HomeMy WebLinkAboutResolutions - 1982.09.09 - 13947MISCELLANEOUS RESOLUTION 82272 September 9, 1982 .
BY: FINANCE CONMITTEE, G. WILLIAM CADDELL, CHAIRPERSON
IN RE: REPEAL OF ACT 216 of 1979
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Mr. Chairperson, Ladies and Gentlemen:
WHEREAS Section 400.66i of Act 216 of 1979 changed the procedure in
the method of payment of hospitalization and doctor costs for individuals
qualified for General Relief under Social Services from payments directly
out of the County Social Services Department to payments out of the State
Social Services Departments and rebilling the County for said payments; and
WHEPEAS Act 216 of 1979 also determined a formula to compute an average
cost per day for hospital cost and doctor costs which are billed to counties;
and
WHEREAS said costs per day are computed annually, figured on three
factors which include inflation, volume and intensity; and
WHEREAS this method of payment has resulted in the County reimbursing the
State more than the State's actual approved payment; and
WHEREAS H. B. No. 5110 was introduced and referred to the Committee on
Appropriations, which repeals section 400.661 sub-section 2, has been in
Committee since October 7, 1981; and
WHEREAS it is in the interest of this County to go on record as support-
ing repeal of section 400.66i. •
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners
go on record as supporting any legislation repealling section 400.66i to restore
the County Social Service Department the authority to review, approve and pay
said hospital and doctor bills.
BE IT FURTHER RESOLVED the Oakland County Board of Commissioners urge its
legislatures to support H.B. #5110 or introdUce the necessary legislation to
repeal this Act.
BE IT FURTHER RESOLVED that the Chairperson of the Board of Commissioners
directs the County Civil Counsel's Office to review said Act 216 of 1979 to
determine if said legislation is in violation of the Headlee Amendment of the --
Michigan State Constitution.
Mr. Chairperson, on behalf of the Finande Committee, I move the adoption of
the foregoing resolution.
FINANCE COMMITTEE
/4a404(64401
Oakland County Obligation to Reimburse State for Hospitalization and •Uooto-s
under Act 216.
$ubiect:
CAX3..AND COUNTY
INT.71,76,VV747,4TAI M7)40
Dale August 25, 1932
From:. Barbara Talley, Budget Analyst
To • James M. Brennan, Director Management and Budget
Public Act 216, M.C.L.A, 400.66i became effective Cctober 1, 1980,
Section 400.66 i was an amendment to P.A. 216 to change the method for which
Counties reimburse. doctors and hospitals forlresident treatment, (See Attach-
ment A).
400.66i
Section (1) "The State departent shall reimburse the hospital in accordane_7-:
with estab3ished hospital reimbursement principles under title 19 of the social
security act, 42U.S.C., 1396 to 1396K. Reimbursement will be based on eligi,
bility information provided to the State department by the County department."
Explanation
According to Vivian Roeder, Department Of Social Services, Lansing, hospitals
are paid a certain percentage'of what is charged based upon an annual State audit,
This may differ from what IS computed for County reimbursement.
: - - -
Doctors are paid the lesser of either the fee for service or a fee screen
established by the State.
Section (2) "A county department of soCial Services shall reimburse the state for
payment made under this section for hospitalization of persons determined by the .
county .department to be eligible for hospitalization under section 66a at a rate
not less than the county department reimbursed hospitals during the county de-
partment's full fiscal year immediately before the effective date of this section:
A county reimbursement rate shall be adjusted annually and consistent with the .changes
in the hospital cost index utilized in reimbursement under title 19 of the social
security act, 42 U.S.C. 1396 to 1396 K...." I
Explanation
Twelve counties.' base year rates were calculated using the following formula7
Total FY 1979 Expenditures (Hospital + Physician) - Base -year rate = Total- FY 1979 Patient Days
The base year rate is an average cost pr inpatient hospital day. for the
County's fiscal year, 1979 as reported on each County's Dss-206 report.
Of the 12 counties calculated for average cost per day, Oakland County was the
highest rate at $290.17 (See attachment B). IA weighted average cost per day was
calculated for the other 72 counties and ,$213.75 was the average_
1979 $290.17
1980 318_32 9.7%
1981 350.79 10.2%
1982 383.76 9-4%
. The reimbursement formula, used by the State to determine the County's share .1 the program costs -is calculated, as follows:
Year Rate % Increase
House Bill No.5110
cc.: _Jeff Pardee
John Foster
1 Each year the base rate is adjusted by a hospital Cost Index established
in a State Plan.
• According to Dawn Hedgecock, State Department of Medical Services, the
Hosoital.Cost Index (HCI) inoldes three factors:
1) Inflation
2) Volume
3) Intensity
. Oakland County's rates since 1979 are as follows:
Reimbursement = [(Base year rate HCI) ± Base year rate] x Number of Patient Days
Each of the twelve counties had an opportunity to appeal its base year rate by
.supplying 'information as to the discrepancy in the data used. This appeal by means
of a certified letter should have been postmarked by December 31, 1980.
H.B. No. 5110 introduced by Representatives Pstling and Dillingham on October 7,
1981.repeaIs section 400.66i of p.A.,.2.16.
-The bill was introduced and referred to the committee on Appropriations and
has been in that Committee since October 7, 1981.
#82272 September 9, 1982
Moved by Caddell supported by Aaron the resolution be adopted.
The Chairperson referred the resolution to. the General Government
Committee and the Health and Human Resources COmmittee. There were no objections.