cease to be imposed and the Department's obligation

14 to make payments shall immediately cease, and any moneys

15 remaining in the Fund shall be refunded to hospital providers

16 in proportion to the amounts paid by them, if:

17  (1) The payments to hospitals required under this

18  Article are not eligible for federal matching funds under

19  Title XIX or XXI of the Social Security Act;

20  (2) For State fiscal years 2009 through 2018, and as

21  provided in Section 5A-16, the Department of Healthcare

22  and Family Services adopts any administrative rule change

23  to reduce payment rates or alters any payment methodology

24  that reduces any payment rates made to operating hospitals

25  under the approved Title XIX or Title XXI State plan in
    HB2771 Enrolled     - 40 - LRB104 08638 BDA 18691 b

1   effect January 1, 2008 except for:

2   (A) any changes for hospitals described in

3   subsection (b) of Section 5A-3;

4   (B) any rates for payments made under this Article

5   V-A;

6   (C) any changes proposed in State plan amendment

7   transmittal numbers 08-01, 08-02, 08-04, 08-06, and

8   08-07;

9   (D) in relation to any admissions on or after

10  January 1, 2011, a modification in the methodology for

11  calculating outlier payments to hospitals for

12  exceptionally costly stays, for hospitals reimbursed

13  under the diagnosis-related grouping methodology in

14  effect on July 1, 2011; provided that the Department

15  shall be limited to one such modification during the

16  36-month period after the effective date of this

17  amendatory Act of the 96th General Assembly;

18  (E) any changes affecting hospitals authorized by

19  Public Act 97-689;

20  (F) any changes authorized by Section 14-12 of

21  this Code, or for any changes authorized under Section

22  5A-15 of this Code; or

23  (G) any changes authorized under Section 5-5b.1.

24  (b) The assessment imposed by Section 5A-2 shall not take

25 effect or shall cease to be imposed, and the Department's

26 obligation to make payments shall immediately cease, if the
    HB2771 Enrolled             - 41 - LRB104 08638 BDA 18691 b

1 assessment is determined to be an impermissible tax under

2 Title XIX of the Social Security Act. Moneys in the Hospital

3 Provider Fund derived from assessments imposed prior thereto

4 shall be disbursed in accordance with Section 5A-8 to the

5 extent federal financial participation is not reduced due to

6 the impermissibility of the assessments, and any remaining

7 moneys shall be refunded to hospital providers in proportion

8 to the amounts paid by them.

9   (c) The assessments imposed by subsection (b-5) of Section

10 5A-2 shall not take effect or shall cease to be imposed, the

11 Department's obligation to make payments shall immediately

12 cease, and any moneys remaining in the Fund shall be refunded

13 to hospital providers in proportion to the amounts paid by

14 them, if the payments to hospitals required under Section

15 5A-12.4 or Section 5A-12.6 are not eligible for federal

16 matching funds under Title XIX of the Social Security Act.

17  (d) The assessments imposed by Section 5A-2 shall not take

18 effect or shall cease to be imposed, the Department's

19 obligation to make payments shall immediately cease, and any

20 moneys remaining in the Fund shall be refunded to hospital

21 providers in proportion to the amounts paid by them, if:

22  (1) for State fiscal years 2013 through 2018, and as

23  provided in Section 5A-16, the Department reduces any

24  payment rates to hospitals as in effect on May 1, 2012, or

25  alters any payment methodology as in effect on May 1,

26  2012, that has the effect of reducing payment rates to
    HB2771 Enrolled        - 42 - LRB104 08638 BDA 18691 b

1   hospitals, except for any changes affecting hospitals

2   authorized in Public Act 97-689 and any changes authorized

3   by Section 14-12 of this Code, and except for any changes

4   authorized under Section 5A-15, and except for any changes

5   authorized under Section 5-5b.1;

6   (2) for State fiscal years 2013 through 2018, and as

7   provided in Section 5A-16, the Department reduces any

8   supplemental payments made to hospitals below the amounts

9   paid for services provided in State fiscal year 2011 as

10  implemented by administrative rules adopted and in effect

11  on or prior to June 30, 2011, except for any changes

12  affecting hospitals authorized in Public Act 97-689 and

13  any changes authorized by Section 14-12 of this Code, and

14  except for any changes authorized under Section 5A-15, and

15  except for any changes authorized under Section 5-5b.1; or

16  (3) for State fiscal years 2015 through 2018, and as

17  provided in Section 5A-16, the Department reduces the

18  overall effective rate of reimbursement to hospitals below

19  the level authorized under Section 14-12 of this Code,

20  except for any changes under Section 14-12 or Section

21  5A-15 of this Code, and except for any changes authorized

22  under Section 5-5b.1.

23  (e) In State fiscal year 2019 through State fiscal year

24 2020, the assessments imposed under Section 5A-2 shall not

25 take effect or shall cease to be imposed, the Department's

26 obligation to make payments shall immediately cease, and any
    HB2771 Enrolled  - 43 - LRB104 08638 BDA 18691 b

1 moneys remaining in the Fund shall be refunded to hospital

2 providers in proportion to the amounts paid by them, if:

3   (1) the payments to hospitals required under Section

4   5A-12.6 are not eligible for federal matching funds under

5   Title XIX of the Social Security Act; or

6   (2) the Department reduces the overall effective rate

7   of reimbursement to hospitals below the level authorized

8   under Section 14-12 of this Code, as in effect on December

9   31, 2017, except for any changes authorized under Sections

10  14-12 or Section 5A-15 of this Code, and except for any

11  changes authorized under changes to Sections 5A-12.2,

12  5A-12.4, 5A-12.5, 5A-12.6, and 14-12 made by Public Act

13  100-581.

14  (f) Beginning in State Fiscal Year 2021 through December

15 31, 2024, the assessments imposed under Section 5A-2 shall not

16 take effect or shall cease to be imposed, the Department's

17 obligation to make payments shall immediately cease, and any

18 moneys remaining in the Fund shall be refunded to hospital

19 providers in proportion to the amounts paid by them, if:

20  (1) the payments to hospitals required under Section

21  5A-12.7 are not eligible for federal matching funds under

22  Title XIX of the Social Security Act; or

23  (2) the Department reduces the overall effective rate

24  of reimbursement to hospitals below the level authorized

25  under Section 14-12, as in effect on December 31, 2021,

26  except for any changes authorized under Sections 14-12 or
    HB2771 Enrolled          - 44 - LRB104 08638 BDA 18691 b

1   5A-15, and except for any changes authorized under changes

2   to Sections 5A-12.7 and 14-12 made by this amendatory Act

3   of the 101st General Assembly, and except for any changes

4   to Section 5A-12.7 made by this amendatory Act of the

5   102nd General Assembly.

6   (g) Beginning January 1, 2025, the assessments imposed

7 under Section 5A-2 shall not take effect or shall cease to be

8 imposed, if:

9   (1) the payments to hospitals required under Section

10  5A-12.7 are not eligible for federal matching funds under

11  Title XIX of the Social Security Act; or

12  (2) the Department reduces the rates of reimbursement

13  below the rates in effect December 31, 2024, resulting in

14  an aggregate reduction below the levels of reimbursement

15  for the 12-month period ending 6 months prior to the

16  effective date of the proposed new rates.

