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SB 249 (2025)

Revise funding for uncompensated care

This bill became law.

Last updated 2025-12-04 11:32 pm
Summary:

Revises the funding mechanism for uncompensated care costs under the state Medicaid program, including the distribution of disproportionate share hospital payments. In other words, this bill addresses the funding hospitals receive for providing uncompensated care to low income patients. This bill sends 80% of the funds to hospitals and 20% of the funds to community health centers, mental health centers and substance abuse treatment programs. This is a lower percentage than hospitals received in the past.

The Senate amended the bill, increasing the share of funds going to hospitals to 91%. The amended the bill also establishes a committee to study the Medicaid enhancement tax and disproportionate share hospital payments.

The House amended the bill to remove the reference to 91% and instead reference an “amount determined by the commissioner, subject to any agreements between the state and the hospitals.” This reflects a settlement agreement between the Hospital Association and the state.

Bill Sponsor:
Regina M. Birdsell
Republican party logo
Status:
SIGNED BY GOVERNOR
Status Detail:
Signed by Governor
Public Hearing Date:
04/29/2025 10:20 am
Public Hearing Location:
LOB Room 202-204
House Voting Date:
06/05/2025
Senate Voting Date:
03/27/2025
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