View Amendment Current Amendment: 61 to Bill 3710 Reps. COBB-HUNTER, RUTHERFORD, MITCHELL, J.E. SMITH proposes the following Amendment No. 61 to H.3710 as introduced by Ways & Means
(Doc Name COUNCIL\NBD\3710C003.NBD.AC13.DOCX):

EXPLANATION:

Amend the bill, as and if amended, page 525, after line 7, by adding a new Part appropriately numbered to read:

/PART __

PERMANENT PROVISIONS

SECTION 1

TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 44-6-75 SO AS TO PROVIDE THAT FROM JANUARY 1, 2014 THROUGH DECEMBER 31, 2016, MEDICAID ELIGIBILITY IS EXPANDED PURSUANT TO THE      PATIENT PROTECTION AND AFFORDABLE CARE ACT TO INCLUDE INDIVIDUALS AGE NINETEEN THROUGH AGE SIXTY-FOUR AND FAMILIES WITH INCOME AT OR BELOW ONE HUNDRED THIRTY-THREE PERCENT OF THE FEDERAL POVERTY LEVEL; BY ADDING SECTION 44-6-78 SO AS TO ESTABLISH THE 'CONTINGENCY FUND FOR CONTINUED CARE' FOR CONTINUATION OF MEDICAID EXPANSION BEYOND 2016, IF AUTHORIZED BY THE GENERAL ASSEMBLY, WITH FUNDS FROM HEALTH CARE SAVINGS REALIZED FROM PROGRAMS OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES, PREVENTIVE SERVICES PROVIDED PURSUANT TO THE ACA, AND STATE TAX REVENUE GENERATED BY THE FEDERAL FUNDS RECEIVED FOR MEDICAID EXPANSION; AND TO PROVIDE THAT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES SHALL MAKE ALL MEDICAID AUTHORIZATIONS NECESSARY TO CARRY OUT THIS SECTION, PROVIDED THAT THE FEDERAL GOVERNMENT FUNDS ONE HUNDRED PERCENT OF THE COST OF SERVICES RENDERED FOR NEWLY ELIGIBLE MEDICAID EXPANSION BENEFICIARIES.

A. Whereas, the Patient Protection And Affordable Care Act of 2010 (ACA), as amended, provides for the expansion of the Medicaid program to cover adults age nineteen through sixty-four and families that have income at or below one hundred and thirty-three percent of the federal poverty level (FPL), which includes a five percent income disregard, equating to income at or below one hundred thirty-eight percent of the FPL; and

     Whereas, the ACA stipulates that from January 1, 2014 through December 31, 2016, the federal government will fund one hundred percent of a state's cost of Medicaid services provided to newly eligible beneficiaries under the expansion; and

     Whereas, the latest data from the Milliman study prepared for the South Carolina Department of Health and Human Services estimates that approximately 351,000 South Carolinians would become newly eligible for Medicaid under the expansion; and

     Whereas, according to the Milliman study (April, 2012), opting to participate in the Medicaid expansion for 2014-2016 results in an estimated $4.1 billion in new federal funding, which includes only half of the funding for 2014, and an estimated $81 million in administrative costs, which includes some cost elements that would exist even if South Carolina did not adopt the expansion, resulting in a net benefit to the State of approximately $4 billion; and

     Whereas, based on data from the Milliman Study (April, 2012) it is estimated that more than $236 million in state tax revenue would be generated during 2014-2016, with only the second half of 2014 included in the estimate, from the expansion funds and the resultant job growth, both within and outside the health care industry, income gains, and additional purchasing, which replaces, almost three-fold, the $81 million projected to be expended by the state in administrative costs to implement the expansion; and
     
     Whereas, an additional requirement of the ACA provides that beginning in 2014 and continuing through 2020 reimbursement of federal Medicaid and Medicare Disproportionate Hospital Share funds will be reduced whether or not a state opts to participate in the Medicaid expansion; the amount of federal funds the State is projected to lose from this reduction is $2.6 billion for the years 2014 through 2020; however, if the state participates in Medicaid Expansion, these losses would be substantially offset by the federal expansion funds coming into the state; and