17  (h) To provide for the expeditious and timely

18 implementation of the changes made to this Section by this

19 amendatory Act of the 104th General Assembly, the Department

20 may adopt emergency rules as authorized by Section 5-45 of the

21 Illinois Administrative Procedure Act. The adoption of

22 emergency rules is deemed to be necessary for the public

23 interest, safety, and welfare.

24 (Source: P.A. 101-650, eff. 7-7-20; 102-886, eff. 5-17-22.)

25  (305 ILCS 5/5A-12.7)
    HB2771 Enrolled        - 45 - LRB104 08638 BDA 18691 b

1   (Section scheduled to be repealed on December 31, 2026)

2   Sec. 5A-12.7. Continuation of hospital access payments on

3 and after July 1, 2020.

4   (a) To preserve and improve access to hospital services,

5 for hospital services rendered on and after July 1, 2020, the

6 Department shall, except for hospitals described in subsection

7 (b) of Section 5A-3, make payments to hospitals or require

8 capitated managed care organizations to make payments as set

9 forth in this Section. Payments under this Section are not due

10 and payable, however, until: (i) the methodologies described

11 in this Section are approved by the federal government in an

12 appropriate State Plan amendment or directed payment preprint;

13 and (ii) the assessment imposed under this Article is

14 determined to be a permissible tax under Title XIX of the

15 Social Security Act. In determining the hospital access

16 payments authorized under subsection (g) of this Section, if a

17 hospital ceases to qualify for payments from the pool, the

18 payments for all hospitals continuing to qualify for payments

19 from such pool shall be uniformly adjusted to fully expend the

20 aggregate net amount of the pool, with such adjustment being

21 effective on the first day of the second month following the

22 date the hospital ceases to receive payments from such pool.

23  (b) Amounts moved into claims-based rates and distributed

24 in accordance with Section 14-12 shall remain in those

25 claims-based rates.

26  (c) Graduate medical education.
    HB2771 Enrolled  - 46 - LRB104 08638 BDA 18691 b

1   (1) The calculation of graduate medical education

2   payments shall be based on the hospital's Medicare cost

3   report ending in Calendar Year 2018, as reported in the

4   Healthcare Cost Report Information System file, release

5   date September 30, 2019. An Illinois hospital reporting

6   intern and resident cost on its Medicare cost report shall

7   be eligible for graduate medical education payments.

8   (2) Each hospital's annualized Medicaid Intern

9   Resident Cost is calculated using annualized intern and

10  resident total costs obtained from Worksheet B Part I,

11  Columns 21 and 22 the sum of Lines 30-43, 50-76, 90-93,

12  96-98, and 105-112 multiplied by the percentage that the

13  hospital's Medicaid days (Worksheet S3 Part I, Column 7,

14  Lines 2, 3, 4, 14, 16-18, and 32) comprise of the

15  hospital's total days (Worksheet S3 Part I, Column 8,

16  Lines 14, 16-18, and 32).

17  (3) An annualized Medicaid indirect medical education

18  (IME) payment is calculated for each hospital using its

19  IME payments (Worksheet E Part A, Line 29, Column 1)

20  multiplied by the percentage that its Medicaid days

21  (Worksheet S3 Part I, Column 7, Lines 2, 3, 4, 14, 16-18,

22  and 32) comprise of its Medicare days (Worksheet S3 Part

23  I, Column 6, Lines 2, 3, 4, 14, and 16-18).

24  (4) For each hospital, its annualized Medicaid Intern

25  Resident Cost and its annualized Medicaid IME payment are

26  summed, and, except as capped at 120% of the average cost
    HB2771 Enrolled  - 47 - LRB104 08638 BDA 18691 b

1   per intern and resident for all qualifying hospitals as

2   calculated under this paragraph, is multiplied by the

3   applicable reimbursement factor as described in this

4   paragraph, to determine the hospital's final graduate

5   medical education payment. Each hospital's average cost

6   per intern and resident shall be calculated by summing its

7   total annualized Medicaid Intern Resident Cost plus its

8   annualized Medicaid IME payment and dividing that amount

9   by the hospital's total Full Time Equivalent Residents and

10  Interns. If the hospital's average per intern and resident

11  cost is greater than 120% of the same calculation for all

12  qualifying hospitals, the hospital's per intern and

13  resident cost shall be capped at 120% of the average cost

14  for all qualifying hospitals.

15  (A) For the period of July 1, 2020 through

16  December 31, 2022, the applicable reimbursement factor

17  shall be 22.6%.

18  (B) Beginning For the period of January 1, 2023

19  through December 31, 2026, the applicable

20  reimbursement factor shall be 35% for all qualified

21  safety-net hospitals, as defined in Section 5-5e.1 of

22  this Code, and all hospitals with 100 or more Full Time

23  Equivalent Residents and Interns, as reported on the

24  hospital's Medicare cost report ending in Calendar

25  Year 2018, and for all other qualified hospitals the

26  applicable reimbursement factor shall be 30%.
    HB2771 Enrolled     - 48 - LRB104 08638 BDA 18691 b

1   (d) Fee-for-service supplemental payments. For the period

2 of July 1, 2020 through December 31, 2022, each Illinois

3 hospital shall receive an annual payment equal to the amounts

4 below, to be paid in 12 equal installments on or before the

5 seventh State business day of each month, except that no

6 payment shall be due within 30 days after the later of the date

7 of notification of federal approval of the payment

8 methodologies required under this Section or any waiver

9 required under 42 CFR 433.68, at which time the sum of amounts

10 required under this Section prior to the date of notification

11 is due and payable.

12  (1) For critical access hospitals, $385 per covered

13  inpatient day contained in paid fee-for-service claims and

14  $530 per paid fee-for-service outpatient claim for dates

15  of service in Calendar Year 2019 in the Department's

16  Enterprise Data Warehouse as of May 11, 2020.

17  (2) For safety-net hospitals, $960 per covered

18  inpatient day contained in paid fee-for-service claims and

19  $625 per paid fee-for-service outpatient claim for dates

20  of service in Calendar Year 2019 in the Department's

21  Enterprise Data Warehouse as of May 11, 2020.

22  (3) For long term acute care hospitals, $295 per

23  covered inpatient day contained in paid fee-for-service

24  claims for dates of service in Calendar Year 2019 in the

25  Department's Enterprise Data Warehouse as of May 11, 2020.

26  (4) For freestanding psychiatric hospitals, $125 per
    HB2771 Enrolled   - 49 - LRB104 08638 BDA 18691 b

1   covered inpatient day contained in paid fee-for-service

2   claims and $130 per paid fee-for-service outpatient claim

3   for dates of service in Calendar Year 2019 in the

4   Department's Enterprise Data Warehouse as of May 11, 2020.

5   (5) For freestanding rehabilitation hospitals, $355

6   per covered inpatient day contained in paid

7   fee-for-service claims for dates of service in Calendar

8   Year 2019 in the Department's Enterprise Data Warehouse as

9   of May 11, 2020.

