As Reported by the House Finance and Appropriations Committee

130th General Assembly
Regular Session
2013-2014
Am. Sub. S. B. No. 206


Senators Burke, Cafaro 

Cosponsors: Senators Coley, LaRose, Tavares, Bacon, Balderson, Beagle, Eklund, Jones, Lehner, Manning, Peterson, Schaffer, Widener 

Representative Amstutz 



A BILL
To amend sections 191.02, 5162.01, 5162.13, 5162.131, 1
5162.132, 5162.20, 5163.01, 5163.06, 5163.09, 2
5163.0910, and 5164.911; to amend, for the purpose 3
of adopting a new section number as indicated in 4
parentheses, section 5163.0910 (5162.133); to 5
enact sections 103.41, 103.411, 103.412, 103.413, 6
103.414, 103.415, 191.08, 193.01, 193.02, 193.03, 7
193.04, 193.05, 193.06, 193.07, 5162.134, 5162.70, 8
5162.71, and 5164.94; and to repeal sections 9
101.39, 101.391, and 5163.099 of the Revised Code; 10
to amend Section 323.90 of Am. Sub. H.B. 59 of the 11
130th General Assembly; to require implementation 12
of certain Medicaid revisions, reform systems, and 13
program oversight; to provide for government 14
programs that provide public benefits to 15
prioritize employment goals; to create the Ohio 16
Healthier Buckeye Council and the Ohio Healthier 17
Buckeye Grant Program; and to make an 18
appropriation.19


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 191.02, 5162.01, 5162.13, 5162.131, 20
5162.132, 5162.20, 5163.01, 5163.06, 5163.09, 5163.0910, and 21
5164.911 be amended; section 5163.0910 (5162.133) be amended for 22
the purpose of adopting a new section number as indicated in 23
parentheses; and sections 103.41, 103.411, 103.412, 103.413, 24
103.414, 103.415, 191.08, 193.01, 193.02, 193.03, 193.04, 193.05, 25
193.06, 193.07, 5162.134, 5162.70, 5162.71, and 5164.94 of the 26
Revised Code be enacted to read as follows:27

       Sec. 103.41.  (A) As used in sections 103.41 to 103.415 of 28
the Revised Code:29

       (1) "JMOC" means the joint medicaid oversight committee 30
created under this section.31

       (2) "State and local government medicaid agency" means all of 32
the following:33

        (a) The department of medicaid;34

        (b) The office of health transformation;35

        (c) Each state agency and political subdivision with which 36
the department of medicaid contracts under section 5162.35 of the 37
Revised Code to have the state agency or political subdivision 38
administer one or more components of the medicaid program, or one 39
or more aspects of a component, under the department's 40
supervision;41

        (d) Each agency of a political subdivision that is 42
responsible for administering one or more components of the 43
medicaid program, or one or more aspects of a component, under the 44
supervision of the department or a state agency or political 45
subdivision described in division (A)(2)(c) of this section.46

       (B) There is hereby created the joint medicaid oversight 47
committee. JMOC shall consist of the following members:48

       (1) Five members of the senate appointed by the president of 49
the senate, three of whom are members of the majority party and 50
two of whom are members of the minority party;51

       (2) Five members of the house of representatives appointed by 52
the speaker of the house of representatives, three of whom are 53
members of the majority party and two of whom are members of the 54
minority party.55

       (C) The term of each JMOC member shall begin on the day of 56
appointment to JMOC and end on the last day that the member serves 57
in the house (in the case of a member appointed by the speaker) or 58
senate (in the case of a member appointed by the president) during 59
the general assembly for which the member is appointed to JMOC. 60
The president and speaker shall make the initial appointments not 61
later than fifteen days after the effective date of this section. 62
However, if this section takes effect before January 1, 2014, the 63
president and speaker shall make the initial appointments during 64
the period beginning January 1, 2014, and ending January 15, 2014. 65
The president and speaker shall make subsequent appointments not 66
later than fifteen days after the commencement of the first 67
regular session of each general assembly. JMOC members may be 68
reappointed. A vacancy on JMOC shall be filled in the same manner 69
as the original appointment.70

