AN ACT CONCERNING PURCHASE OF SERVICE CONTRACTS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

That section 4-70b of the general statutes be amended to reform reimbursement rates for health and human services purchased in the state, including, but not limited to, by (1) allowing human service providers to bid on contracts with uniform rates of reimbursement based on the actual cost of the services provided; (2) reviewing rates and cost standards every two years to reflect changes in reasonable costs due to inflation or changes in the consumer price index for urban consumers; (3) creating an appeal process for providers if rates do not reflect the actual costs of services; and (4) when establishing rates, require the following factors to be considered: (A) The reasonable cost to providers of any existing or new mandate by the state, (B) changes in the reasonable costs of goods and services, and (C) geographic differences in wages, benefits and housing and real estate costs in each metropolitan area and in any municipality within such area if costs within such municipality are substantially higher than the average cost within such area as a whole.

Statement of Purpose:

To ensure all purchase of service contracts and Medicaid fee for services accounts reflect the actual cost of services provided in relation to reasonable increases in the consumer price index or inflation.