10  (6) For all general acute care hospitals and high

11  Medicaid hospitals as defined in subsection (f), $350 per

12  covered inpatient day for dates of service in Calendar

13  Year 2019 contained in paid fee-for-service claims and

14  $620 per paid fee-for-service outpatient claim in the

15  Department's Enterprise Data Warehouse as of May 11, 2020.

16  (7) Alzheimer's treatment access payment. Each

17  Illinois academic medical center or teaching hospital, as

18  defined in Section 5-5e.2 of this Code, that is identified

19  as the primary hospital affiliate of one of the Regional

20  Alzheimer's Disease Assistance Centers, as designated by

21  the Alzheimer's Disease Assistance Act and identified in

22  the Department of Public Health's Alzheimer's Disease

23  State Plan dated December 2016, shall be paid an

24  Alzheimer's treatment access payment equal to the product

25  of the qualifying hospital's State Fiscal Year 2018 total

26  inpatient fee-for-service days multiplied by the
    HB2771 Enrolled  - 50 - LRB104 08638 BDA 18691 b

1   applicable Alzheimer's treatment rate of $226.30 for

2   hospitals located in Cook County and $116.21 for hospitals

3   located outside Cook County.

4   (d-2) Fee-for-service supplemental payments. Beginning

5 January 1, 2023, each Illinois hospital shall receive an

6 annual payment equal to the amounts listed below, to be paid in

7 12 equal installments on or before the seventh State business

8 day of each month, except that no payment shall be due within

9 30 days after the later of the date of notification of federal

10 approval of the payment methodologies required under this

11 Section or any waiver required under 42 CFR 433.68, at which

12 time the sum of amounts required under this Section prior to

13 the date of notification is due and payable. The Department

14 may adjust the rates in paragraphs (1) through (7) to comply

15 with the federal upper payment limits, with such adjustments

16 being determined so that the total estimated spending by

17 hospital class, under such adjusted rates, remains

18 substantially similar to the total estimated spending under

19 the original rates set forth in this subsection.

20  (1) For critical access hospitals, as defined in

21  subsection (f), $750 per covered inpatient day contained

22  in paid fee-for-service claims and $750 per paid

23  fee-for-service outpatient claim for dates of service in

24  Calendar Year 2019 in the Department's Enterprise Data

25  Warehouse as of August 6, 2021.

26  (2) For safety-net hospitals, as described in
    HB2771 Enrolled  - 51 - LRB104 08638 BDA 18691 b

1   subsection (f), $1,350 per inpatient day contained in paid

2   fee-for-service claims and $1,350 per paid fee-for-service

3   outpatient claim for dates of service in Calendar Year

4   2019 in the Department's Enterprise Data Warehouse as of

5   August 6, 2021.

6   (3) For long term acute care hospitals, $550 per

7   covered inpatient day contained in paid fee-for-service

8   claims for dates of service in Calendar Year 2019 in the

9   Department's Enterprise Data Warehouse as of August 6,

10  2021.

11  (4) For freestanding psychiatric hospitals, $200 per

12  covered inpatient day contained in paid fee-for-service

13  claims and $200 per paid fee-for-service outpatient claim

14  for dates of service in Calendar Year 2019 in the

15  Department's Enterprise Data Warehouse as of August 6,

16  2021.

17  (5) For freestanding rehabilitation hospitals, $550

18  per covered inpatient day contained in paid

19  fee-for-service claims and $125 per paid fee-for-service

20  outpatient claim for dates of service in Calendar Year

21  2019 in the Department's Enterprise Data Warehouse as of

22  August 6, 2021.

23  (6) For all general acute care hospitals and high

24  Medicaid hospitals as defined in subsection (f), $500 per

25  covered inpatient day for dates of service in Calendar

26  Year 2019 contained in paid fee-for-service claims and
    HB2771 Enrolled  - 52 - LRB104 08638 BDA 18691 b

1   $500 per paid fee-for-service outpatient claim in the

2   Department's Enterprise Data Warehouse as of August 6,

3   2021.

4   (7) For public hospitals, as defined in subsection

5   (f), $275 per covered inpatient day contained in paid

6   fee-for-service claims and $275 per paid fee-for-service

7   outpatient claim for dates of service in Calendar Year

8   2019 in the Department's Enterprise Data Warehouse as of

9   August 6, 2021.

10  (8) Alzheimer's treatment access payment. Each

11  Illinois academic medical center or teaching hospital, as

12  defined in Section 5-5e.2 of this Code, that is identified

13  as the primary hospital affiliate of one of the Regional

14  Alzheimer's Disease Assistance Centers, as designated by

15  the Alzheimer's Disease Assistance Act and identified in

16  the Department of Public Health's Alzheimer's Disease

17  State Plan dated December 2016, shall be paid an

18  Alzheimer's treatment access payment equal to the product

19  of the qualifying hospital's Calendar Year 2019 total

20  inpatient fee-for-service days, in the Department's

21  Enterprise Data Warehouse as of August 6, 2021, multiplied

22  by the applicable Alzheimer's treatment rate of $244.37

23  for hospitals located in Cook County and $312.03 for

24  hospitals located outside Cook County.

25  (e) The Department shall require managed care

26 organizations (MCOs) to make directed payments and
HB2771 Enrolled  - 53 - LRB104 08638 BDA 18691 b

 1 pass-through payments according to this Section. Each calendar
 2 year, the Department shall require MCOs to pay the maximum
 3 amount out of these funds as allowed as pass-through payments
 4 under federal regulations. The Department shall require MCOs
 5 to make such pass-through payments as specified in this
 6 Section. The Department shall require the MCOs to pay the
 7 remaining amounts as directed Payments as specified in this
 8 Section. The Department shall issue payments to the
 9 Comptroller by the seventh business day of each month for all
10 MCOs that are sufficient for MCOs to make the directed
11 payments and pass-through payments according to this Section.
12 The Department shall require the MCOs to make pass-through
13 payments and directed payments using electronic funds
14 transfers (EFT), if the hospital provides the information
15 necessary to process such EFTs, in accordance with directions
16 provided monthly by the Department, within 7 business days of
17 the date the funds are paid to the MCOs, as indicated by the
18 "Paid Date" on the website of the Office of the Comptroller if
19 the funds are paid by EFT and the MCOs have received directed
20 payment instructions. If funds are not paid through the
21 Comptroller by EFT, payment must be made within 7 business
22 days of the date actually received by the MCO. The MCO will be
23 considered to have paid the pass-through payments when the
24 payment remittance number is generated or the date the MCO
25 sends the check to the hospital, if EFT information is not
26 supplied. If an MCO is late in paying a pass-through payment or
    HB2771 Enrolled       - 54 - LRB104 08638 BDA 18691 b

1 directed payment as required under this Section (including any

2 extensions granted by the Department), it shall pay a penalty,

3 unless waived by the Department for reasonable cause, to the

4 Department equal to 5% of the amount of the pass-through

5 payment or directed payment not paid on or before the due date

6 plus 5% of the portion thereof remaining unpaid on the last day

7 of each 30-day period thereafter. Payments to MCOs that would

8 be paid consistent with actuarial certification and enrollment

9 in the absence of the increased capitation payments under this

10 Section shall not be reduced as a consequence of payments made

11 under this subsection. The Department shall publish and

12 maintain on its website for a period of no less than 8 calendar

13 quarters, the quarterly calculation of directed payments and

14 pass-through payments owed to each hospital from each MCO. All

15 calculations and reports shall be posted no later than the

16 first day of the quarter for which the payments are to be

17 issued.