       (D) In odd-numbered years, the speaker shall designate one of 71
the majority members from the house as the JMOC chairperson and 72
the president shall designate one of the minority members from the 73
senate as the JMOC ranking minority member. In even-numbered 74
years, the president shall designate one of the majority members 75
from the senate as the JMOC chairperson and the speaker shall 76
designate one of the minority members from the house as the JMOC 77
ranking minority member.78

       (E) In appointing members from the minority, and in 79
designating ranking minority members, the president and speaker 80
shall consult with the minority leader of their respective houses.81

       (F) JMOC shall meet at the call of the JMOC chairperson. The 82
chairperson shall call JMOC to meet not less often than once each 83
calendar month, unless the chairperson and ranking minority member 84
agree that the chairperson should not call JMOC to meet for a 85
particular month.86

       (G) JMOC may employ professional, technical, and clerical 87
employees as are necessary for JMOC to be able successfully and 88
efficiently to perform its duties. All such employees are in the 89
unclassified service and serve at JMOC's pleasure. JMOC may 90
contract for the services of persons who are qualified by 91
education and experience to advise, consult with, or otherwise 92
assist JMOC in the performance of its duties.93

       (H) The JMOC chairperson, when authorized by JMOC and the 94
president and speaker, may issue subpoenas and subpoenas duces 95
tecum in aid of JMOC's performance of its duties. A subpoena may 96
require a witness in any part of the state to appear before JMOC 97
at a time and place designated in the subpoena to testify. A 98
subpoena duces tecum may require witnesses or other persons in any 99
part of the state to produce books, papers, records, and other 100
tangible evidence before JMOC at a time and place designated in 101
the subpoena duces tecum. A subpoena or subpoena duces tecum shall 102
be issued, served, and returned, and has consequences, as 103
specified in sections 101.41 to 101.45 of the Revised Code.104

       (I) The JMOC chairperson may administer oaths to witnesses 105
appearing before JMOC.106

       Sec. 103.411.  The JMOC chairperson may request that the 107
medicaid director appear before JMOC to provide information and 108
answer questions about the medicaid program. If so requested, the 109
medicaid director shall appear before JMOC at the time and place 110
specified in the request.111

       Sec. 103.412.  (A) JMOC shall oversee the medicaid program on 112
a continuing basis. As part of its oversight, JMOC shall do all of 113
the following:114

       (1) Review how the medicaid program relates to the public and 115
private provision of health care coverage in this state and the 116
United States;117

       (2) Review the reforms implemented under section 5162.70 of 118
the Revised Code and evaluate the reforms' successes in achieving 119
their objectives;120

       (3) Recommend policies and strategies to encourage both of 121
the following:122

       (a) Medicaid recipients being physically and mentally able to 123
join and stay in the workforce and ultimately becoming 124
self-sufficient;125

       (b) Less use of the medicaid program.126

       (4) Recommend, to the extent JMOC determines appropriate, 127
improvements in statutes and rules concerning the medicaid 128
program;129

       (5) Develop a plan of action for the future of the medicaid 130
program.131

       (B) JMOC may do all of the following:132

       (1) Plan, advertise, organize, and conduct forums, 133
conferences, and other meetings at which representatives of state 134
agencies and other individuals having expertise in the medicaid 135
program may participate to increase knowledge and understanding 136
of, and to develop and propose improvements in, the medicaid 137
program;138

       (2) Prepare and issue reports on the medicaid program;139

       (3) Solicit written comments on, and conduct public hearings 140
at which persons may offer verbal comments on, drafts of its 141
reports.142

       Sec. 103.413.  (A) JMOC may investigate state and local 143
government medicaid agencies. Subject to division (B) of this 144
section, all of the following apply to an investigation:145

       (1) JMOC, including its employees, may inspect the offices of 146
a state and local government medicaid agency as necessary for the 147
conduct of the investigation.148

