Summary:

 House Bill 119 (HB119) modifies the Procurement Code to provide for contract adjustments and requires the state to request adjustments in reimbursement rates for health care. 

Legislation Overview:

 House Bill 119  (HB119)  adds a new Section to the Procurement Code  which states that when a contract with a state agency provides for a contractor to employ persons whose benefits and compensation are subject to adjustment due to changes in state statutes, the contractor may request the state agency to amend the terms of the contract to accommodate any increase to the contractor's expenses due to statutory adjustments in employee compensation and benefits.  Any such request on the part of the contractor shall be made to the state agency within forty-five days of the date on which the relevant changes in state statutes become law.
The state agency responsible for providing payment to such Medicaid or Medicare providers shall request the federal centers for Medicare and Medicaid Services to amend Medicaid or Medicare reimbursement rates to accommodate any increase to the Medicaid or Medicare provider's expenses due to statutory adjustments in employee compensation and benefits. 
HB119 directs the responsible state agency to make such a request within forty-five days of the date on which the relevant changes in state statutes become law.


 

Amendments:

 Amended February 07,2025 in HHHC
HHHCa/HB119: The Health and Human Services Committee amends HB119 as follows: 
Insert on Page1, line 21 after the term statutes with the term “or rules”. To read: 
“are subject to adjustment due to changes in state statutes “or rules” the”
Insert on Page 1 line 24 the term “or regulatory” after the term “statutory” to read: 
…expenses due to statutory “or regulatory” adjustments in employee compensation…
Insert page 2, line 3 to read after the term “law” insert “or rules becomes effective”.
To read: “ law or rules become effective.”  The state agency shall respond in writing to any such….
 On page 2, line 9, after "statutes", insert "or rules".  
“changes in state statutes “or rules,” the state agency responsible for..
On page 2, line 13, after "statutory", insert "or regulatory". To read: 
..medicaid provider's expenses due to statutory “or regulatory “adjustments in”…
On page 2, line 17, after "law", insert "or rules become effective". To read:
“law or rules become effective”.
On page 3, line 8, after "statutes", insert "or rules". To read:
“..adjustment due to changes in state statutes, “or rules” the state agency.”
On page 3, line 13, after "statutory", insert "or regulatory". To read:
“expenses due to statutory “or regulatory” adjustments in employee compensation.”
On page 3, line 16, after "law", insert "or rules become effective"., To read: 
“relevant changes in state statutes become law or rules become effective.”
HB 119a  is referred to the House Appropriations and Finance Committee