18  (f)(1) For purposes of allocating the funds included in

19 capitation payments to MCOs, Illinois hospitals shall be

20 divided into the following classes as defined in

21 administrative rules:

22          (A) Beginning July 1, 2020 through December 31, 2022,

23  critical access hospitals. Beginning January 1, 2023,

24  "critical access hospital" means a hospital designated by

25  the Department of Public Health as a critical access

26  hospital, excluding any hospital meeting the definition of
    HB2771 Enrolled     - 55 - LRB104 08638 BDA 18691 b

1   a public hospital in subparagraph (F).

2   (B) Safety-net hospitals, except that stand-alone

3   children's hospitals that are not specialty children's

4   hospitals, safety-net hospitals that elect not to be

5   included as provided in item (i), and, for calendar years

6   2025 and 2026 only, hospitals with over 9,000 Medicaid

7   acute care inpatient admissions per calendar year,

8   excluding admissions for Medicare-Medicaid dual eligible

9   patients, will not be included. For the calendar year

10  beginning January 1, 2023, and each calendar year

11  thereafter, assignment to the safety-net class shall be

12  based on the annual safety-net rate year beginning 15

13  months before the beginning of the first Payout Quarter of

14  the calendar year.

15  (i) Beginning calendar year 2026, all hospitals

16  qualifying as a safety-net hospital under subsection

17  (a) of Section 5-5e.1 for rates years beginning on and

18  after October 1, 2024 shall be permitted to elect to

19  remain in the high Medicaid hospital class as defined

20  in subparagraph (G) for purposes of the State directed

21  payments described in subsection (r) instead of being

22  assigned to the safety-net fixed pool directed

23  payments class as described in subsection (g).

24  (ii) If a hospital elects assignment in the high

25  Medicaid hospital class as defined in subparagraph

26  (G), the hospital must remain in the high Medicaid
    HB2771 Enrolled  - 56 - LRB104 08638 BDA 18691 b

1   hospital class for the entire calendar year.

2   (C) Long term acute care hospitals.

3   (D) Freestanding psychiatric hospitals.

4   (E) Freestanding rehabilitation hospitals.

5   (F) Beginning January 1, 2023, "public hospital" means

6   a hospital that is owned or operated by an Illinois

7   Government body or municipality, excluding a hospital

8   provider that is a State agency, a State university, or a

9   county with a population of 3,000,000 or more.

10  (G) High Medicaid hospitals.

11  (i) As used in this Section, "high Medicaid

12  hospital" means a general acute care hospital that:

13                   (I) For the payout periods July 1, 2020

14  through December 31, 2022, is not a safety-net

15  hospital or critical access hospital and that has

16  a Medicaid Inpatient Utilization Rate above 30% or

17  a hospital that had over 35,000 inpatient Medicaid

18  days during the applicable period. For the period

19  July 1, 2020 through December 31, 2020, the

20  applicable period for the Medicaid Inpatient

21  Utilization Rate (MIUR) is the rate year 2020 MIUR

22  and for the number of inpatient days it is State

23  fiscal year 2018. Beginning in calendar year 2021,

24  the Department shall use the most recently

25  determined MIUR, as defined in subsection (h) of

26  Section 5-5.02, and for the inpatient day
    HB2771 Enrolled  - 57 - LRB104 08638 BDA 18691 b

1   threshold, the State fiscal year ending 18 months

2   prior to the beginning of the calendar year. For

3   purposes of calculating MIUR under this Section,

4   children's hospitals and affiliated general acute

5   care hospitals shall be considered a single

6   hospital.

7                    (II) For the calendar year beginning January

8   1, 2023, and each calendar year thereafter, is not

9   a public hospital, safety-net hospital, or

10  critical access hospital and that qualifies as a

11  regional high volume hospital or is a hospital

12  that has a Medicaid Inpatient Utilization Rate

13  (MIUR) above 30%. As used in this item, "regional

14  high volume hospital" means a hospital which ranks

15  in the top 2 quartiles based on total hospital

16  services volume, of all eligible general acute

17  care hospitals, when ranked in descending order

18  based on total hospital services volume, within

19  the same Medicaid managed care region, as

20  designated by the Department, as of January 1,

21  2022. As used in this item, "total hospital

22  services volume" means the total of all Medical

23  Assistance hospital inpatient admissions plus all

24  Medical Assistance hospital outpatient visits. For

25  purposes of determining regional high volume

26  hospital inpatient admissions and outpatient
    HB2771 Enrolled     - 58 - LRB104 08638 BDA 18691 b

1   visits, the Department shall use dates of service

2   provided during State Fiscal Year 2020 for the

3   Payout Quarter beginning January 1, 2023. The

4   Department shall use dates of service from the

5   State fiscal year ending 18 month before the

6   beginning of the first Payout Quarter of the

7   subsequent annual determination period.

8   (ii) For the calendar year beginning January 1,

9   2023, the Department shall use the Rate Year 2022

10  Medicaid inpatient utilization rate (MIUR), as defined

11  in subsection (h) of Section 5-5.02. For each

12  subsequent annual determination, the Department shall

13  use the MIUR applicable to the rate year ending

14  September 30 of the year preceding the beginning of

15  the calendar year.

16  (H) General acute care hospitals. As used under this

17  Section, "general acute care hospitals" means all other

18  Illinois hospitals not identified in subparagraphs (A)

19  through (G).

20  (2) Hospitals' qualification for each class shall be

21 assessed prior to the beginning of each calendar year and the

22 new class designation shall be effective January 1 of the next

23 year. The Department shall publish by rule the process for

24 establishing class determination.

25  (3) Beginning January 1, 2024, the Department may reassign

26 hospitals or entire hospital classes as defined above, if
    HB2771 Enrolled      - 59 - LRB104 08638 BDA 18691 b

1 federal limits on the payments to the class to which the

2 hospitals are assigned based on the criteria in this

3 subsection prevent the Department from making payments to the

4 class that would otherwise be due under this Section. The

5 Department shall publish the criteria and composition of each

6 new class based on the reassignments, and the projected impact

7 on payments to each hospital under the new classes on its

8 website by November 15 of the year before the year in which the

9 class changes become effective.

