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                                                      PRINTER'S NO. 1634

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1250 Session of 2001


        INTRODUCED BY ROBBINS, LAVALLE, TOMLINSON, EARLL, WAUGH, BODACK,
           HOLL, KUKOVICH, LEMMOND, GERLACH, ERICKSON, RHOADES, MUSTO,
           ORIE, MADIGAN, SCARNATI, SCHWARTZ, KASUNIC AND ARMSTRONG,
           DECEMBER 13, 2001

        REFERRED TO PUBLIC HEALTH AND WELFARE, DECEMBER 13, 2001

                                     AN ACT

     1  Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
     2     act to consolidate, editorially revise, and codify the public
     3     welfare laws of the Commonwealth," further providing for
     4     certain medical assistance payments.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  Section 443.3 of the act of June 13, 1967
     8  (P.L.31, No.21), known as the Public Welfare Code, amended
     9  November 28, 1973 (P.L.364, No.128), is amended to read:
    10     Section 443.3.  Other Medical Assistance Payments.--Payments
    11  on behalf of eligible persons shall be made for other services,
    12  as follows:
    13     (1)  Rates established by the department for outpatient
    14  services as specified by regulations of the department adopted
    15  under Title XIX of the Federal Social Security Act consisting of
    16  preventive, diagnostic, therapeutic, rehabilitative or
    17  palliative services; furnished by or under the direction of a
    18  physician, chiropractor or podiatrist, by a hospital or

     1  outpatient clinic which qualifies to participate under Title XIX
     2  of the Federal Social Security Act, to a patient to whom such
     3  hospital or outpatient clinic does not furnish room, board and
     4  professional services on a continuous, twenty-four hour a day
     5  basis. The following shall apply:
     6     (i)  Except for managed care arrangements, the department
     7  shall pay general acute care hospitals, psychiatric providers
     8  and rehabilitation providers for outpatient services on a fee-
     9  for-service basis.
    10     (ii)  Beginning July 1, 2002, through June 30, 2003, the
    11  department shall pay each hospital, psychiatric provider and
    12  rehabilitation provider an outpatient supplemental payment equal
    13  to fifteen percent of the total payments made to these providers
    14  for outpatient services provided during the previous twelve
    15  months.
    16     (iii)  Beginning July 1, 2003, and thereafter, the department
    17  shall establish an outpatient payment system for hospitals,
    18  psychiatric providers and rehabilitation providers using
    19  procedure and description codes used under the Medicare program.
    20  The rates for each procedure shall not be less than those paid
    21  under the Medicare program. The rates shall be adjusted annually
    22  beginning July 1, 2004, and thereafter.
    23     (2)  Rates established by the department for (i) other
    24  laboratory and X-ray services prescribed by a physician,
    25  chiropractor or podiatrist and furnished by a facility other
    26  than a hospital which is qualified to participate under Title
    27  XIX of the Federal Social Security Act, (ii) physician's
    28  services consisting of professional care by a physician,
    29  chiropractor or podiatrist in his office, the patient's home, a
    30  hospital, a nursing home or elsewhere, (iii) the first three
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     1  pints of whole blood, (iv) remedial eye care, as provided in
     2  Article VIII consisting of medical or surgical care and aids and
     3  services and other vision care provided by a physician skilled
     4  in diseases of the eye or by an optometrist which are not
     5  otherwise available under this Article, (v) special medical
     6  services for school children, as provided in the Public School
     7  Code of 1949, consisting of medical, dental, vision care
     8  provided by a physician skilled in diseases of the eye or by an
     9  optometrist or surgical care and aids and services which are not
    10  otherwise available under this article.
    11     Section 2.  This act shall take effect immediately.













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