§ 40:2017.12 — Prepayment by hospitals of Medicaid settlement

Louisiana § 40:2017.12

• Jurisdiction: Louisiana
• Title 40: Public Health and Safety

Text

§2017.12. Prepayment by hospitals of Medicaid settlement
A. Any hospital licensed by the state of Louisiana shall be allowed to
participate in prepayment of anticipated or owed Medicaid settlements, payable to the
secretary of the Louisiana Department of Health with refund to said hospital to be the
amount in Medicaid reimbursement owed said hospital within one hundred twenty
days after receipt of prepayment.
B. Definitions:
(1) "Clean claim" shall mean a Medicaid claim for services rendered by any
hospital prepared in a manner mandated necessary to specifications and adjudication
requirements as decreed by the federal government and the state of Louisiana.
(2) "Hospital" shall mean any hospital licensed by the state of Louisiana
pursuant to R.S. 40:2100 et seq.
(3) "Medicaid settlement" shall mean any sum of money owed to a hospital
by the state's medical assistance program of a year-end medicaid cost report
settlement from any Fiscal Year 1987-88 or earlier.
C.(1) Any hospital which is owed one or more Medicaid settlements, may,
pursuant to rules promulgated by the secretary of the Louisiana Department of Health
to implement the provisions of this Section, pay to the secretary of the Louisiana
Department of Health an amount equal to the current years' state reimbursement rate
as set by the federal government for Louisiana, for said hospital's Medicaid
settlement due and owing, or said hospital's anticipated Medicaid settlement as of the
date of prepayment.
(2) A "Hospital Prepayment Receipt" shall be issued by the secretary of the
Department of Revenue to any hospital participating in prepayment of Medicaid
anticipated following receipt of prepayment by the Louisiana Department of Health
and notification to the Department of Revenue.
D. Except as provided in Subsection F of this Section, hospitals holding or
owning any Hospital Prepayment Receipts may use them in lieu of payment, to
satisfy any obligation due and payable to the state of Louisiana on or after July 1,
1989. Notwithstanding any law to the contrary, all payments made pursuant to this
Section, and the Hospital Prepayment Receipts issued pursuant to this Section, shall
bear no interest except as provided herein.
E. In the event that a hospital chooses to make a payment under the
provisions of this Section, that hospital will be paid by the state's medical assistance
program, in satisfaction of Medicaid settlements due, the amount due and owing said
hospital, in accordance with all "clean claims" presented by said hospital to the
secretary of the Louisiana Department of Health. Said payment to the hospital shall
be made as soon as possible after receipt of the payment made by the hospital
pursuant to this Section, but in no event shall the payment to the hospital be made
later than one hundred twenty days from the date of the prepayment from the
hospital, according to the date on the Hospital Prepayment Receipt.
F. In the event that a hospital participating under the provisions of this
Section, has made a prepayment and is not paid the amount herein specified within
one hundred twenty days, then the hospital may send to the secretary of the Louisiana
Department of Health, via certified mail, a notice of default. Thereafter, that
hospital's Hospital Prepayment Receipt shall bear interest at the rate of three points
above the current Treasury Bill rate as affixed on day one hundred and twenty from
the day of the Hospital Prepayment Receipt, and the hospital may use said receipt,
and any interest due thereon, to satisfy any obligation due and payable to the state of
Louisiana on or after July 1, 1989.
G. The secretary of the Louisiana Department of Health shall promulgate
rules in accordance with the Administrative Procedure Act and other state and federal
laws and regulations to implement the provisions of this Section.

Legislative History

Acts 1988, No. 1004, §1, eff. Aug. 1, 1988; Acts 1997, No. 658, §2.