10  (g) Fixed pool directed payments. Beginning July 1, 2020,

11 the Department shall issue payments to MCOs which shall be

12 used to issue directed payments to qualified Illinois

13 safety-net hospitals and critical access hospitals on a

14 monthly basis in accordance with this subsection. Prior to the

15 beginning of each Payout Quarter beginning July 1, 2020, the

16 Department shall use encounter claims data from the

17 Determination Quarter, accepted by the Department's Medicaid

18 Management Information System for inpatient and outpatient

19 services rendered by safety-net hospitals and critical access

20 hospitals to determine a quarterly uniform per unit add-on for

21 each hospital class.

22  (1) Inpatient per unit add-on. A quarterly uniform per

23  diem add-on shall be derived by dividing the quarterly

24  Inpatient Directed Payments Pool amount allocated to the

25  applicable hospital class by the total inpatient days

26  contained on all encounter claims received during the
    HB2771 Enrolled  - 60 - LRB104 08638 BDA 18691 b

1   Determination Quarter, for all hospitals in the class.

2   (A) Each hospital in the class shall have a

3   quarterly inpatient directed payment calculated that

4   is equal to the product of the number of inpatient days

5   attributable to the hospital used in the calculation

6   of the quarterly uniform class per diem add-on,

7   multiplied by the calculated applicable quarterly

8   uniform class per diem add-on of the hospital class.

9   (B) Each hospital shall be paid 1/3 of its

10  quarterly inpatient directed payment in each of the 3

11  months of the Payout Quarter, in accordance with

12  directions provided to each MCO by the Department.

13  (2) Outpatient per unit add-on. A quarterly uniform

14  per claim add-on shall be derived by dividing the

15  quarterly Outpatient Directed Payments Pool amount

16  allocated to the applicable hospital class by the total

17  outpatient encounter claims received during the

18  Determination Quarter, for all hospitals in the class.

19  (A) Each hospital in the class shall have a

20  quarterly outpatient directed payment calculated that

21  is equal to the product of the number of outpatient

22  encounter claims attributable to the hospital used in

23  the calculation of the quarterly uniform class per

24  claim add-on, multiplied by the calculated applicable

25  quarterly uniform class per claim add-on of the

26  hospital class.
    HB2771 Enrolled  - 61 - LRB104 08638 BDA 18691 b

1   (B) Each hospital shall be paid 1/3 of its

2   quarterly outpatient directed payment in each of the 3

3   months of the Payout Quarter, in accordance with

4   directions provided to each MCO by the Department.

5   (3) Each MCO shall pay each hospital the Monthly

6   Directed Payment as identified by the Department on its

7   quarterly determination report.

8   (4) Definitions. As used in this subsection:

9   (A) "Payout Quarter" means each 3 month calendar

10  quarter, beginning July 1, 2020.

11  (B) "Determination Quarter" means each 3 month

12  calendar quarter, which ends 3 months prior to the

13  first day of each Payout Quarter.

14  (5) For the period July 1, 2020 through December 2020,

15  the following amounts shall be allocated to the following

16  hospital class directed payment pools for the quarterly

17  development of a uniform per unit add-on:

18  (A) $2,894,500 for hospital inpatient services for

19  critical access hospitals.

20  (B) $4,294,374 for hospital outpatient services

21  for critical access hospitals.

22  (C) $29,109,330 for hospital inpatient services

23  for safety-net hospitals.

24  (D) $35,041,218 for hospital outpatient services

25  for safety-net hospitals.

26  (6) For the period January 1, 2023 through December
    HB2771 Enrolled    - 62 - LRB104 08638 BDA 18691 b

1   31, 2023, the Department shall establish the amounts that

2   shall be allocated to the hospital class directed payment

3   fixed pools identified in this paragraph for the quarterly

4   development of a uniform per unit add-on. The Department

5   shall establish such amounts so that the total amount of

6   payments to each hospital under this Section in calendar

7   year 2023 is projected to be substantially similar to the

8   total amount of such payments received by the hospital

9   under this Section in calendar year 2021, adjusted for

10  increased funding provided for fixed pool directed

11  payments under subsection (g) in calendar year 2022,

12  assuming that the volume and acuity of claims are held

13  constant. The Department shall publish the directed

14  payment fixed pool amounts to be established under this

15  paragraph on its website by November 15, 2022.

16  (A) Hospital inpatient services for critical

17  access hospitals.

18  (B) Hospital outpatient services for critical

19  access hospitals.

20  (C) Hospital inpatient services for public

21  hospitals.

22  (D) Hospital outpatient services for public

23  hospitals.

24  (E) Hospital inpatient services for safety-net

25  hospitals.

26  (F) Hospital outpatient services for safety-net
    HB2771 Enrolled  - 63 - LRB104 08638 BDA 18691 b

1   hospitals.

2   (7) Semi-annual rate maintenance review. The

3   Department shall ensure that hospitals assigned to the

4   fixed pools in paragraph (6) are paid no less than 95% of

5   the annual initial rate for each 6-month period of each

6   annual payout period. For each calendar year, the

7   Department shall calculate the annual initial rate per day

8   and per visit for each fixed pool hospital class listed in

9   paragraph (6), by dividing the total of all applicable

10  inpatient or outpatient directed payments issued in the

11  preceding calendar year to the hospitals in each fixed

12  pool class for the calendar year, plus any increase

13  resulting from the annual adjustments described in

14  subsection (i), by the actual applicable total service

15  units for the preceding calendar year which were the basis

16  of the total applicable inpatient or outpatient directed

17  payments issued to the hospitals in each fixed pool class

18  in the calendar year, except that for calendar year 2023,

19  the service units from calendar year 2021 shall be used.

20  (A) The Department shall calculate the effective

21  rate, per day and per visit, for the payout periods of

22  January to June and July to December of each year, for

23  each fixed pool listed in paragraph (6), by dividing

24  50% of the annual pool by the total applicable

25  reported service units for the 2 applicable

26  determination quarters.
    HB2771 Enrolled  - 64 - LRB104 08638 BDA 18691 b

1   (B) If the effective rate calculated in

2   subparagraph (A) is less than 95% of the annual

3   initial rate assigned to the class for each pool under

4   paragraph (6), the Department shall adjust the payment

5   for each hospital to a level equal to no less than 95%

6   of the annual initial rate, by issuing a retroactive

7   adjustment payment for the 6-month period under review

8   as identified in subparagraph (A).

9   (h) Fixed rate directed payments. Effective July 1, 2020,

10 the Department shall issue payments to MCOs which shall be

11 used to issue directed payments to Illinois hospitals not

12 identified in paragraph (g) on a monthly basis. Prior to the

13 beginning of each Payout Quarter beginning July 1, 2020, the

14 Department shall use encounter claims data from the

15 Determination Quarter, accepted by the Department's Medicaid

16 Management Information System for inpatient and outpatient

17 services rendered by hospitals in each hospital class

18 identified in paragraph (f) and not identified in paragraph

19 (g). For the period July 1, 2020 through December 2020, the

20 Department shall direct MCOs to make payments as follows:

21  (1) For general acute care hospitals an amount equal

22  to $1,750 multiplied by the hospital's category of service

23  20 case mix index for the determination quarter multiplied

24  by the hospital's total number of inpatient admissions for

25  category of service 20 for the determination quarter.

