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hospitals, including those owned or operated by the state, except 1 those classified as critical access hospitals or state psychiatric 2 institutions. The health care authority shall submit reports to the 3 governor and legislature by November 1, 2021, and by November 1, 4 2022, that evaluate whether savings continue to exceed costs for this 5 program. If the certified public expenditures (CPE) program in its 6 current form is no longer cost-effective to maintain, the health care 7 authority shall submit a report to the governor and legislature 8 detailing cost-effective alternative uses of local, state, and 9 federal resources as a replacement for this program. During fiscal 10 year 2022 and fiscal year 2023, hospitals in the program shall be 11 paid and shall retain one hundred percent of the federal portion of 12 the allowable hospital cost for each medicaid inpatient fee-for- 13 service claim payable by medical assistance and one hundred percent 14 of the federal portion of the maximum disproportionate share hospital 15 payment allowable under federal regulations. For the purpose of 16 determining the amount of any state grant under this subsection, 17 payments will include the federal portion of medicaid program 18 supplemental payments received by the hospitals. Inpatient medicaid 19 payments shall be established using an allowable methodology that 20 approximates the cost of claims submitted by the hospitals. Payments 21 made to each hospital in the program in each fiscal year of the 22 biennium shall be compared to a baseline amount. The baseline amount 23 will be determined by the total of (a) the inpatient claim payment 24 amounts that would have been paid during the fiscal year had the 25 hospital not been in the CPE program based on the reimbursement rates 26 developed, implemented, and consistent with policies approved in the 27 2021-2023 biennial operating appropriations act and in effect on July 28 1, 2015, (b) one-half of the indigent assistance disproportionate 29 share hospital payment amounts paid to and retained by each hospital 30 during fiscal year 2005, and (c) all of the other disproportionate 31 share hospital payment amounts paid to and retained by each hospital 32 during fiscal year 2005 to the extent the same disproportionate share 33 hospital programs exist in the 2019-2021 fiscal biennium. If payments 34 during the fiscal year exceed the hospital's baseline amount, no 35 additional payments will be made to the hospital except the federal 36 portion of allowable disproportionate share hospital payments for 37 which the hospital can certify allowable match. If payments during 38 the fiscal year are less than the baseline amount, the hospital will 39 be paid a state grant equal to the difference between payments during 40 p. 963 ESSB 5187.SL