HD28 - Recommended Statutory Modifications of the Code of Virginia Authorizing the Creation of the Virginia Indigent Health Care Trust Fund


Executive Summary:
To The Members of the General Assembly

Pursuant to § 32.1-340 of Chapter 635 of the Acts of Assembly (H 1859), and on behalf of the Board of Medical Assistance Services, I am pleased to submit the Board's Report on statutory modifications that the Board believes are required to effectively implement the Virginia Indigent Health Care Trust Fund.

The proposed statutory modifications contained in the report emerged from recommendations made to the Board by the Board's Technical Advisory Panel (TAP), created by § 32.1-335 to advise the Board on the operation of the Trust Fund. The TAP, which consists of seven members, three of whom represent hospital interests, met on five separate occasions to develop suggested policy and operating procedure for the Trust Fund. As a result of their discussions, the TAP identified statutory modifications that were proposed to the Board and accepted by the Board.

Briefly, the proposed statutory modifications are as follows:

1. It is proposed that § 32.1-332 and § 32.1-333 be amended by changing the definition of "charity care" contained in these sections from 100 percent of the federal poverty level to 150 percent. This modification is proposed to make the definition consistent with Board's recommendation on adjusting the definition of charity care.

2. It is proposed that § 32.1-336 be amended by extending the date by which hospitals are required to submit charity care data and by allowing hospitals to have one 30-day filing extension. These modifications are proposed to account for the variance in ending dates for hospital fiscal years and to bring the filing requirements of this legislation into conformity with the Virginia Health Services Cost Review Council's hospital filing requirements.

3. It is proposed that § 32.1-337 and § 32.1-338 be amended by making technical changes in the language of each of the two sections that will clarify the processes for calculating hospital contributions to the Fund and payments to hospitals from the Fund.

4. It is proposed that § 32.1-339 be amended by changing the month in which hospitals are required to contribute to the Fund from December of each calendar year to January of each calendar year, beginning with January of 1991. This modification is proposed to ensure consistency between the new charity care data submission dates proposed for § 32.1-336 and the date hospitals make their contributions to the Fund.

5. It is proposed that § 32.1-341 be amended to correct an error made in citing a section of the legislation.

The specific proposed statutory modifications are attached as part of this report.

Sincerely,

/s/ Bruce U. Kozlowski
Director