26  (2) For general acute care hospitals an amount equal
    HB2771 Enrolled  - 65 - LRB104 08638 BDA 18691 b

1   to $160 multiplied by the hospital's category of service

2   21 case mix index for the determination quarter multiplied

3   by the hospital's total number of inpatient admissions for

4   category of service 21 for the determination quarter.

5   (3) For general acute care hospitals an amount equal

6   to $80 multiplied by the hospital's category of service 22

7   case mix index for the determination quarter multiplied by

8   the hospital's total number of inpatient admissions for

9   category of service 22 for the determination quarter.

10  (4) For general acute care hospitals an amount equal

11  to $375 multiplied by the hospital's category of service

12  24 case mix index for the determination quarter multiplied

13  by the hospital's total number of category of service 24

14  paid EAPG (EAPGs) for the determination quarter.

15  (5) For general acute care hospitals an amount equal

16  to $240 multiplied by the hospital's category of service

17  27 and 28 case mix index for the determination quarter

18  multiplied by the hospital's total number of category of

19  service 27 and 28 paid EAPGs for the determination

20  quarter.

21  (6) For general acute care hospitals an amount equal

22  to $290 multiplied by the hospital's category of service

23  29 case mix index for the determination quarter multiplied

24  by the hospital's total number of category of service 29

25  paid EAPGs for the determination quarter.

26  (7) For high Medicaid hospitals an amount equal to
    HB2771 Enrolled  - 66 - LRB104 08638 BDA 18691 b

1   $1,800 multiplied by the hospital's category of service 20

2   case mix index for the determination quarter multiplied by

3   the hospital's total number of inpatient admissions for

4   category of service 20 for the determination quarter.

5   (8) For high Medicaid hospitals an amount equal to

6   $160 multiplied by the hospital's category of service 21

7   case mix index for the determination quarter multiplied by

8   the hospital's total number of inpatient admissions for

9   category of service 21 for the determination quarter.

10  (9) For high Medicaid hospitals an amount equal to $80

11  multiplied by the hospital's category of service 22 case

12  mix index for the determination quarter multiplied by the

13  hospital's total number of inpatient admissions for

14  category of service 22 for the determination quarter.

15  (10) For high Medicaid hospitals an amount equal to

16  $400 multiplied by the hospital's category of service 24

17  case mix index for the determination quarter multiplied by

18  the hospital's total number of category of service 24 paid

19  EAPG outpatient claims for the determination quarter.

20  (11) For high Medicaid hospitals an amount equal to

21  $240 multiplied by the hospital's category of service 27

22  and 28 case mix index for the determination quarter

23  multiplied by the hospital's total number of category of

24  service 27 and 28 paid EAPGs for the determination

25  quarter.

26  (12) For high Medicaid hospitals an amount equal to
    HB2771 Enrolled         - 67 - LRB104 08638 BDA 18691 b

1   $290 multiplied by the hospital's category of service 29

2   case mix index for the determination quarter multiplied by

3   the hospital's total number of category of service 29 paid

4   EAPGs for the determination quarter.

5   (13) For long term acute care hospitals the amount of

6   $495 multiplied by the hospital's total number of

7   inpatient days for the determination quarter.

8   (14) For psychiatric hospitals the amount of $210

9   multiplied by the hospital's total number of inpatient

10  days for category of service 21 for the determination

11  quarter.

12  (15) For psychiatric hospitals the amount of $250

13  multiplied by the hospital's total number of outpatient

14  claims for category of service 27 and 28 for the

15  determination quarter.

16  (16) For rehabilitation hospitals the amount of $410

17  multiplied by the hospital's total number of inpatient

18  days for category of service 22 for the determination

19  quarter.

20  (17) For rehabilitation hospitals the amount of $100

21  multiplied by the hospital's total number of outpatient

22  claims for category of service 29 for the determination

23  quarter.

24  (18) Effective for the Payout Quarter beginning

25  January 1, 2023, for the directed payments to hospitals

26  required under this subsection, the Department shall
    HB2771 Enrolled  - 68 - LRB104 08638 BDA 18691 b

1   establish the amounts that shall be used to calculate such

2   directed payments using the methodologies specified in

3   this paragraph. The Department shall use a single, uniform

4   rate, adjusted for acuity as specified in paragraphs (1)

5   through (12), for all categories of inpatient services

6   provided by each class of hospitals and a single uniform

7   rate, adjusted for acuity as specified in paragraphs (1)

8   through (12), for all categories of outpatient services

9   provided by each class of hospitals. The Department shall

10  establish such amounts so that the total amount of

11  payments to each hospital under this Section in calendar

12  year 2023 is projected to be substantially similar to the

13  total amount of such payments received by the hospital

14  under this Section in calendar year 2021, adjusted for

15  increased funding provided for fixed pool directed

16  payments under subsection (g) in calendar year 2022,

17  assuming that the volume and acuity of claims are held

18  constant. The Department shall publish the directed

19  payment amounts to be established under this subsection on

20  its website by November 15, 2022.

21  (19) Each hospital shall be paid 1/3 of their

22  quarterly inpatient and outpatient directed payment in

23  each of the 3 months of the Payout Quarter, in accordance

24  with directions provided to each MCO by the Department.

25  (20) Each MCO shall pay each hospital the Monthly

26  Directed Payment amount as identified by the Department on
    HB2771 Enrolled       - 69 - LRB104 08638 BDA 18691 b

1   its quarterly determination report.

2   Notwithstanding any other provision of this subsection, if

3 the Department determines that the actual total hospital

4 utilization data that is used to calculate the fixed rate

5 directed payments is substantially different than anticipated

6 when the rates in this subsection were initially determined

7 for unforeseeable circumstances (such as the COVID-19 pandemic

8 or some other public health emergency), the Department may

9 adjust the rates specified in this subsection so that the

10 total directed payments approximate the total spending amount

11 anticipated when the rates were initially established.

12  Definitions. As used in this subsection:

13  (A) "Payout Quarter" means each calendar quarter,

14  beginning July 1, 2020.

15  (B) "Determination Quarter" means each calendar

16  quarter which ends 3 months prior to the first day of

17  each Payout Quarter.

18  (C) "Case mix index" means a hospital specific

19  calculation. For inpatient claims the case mix index

20  is calculated each quarter by summing the relative

21  weight of all inpatient Diagnosis-Related Group (DRG)

22  claims for a category of service in the applicable

23  Determination Quarter and dividing the sum by the

24  number of sum total of all inpatient DRG admissions

25  for the category of service for the associated claims.

26  The case mix index for outpatient claims is calculated
    HB2771 Enrolled     - 70 - LRB104 08638 BDA 18691 b

1   each quarter by summing the relative weight of all

2   paid EAPGs in the applicable Determination Quarter and

3   dividing the sum by the sum total of paid EAPGs for the

4   associated claims.

