SUBTITLE A. MEDICAID HOSPITAL SUPPLEMENTAL AND DIRECTED PAYMENTS

(a) Section 5062(5) (D.C. Official Code § 44-664.01(5)) is amended by striking the phrase "September 30 of the period 3 fiscal years prior to the fiscal year the fee is assessed" and inserting the phrase "September 30, 2018" in its place.

(b) Section 5063(c)(1) (D.C. Official Code § 44-664.02(c)(1)) is amended by striking the semicolon and inserting the phrase ", either directly or through payments to managed care organizations;" in its place.

(c) Section 5064(a)(1) and (2) (D.C. Official Code § 44-664.03(a)(1) and (2)) is amended to read as follows:

" (1) An amount equal to the non-federal share of the total available spending room under the outpatient Medicaid upper payment limit for private hospitals applicable to District Fiscal Year 2020, consistent with requirements and approvals from the United States Department of Health and Human Services, Centers for Medicare and Medicaid Services; plus

" (2) An amount equal to the non-federal share of the total available spending room under the outpatient Medicaid upper payment limit for District operated hospitals applicable to District Fiscal Year 2020, consistent with the federal approval of the authorizing Medicaid State Plan amendment or associated templates and other authorities; plus".

(d) Section 5065(a) (D.C. Official Code § 44-664.04(a)) is amended by striking the phrase "the Centers for Medicare and Medicaid Services approves the Medicaid State Plan amendment" and inserting the phrase "the District obtains approvals required by the Centers for Medicare and Medicaid Services for" in its place.

(e) Section 5066 (D.C. Official Code § 44-664.05) is amended to read as follows:

" Sec. 5066. Medicaid outpatient hospital access payments; payments to MCOs.

" (a) For visits and services beginning October 1, 2020, the District shall pay managed care organizations ("MCOs") at a rate sufficient to support payments to hospitals located in the District for outpatient services at a rate that is not less than 130% of the District Fiscal Year 2020 fee-for-service base rate and shall direct MCOs to pay such rate to their participating hospitals located in the District for such services.

" (b) No payment shall be made under this section until such time that the Centers for Medicare and Medicaid Services approves the Medicaid State Plan amendment, associated template, and other authorities authorizing the Medicaid payments described in this section.

" (c) The Medicaid payment methodologies authorized under this section shall not be altered unless such alteration is necessary to gain approval from the Centers for Medicare and Medicaid Services.".

Sec. 5003. Section 5013(a) of the Medicaid Hospital Inpatient Rate Supplement Act of 2017, effective December 13, 2017 (D.C. Law 22-33; D.C. Official Code § 44-664.13(a)), is amended to read as follows:

" (a) (1) Beginning October 1, 2020, and except as provided in subsection (b) of this section and section 5087 , the District, through the Office of Tax and Revenue, may charge each hospital a fee based on its inpatient net patient revenue.

" (2) The fee shall be charged at a uniform rate necessary to generate no more than $8,454,038 to support inpatient Medicaid Fee-for-Service and managed care rates at the District Fiscal Year 2015 level of not less than 98% of cost to non-specialty hospitals.

" (3) The fee collected pursuant to this section shall be deposited in the Hospital Fund, established by section 5083 .".