§10.13. Hospital stabilization formula and assessment; Hospital Stabilization Fund

            (A) Hospital Stabilization Formula. (1) The legislature may annually adopt a Hospital Stabilization Formula, hereafter referred to in this Section as "the formula", by concurrent resolution by a favorable vote of a majority of the elected members of each house. Such resolution shall be referred to the standing committees of the legislature that hear the general appropriation bill. The formula shall, to the maximum extent possible, enhance the economic viability of Louisiana hospitals and reduce shifting the cost of caring for Louisiana's needy residents to the state's insured residents.

            (2)(a) The first formula established pursuant to Subparagraph (1) of this Paragraph, which shall require a favorable vote of two-thirds of the elected members of each house for adoption, shall define and establish as the base reimbursement level under the Louisiana medical assistance program provided for in Title XIX of the Social Security Act, hereafter referred to as the "Medicaid Program", to hospitals for inpatient and outpatient services in Fiscal Year 2012-2013. The formula shall also provide for the preservation and protection of rural hospitals as provided for by law. Each formula established thereafter may apply a rate of inflation, which shall not be a negative rate, to the base reimbursement level from the previous formula adopted by the legislature.

            (b) Each formula shall also include and establish assessments to be paid by hospitals and the basis on which such assessments shall be calculated, provided the amount of the assessments does not exceed the nonfederal share of the reimbursement enhancements.

            (c) Each formula shall also establish reimbursement enhancements under the Medicaid Program, or its successor, achieving the maximum reimbursement by federal law and resulting in distributing such reimbursement enhancements exclusively among hospitals for hospital services. Reimbursement enhancements may also be distributed for uninsured services delivered.

            (d) Each formula shall also include any additional provisions necessary to the implementation of the formula. Neither the assessments nor the reimbursement enhancements established in the formula adopted by the legislature shall be implemented until each has been approved by the federal authority which administers the Medicaid Program.

            (3) The base reimbursement level resulting from the formula shall not be paid from the Hospital Stabilization Fund.

            (4) No additional assessment shall be collected and any assessment shall be terminated for the remainder of the fiscal year from the date on which any of the following occur:

            (a) The legislature fails to adopt a formula for the subsequent fiscal year.

            (b) The Louisiana Department of Health, or its successor or contractors, reduces or does not pay reimbursement enhancements established in the current formula as adopted by the legislature.

            (c) The appropriations provided for in Subparagraph (B)(2) of this Section are reduced.

            (5) The treasurer shall return any monies collected after the date of termination of an assessment to the hospital from which it was collected.

            (B) Appropriation. (1) The legislature shall annually appropriate an amount necessary to fund the base reimbursement level for hospitals established in the most recent formula adopted by the legislature.

            (2) The legislature shall annually appropriate the balance of the Hospital Stabilization Fund solely to fund the reimbursement enhancements as provided in the most recent formula adopted by the legislature.

            (3) Notwithstanding Article VII, Section 10(F) of this constitution, neither the governor nor the legislature may reduce the appropriation funding the base reimbursement level or the reimbursement enhancements to satisfy a budget deficit, except the governor may reduce the appropriation to the base reimbursement level if the following occur:

            (a) Such reduction does not exceed the average reduction of those made to the appropriations and reimbursement for other providers under the Medicaid Program, or its successor; and

            (b)(i) If the legislature is in session, the reduction is consented to in writing by two-thirds of the elected members of each house in a manner provided by law; or

            (ii) If the legislature is not in session, the reduction is approved by two-thirds of the members of the Joint Legislative Committee on the Budget, or its successor.

            (C) Hospital Stabilization Fund. There is hereby established as a special fund in the state treasury the Hospital Stabilization Fund, hereafter referred to as "the fund". After compliance with the requirements of Article VII, Section 9(B) of this constitution relative to the Bond Security and Redemption Fund, the treasurer shall deposit all proceeds from the assessment collected pursuant to the Hospital Stabilization Formula provided for in this Section. The monies in the fund shall be invested in the same manner as monies in the state general fund, and all interest earned on the investment of the fund shall be deposited in and credited to the fund. Appropriations from the fund shall be restricted to funding the reimbursement enhancements established in the Hospital Stabilization Formula adopted by the legislature for the fiscal year in which the assessment is collected.

            Acts 2013, No. 438, §1, eff. Dec. 9, 2014.