5   (i) Beginning January 1, 2021, the rates for directed

6 payments shall be recalculated in order to spend the

7 additional funds for directed payments that result from

8 reduction in the amount of pass-through payments allowed under

9 federal regulations. The additional funds for directed

10 payments shall be allocated proportionally to each class of

11 hospitals based on that class' proportion of services.

12  (1) Beginning January 1, 2024, the fixed pool directed

13  payment amounts and the associated annual initial rates

14  referenced in paragraph (6) of subsection (f) for each

15  hospital class shall be uniformly increased by a ratio of

16  not less than, the ratio of the total pass-through

17  reduction amount pursuant to paragraph (4) of subsection

18  (j), for the hospitals comprising the hospital fixed pool

19  directed payment class for the next calendar year, to the

20  total inpatient and outpatient directed payments for the

21  hospitals comprising the hospital fixed pool directed

22  payment class paid during the preceding calendar year.

23  (2) Beginning January 1, 2024, the fixed rates for the

24  directed payments referenced in paragraph (18) of

25  subsection (h) for each hospital class shall be uniformly

26  increased by a ratio of not less than, the ratio of the
    HB2771 Enrolled  - 71 - LRB104 08638 BDA 18691 b

1   total pass-through reduction amount pursuant to paragraph

2   (4) of subsection (j), for the hospitals comprising the

3   hospital directed payment class for the next calendar

4   year, to the total inpatient and outpatient directed

5   payments for the hospitals comprising the hospital fixed

6   rate directed payment class paid during the preceding

7   calendar year.

8   (j) Pass-through payments.

9   (1) For the period July 1, 2020 through December 31,

10  2020, the Department shall assign quarterly pass-through

11  payments to each class of hospitals equal to one-fourth of

12  the following annual allocations:

13  (A) $390,487,095 to safety-net hospitals.

14  (B) $62,553,886 to critical access hospitals.

15  (C) $345,021,438 to high Medicaid hospitals.

16  (D) $551,429,071 to general acute care hospitals.

17  (E) $27,283,870 to long term acute care hospitals.

18  (F) $40,825,444 to freestanding psychiatric

19  hospitals.

20  (G) $9,652,108 to freestanding rehabilitation

21  hospitals.

22  (2) For the period of July 1, 2020 through December

23  31, 2020, the pass-through payments shall at a minimum

24  ensure hospitals receive a total amount of monthly

25  payments under this Section as received in calendar year

26  2019 in accordance with this Article and paragraph (1) of
    HB2771 Enrolled  - 72 - LRB104 08638 BDA 18691 b

1   subsection (d-5) of Section 14-12, exclusive of amounts

2   received through payments referenced in subsection (b).

3   (3) For the calendar year beginning January 1, 2023,

4   the Department shall establish the annual pass-through

5   allocation to each class of hospitals and the pass-through

6   payments to each hospital so that the total amount of

7   payments to each hospital under this Section in calendar

8   year 2023 is projected to be substantially similar to the

9   total amount of such payments received by the hospital

10  under this Section in calendar year 2021, adjusted for

11  increased funding provided for fixed pool directed

12  payments under subsection (g) in calendar year 2022,

13  assuming that the volume and acuity of claims are held

14  constant. The Department shall publish the pass-through

15  allocation to each class and the pass-through payments to

16  each hospital to be established under this subsection on

17  its website by November 15, 2022.

18  (4) For the calendar years beginning January 1, 2021

19  and January 1, 2022, each hospital's pass-through payment

20  amount shall be reduced proportionally to the reduction of

21  all pass-through payments required by federal regulations.

22  Beginning January 1, 2024, the Department shall reduce

23  total pass-through payments by the minimum amount

24  necessary to comply with federal regulations. Pass-through

25  payments to safety-net hospitals, as defined in Section

26  5-5e.1 of this Code, shall not be reduced until all
    HB2771 Enrolled         - 73 - LRB104 08638 BDA 18691 b

1   pass-through payments to other hospitals have been

2   eliminated. All other hospitals shall have their

3   pass-through payments reduced proportionally.

4   (k) At least 30 days prior to each calendar year, the

5 Department shall notify each hospital of changes to the

6 payment methodologies in this Section, including, but not

7 limited to, changes in the fixed rate directed payment rates,

8 the aggregate pass-through payment amount for all hospitals,

9 and the hospital's pass-through payment amount for the

10 upcoming calendar year.

11  (l) Notwithstanding any other provisions of this Section,

12 the Department may adopt rules to change the methodology for

13 directed and pass-through payments as set forth in this

14 Section, but only to the extent necessary to obtain federal

15 approval of a necessary State Plan amendment or Directed

16 Payment Preprint or to otherwise conform to federal law or

17 federal regulation.

18  (m) As used in this subsection, "managed care

19 organization" or "MCO" means an entity which contracts with

20 the Department to provide services where payment for medical

21 services is made on a capitated basis, excluding contracted

22 entities for dual eligible or Department of Children and

23 Family Services youth populations.

24  (n) In order to address the escalating infant mortality

25 rates among minority communities in Illinois, the State shall,

26 subject to appropriation, create a pool of funding of at least
    HB2771 Enrolled      - 74 - LRB104 08638 BDA 18691 b

1 $50,000,000 annually to be disbursed among safety-net

2 hospitals that maintain perinatal designation from the

3 Department of Public Health. The funding shall be used to

4 preserve or enhance OB/GYN services or other specialty

5 services at the receiving hospital, with the distribution of

6 funding to be established by rule and with consideration to

7 perinatal hospitals with safe birthing levels and quality

8 metrics for healthy mothers and babies.

9   (o) In order to address the growing challenges of

10 providing stable access to healthcare in rural Illinois,

11 including perinatal services, behavioral healthcare including

12 substance use disorder services (SUDs) and other specialty

13 services, and to expand access to telehealth services among

14 rural communities in Illinois, the Department of Healthcare

15 and Family Services shall administer a program to provide at

16 least $10,000,000 in financial support annually to critical

17 access hospitals for delivery of perinatal and OB/GYN

18 services, behavioral healthcare including SUDS, other

19 specialty services and telehealth services. The funding shall

20 be used to preserve or enhance perinatal and OB/GYN services,

21 behavioral healthcare including SUDS, other specialty

22 services, as well as the explanation of telehealth services by

23 the receiving hospital, with the distribution of funding to be

24 established by rule.

25  (p) For calendar year 2023, the final amounts, rates, and

26 payments under subsections (c), (d-2), (g), (h), and (j) shall
    HB2771 Enrolled   - 75 - LRB104 08638 BDA 18691 b

1 be established by the Department, so that the sum of the total

2 estimated annual payments under subsections (c), (d-2), (g),

3 (h), and (j) for each hospital class for calendar year 2023, is

4 no less than:

5   (1) $858,260,000 to safety-net hospitals.

6   (2) $86,200,000 to critical access hospitals.

7   (3) $1,765,000,000 to high Medicaid hospitals.

8   (4) $673,860,000 to general acute care hospitals.