           Whereas, as South Carolinians have begun to understand Medicaid expansion and its ramifications, a constantly growing number of organizations have voiced their strong support for the expansion; one of the most recent proponents is the Charleston Metro Chamber of Commerce, with eighteen hundred plus members, which has embraced the expansion due to the reduction in healthcare costs for businesses and the commensurate growth and expansion of business, industry, and jobs; the South Carolina Small Business Chamber of Commerce, which for the past decade has tried to address its members' top priority, 'the cost of health insurance', vociferously endorses Medicaid expansion and the reduction in or elimination of health insurance premiums, a substantial savings for its members; AARP found that fifty-four percent of older adults in the State support Medicaid expansion, even though many of them already receive Medicare and would not directly benefit; the South Carolina Hospital Association, the South Carolina Primary Care Association, the American Heart Association, and United Way all have recognized that not only will many of their members and patients directly benefit from Medicaid expansion, but also that the expansion will help with a more efficient and effective use of our health care resources; and in addition, print and visual media across the state promote the value of Medicaid expansion for the State, its residents and businesses, and the overall health and productivity of the State; and
     
     Whereas, not only does opting into Medicaid expansion significantly impact and improve the state's economic welfare, but exercising this option also gives hundreds of thousands of South Carolinians the opportunity to improve their individual health and their chances of entering and maintaining a place in the workforce as a contributing, productive member of their communities and the State. Now, therefore,

B. The Department of Health and Human Services shall make all Medicaid authorizations required to implement the Medicaid expansion provided for in this Section; however, implementation of this Section is dependent upon the federal government providing one hundred percent of the Medicaid funding necessary for expansion in accordance with the Patient Protection and Affordable Care Act, P.L. 111-148 of 2010, as amended by the Health Care and Education Reconciliation Act, P.L. 111-152 of 2010.

C. Article 1, Chapter 6, Title 44 of the 1976 Code is amended by adding:

     "Section 44-6-75.       Beginning January 1, 2014, through December 31, 2016, the following are eligible for Medicaid pursuant to the provisions of the Patient Protection and Affordable Care Act, P.L. 111-148 of 2010, as amended by the Health Care and Education Reconciliation Act, P. L. 111-152, of 2010:
           (1)      a family with income at or below one hundred thirty-three percent of the federal poverty level, which includes a five percent income disregard; and
           (2)      a childless individual nineteen through sixty-four years of age with income at or below one hundred thirty-three percent of the federal poverty level, which includes a five percent income disregard.            

     Section 44-6-78.      (A)       There is created the Contingency Fund for Continued Care in the Office of the State Treasurer, a fund separate and distinct from the general fund of the state for the purpose of preserving funds for the continuation of Medicaid Expansion provided for in Section 44-6-75 if authorized by the General Assembly pursuant to subsection (D). The following must be deposited into this fund:
           (1) health care savings generated from programs, policies, and procedures of the Department of Health and Human Services newly implemented or expanded as an alternative to Medicaid expansion during 2014 through 2016;
           (2) savings realized from preventive services provided to newly eligible Medicaid beneficiaries pursuant to the Medicaid expansion during 2014 through 2016:
           (3) notwithstanding any other provision of law providing for the disposition of any tax or fee, net state tax revenue generated from implementation of the Medicaid expansion and the commensurate growth in jobs and increased income and purchasing.
     (B)(1)      To determine the funds to be deposited in the Contingency Fund for Continued Care pursuant to items       (1) and (2) of subsection (A), the State Budget and Control Board, Research and Statistics Division, shall work in conjunction with the Department of Health and Human Services and in consultation with the South Carolina Primary Care Association and the South Carolina Hospital Association and shall submit their findings to the State Budget and Control Board.
           (2)      The Department of Revenue shall determine the funds to be deposited in the Contingency Fund for Continued Care pursuant to item (3) of subsection (A) and shall submit its findings to the Budget and Control Board.
     (C)      The State Budget and Control Board shall certify to the State Treasurer the transfer of funds pursuant to this Section to the Contingency Fund for Continued Care.
     (D)      The General Assembly may authorize the continued participation of the State in Medicaid Expansion, in accordance with the provisions of the Patient Protection and Affordable Care Act, if the General Assembly finds that Medicaid Expansion, as provided for in Section 44-6-75, has substantially achieved its goals of providing Medicaid to newly eligible beneficiaries and generating health care savings and state tax revenue."/

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