9   (5) $48,330,000 to long term acute care hospitals.

10  (6) $89,110,000 to freestanding psychiatric hospitals.

11  (7) $24,300,000 to freestanding rehabilitation

12  hospitals.

13  (8) $32,570,000 to public hospitals.

14  (q) Hospital Pandemic Recovery Stabilization Payments. The

15 Department shall disburse a pool of $460,000,000 in stability

16 payments to hospitals prior to April 1, 2023. The allocation

17 of the pool shall be based on the hospital directed payment

18 classes and directed payments issued, during Calendar Year

19 2022 with added consideration to safety net hospitals, as

20 defined in subdivision (f)(1)(B) of this Section, and critical

21 access hospitals.

22  (r) Directed payment update. For calendar year 2025, and

23 each calendar year thereafter, the final amounts, rates, and

24 payments for the fixed pool directed payments described in

25 subsection (g) and the fixed rate directed payments described

26 in subsection (h) shall be established by the Department at no
    HB2771 Enrolled         - 76 - LRB104 08638 BDA 18691 b

1 less than the following:

2   (1) $579,261,585 for inpatient services at safety-net

3   hospitals.

4   (2) $763,418,138 for outpatient services at safety-net

5   hospitals.

6   (3) $12,389,160 for inpatient services at critical

7   access hospitals.

8   (4) $137,437,866 for outpatient services at critical

9   access hospitals.

10  (5) $5,418 as a base fixed rate per admit prior to

11  adjusting for acuity, for inpatient services at high

12  Medicaid hospitals.

13  (6) $1,512 as a base fixed rate per paid E-APG prior to

14  adjusting for acuity, for outpatient services at high

15  Medicaid hospitals.

16  (7) $3,898 as a base fixed rate per admit prior to

17  adjusting for acuity, for inpatient services at other

18  acute care hospitals.

19  (8) $1,322 as a base fixed rate per E-APG prior to

20  adjusting for acuity, for outpatient services at other

21  acute hospitals.

22  (9) $773 per day for inpatient services at long term

23  acute care hospitals.

24  (10) $206 per day for inpatient services at

25  freestanding psychiatric hospitals.

26  (11) $223 per claim for outpatient services at
    HB2771 Enrolled  - 77 - LRB104 08638 BDA 18691 b

1   freestanding psychiatric hospitals.

2   (12) $776 per day for inpatient services at

3   freestanding rehabilitation hospitals.

4   (13) $252 per claim for outpatient services at

5   freestanding rehabilitation hospitals.

6   (14) $7,793,812 for inpatient services at public

7   hospitals.

8   (15) $26,849,592 for outpatient services at public

9   hospitals.

10  Implementation of the rate increases described in this

11 subsection (r) shall be contingent on federal approval. The

12 rates for fixed pool directed payments as described in

13 subsection (g) and for fixed rate directed payments as

14 described in subsection (h) shall remain as published by the

15 Department on November 27, 2024 until the Department receives

16 federal approval for the updated rates described in this

17 subsection (r).

18  (s) If, in order to secure approval by the Centers for

19 Medicare and Medicaid Services, the rates under subsection (r)

20 are reduced, the Department may submit a State Plan amendment

21 to increase rates in place at the time of the reduction

22 pertaining to subsection (d-2) to offset the annual amount of

23 reduction to the rates under subsection (r), in amounts equal

24 to the required reduction on a class-specific basis to ensure

25 that funds are not reallocated from one class to another; or

26 the rates in subsection (r) shall be reduced uniformly to the
    HB2771 Enrolled     - 78 - LRB104 08638 BDA 18691 b

1 amounts necessary to achieve approval and the assessments

2 imposed by subsection (a) or (b-5) of Section 5A-2 shall be

3 reduced uniformly to achieve a total annual reduction across

4 both assessments equal to the product of the total annual

5 reduction to payments and .3853. In addition, the assessments

6 shall further be reduced uniformly to achieve a total annual

7 reduction across both assessments equal to the difference of

8 subtracting the product calculated in the previous sentence

9 from the resulting quotient of dividing the product described

10 in the previous sentence by .92 for a reduction to the

11 transfers in subsection 7.16 and 7.17 of Section 5A-8.

12  (t) To provide for the expeditious and timely

13 implementation of the changes made to this Section by this

14 amendatory Act of the 104th General Assembly, the Department

15 may adopt emergency rules as authorized by Section 5-45 of the

16 Illinois Administrative Procedure Act. The adoption of

17 emergency rules is deemed to be necessary for the public

18 interest, safety, and welfare.

19 (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;

20 102-886, eff. 5-17-22; 102-1115, eff. 1-9-23; 103-102, eff.

21 6-16-23; 103-593, eff. 6-7-24; 103-605, eff. 7-1-24.)

22  (305 ILCS 5/5A-14)

23  Sec. 5A-14. Repeal of assessments and disbursements.

24  (a) (Blank). Section 5A-2 is repealed on December 31,

25 2026.
    HB2771 Enrolled        - 79 - LRB104 08638 BDA 18691 b

1   (b) Section 5A-12 is repealed on July 1, 2005.

2   (c) Section 5A-12.1 is repealed on July 1, 2008.

3   (d) Section 5A-12.2 and Section 5A-12.4 are repealed on

4 July 1, 2018, subject to Section 5A-16.

5   (e) Section 5A-12.3 is repealed on July 1, 2011.

6   (f) Section 5A-12.6 is repealed on July 1, 2020.

7   (g) (Blank). Section 5A-12.7 is repealed on December 31,

8 2026.

9 (Source: P.A. 101-650, eff. 7-7-20; 102-886, eff. 5-17-22.)

10  (305 ILCS 5/12-4.105)

11  Sec. 12-4.105. Human poison control center; payment

12 program. Subject to funding availability resulting from

13 transfers made from the Hospital Provider Fund to the

14 Healthcare Provider Relief Fund as authorized under this Code,

15 for State fiscal year 2017 and State fiscal year 2018, and for

16 each State fiscal year thereafter in which the assessment

17 under Section 5A-2 is imposed, the Department of Healthcare

18 and Family Services shall pay to the human poison control

19 center designated under the Poison Control System Act an

20 amount of not less than $3,000,000 for each of State fiscal

21 years 2017 through 2020, and for State fiscal years 2021

22 through 2023 an amount of not less than $3,750,000 and for

23 State fiscal year years 2024 through 2026 an amount of not less

24 than $4,000,000, and for State fiscal year 2025 an amount not

25 less than $4,500,000, and for State fiscal year 2026, and each
   HB2771 Enrolled  - 80 - LRB104 08638 BDA 18691 b

1 fiscal year thereafter, an amount of not less than $4,750,000
2 and for the period July 1, 2026 through December 31, 2026 an
3 amount of not less than $2,000,000, if the human poison
4 control center is in operation.
5 (Source: P.A. 102-886, eff. 5-17-22; 103-102, eff. 6-16-23.)

6  Section 99. Effective date. This Act takes effect upon

7 becoming law.
Every fact on this page links to its source, starting with the official bill record.