       (2) No person shall deny JMOC or a JMOC employee access to 149
such an office when access is needed for such an inspection.150

       (3) Neither JMOC nor a JMOC employee is required to give 151
advance notice of, or to make prior arrangements before, such an 152
inspection.153

       (B) Neither JMOC nor a JMOC employee shall conduct an 154
inspection under this section unless the JMOC chairperson grants 155
prior approval for the inspection. The chairperson shall not grant 156
such approval unless JMOC, the president of the senate, and the 157
speaker of the house of representatives authorize the chairperson 158
to grant the approval. Each inspection shall be conducted during 159
the normal business hours of the office being inspected, unless 160
the chairperson determines that the inspection must be conducted 161
outside of normal business hours. The chairperson may make such a 162
determination only due to an emergency circumstance or other 163
justifiable cause that furthers JMOC's mission. If the chairperson 164
makes such a determination, the chairperson shall specify the 165
reason for the determination in the grant of prior approval for 166
the inspection.167

       Sec. 103.414.  Before the beginning of each fiscal biennium, 168
JMOC shall contract with an actuary to determine the projected 169
medical inflation rate for the upcoming fiscal biennium. The 170
contract shall require the actuary to make the determination using 171
the same types of classifications and sub-classifications of 172
medical care that the United States bureau of labor statistics 173
uses in determining the inflation rate for medical care in the 174
consumer price index. The contract also shall require the actuary 175
to provide JMOC a report with its determination at least one 176
hundred twenty days before the governor is required to submit a 177
state budget for the fiscal biennium to the general assembly under 178
section 107.03 of the Revised Code.179

       On receipt of the actuary's report, JMOC shall determine 180
whether it agrees with the actuary's projected medical inflation 181
rate. If JMOC disagrees with the actuary's projected medical 182
inflation rate, JMOC shall determine a different projected medical 183
inflation rate for the upcoming fiscal biennium.184

       The actuary and, if JMOC determines a different projected 185
medical inflation rate, JMOC shall determine the projected medical 186
inflation rate for the state unless that is not practicable in 187
which case the determination shall be made for the midwest region.188

        Regardless of whether it agrees with the actuary's projected 189
medical inflation rate or determines a different projected medical 190
inflation rate, JMOC shall complete a report regarding the 191
projected medical inflation rate. JMOC shall include a copy of the 192
actuary's report in JMOC's report. JMOC's report shall state 193
whether JMOC agrees with the actuary's projected medical inflation 194
rate and, if JMOC disagrees, the reason why JMOC disagrees and the 195
different medical inflation rate JMOC determined. At least ninety 196
days before the governor is required to submit a state budget for 197
the upcoming fiscal biennium to the general assembly under section 198
107.03 of the Revised Code, JMOC shall submit a copy of the report 199
to the general assembly in accordance with section 101.68 of the 200
Revised Code and to the governor and medicaid director.201

       Sec. 103.415.  JMOC may review bills and resolutions 202
regarding the medicaid program that are introduced in the general 203
assembly. JMOC may submit a report of its review of a bill or 204
resolution to the general assembly in accordance with section 205
101.68 of the Revised Code. The report may include JMOC's 206
determination regarding the bill's or resolution's desirability as 207
a matter of public policy.208

        JMOC's decision on whether and when to review a bill or 209
resolution has no effect on the general assembly's authority to 210
act on the bill or resolution. 211

       Sec. 191.02.  The executive director of the office of health 212
transformation, in consultation with all of the following 213
individuals, shall identify each government program administered 214
by a state agency that is to be considered a government program 215
providing public benefits for purposes of sectionsections 191.04 216
and 191.08 of the Revised Code:217

       (A) The director of administrative services;218

       (B) The director of aging;219

       (C) The director of development services;220

       (D) The director of developmental disabilities;221

       (E) The director of health;222

       (F) The director of job and family services;223

       (G) The director of medicaid director;224

       (H) The director of mental health and addiction services;225

       (I) The director of rehabilitation and correction;226

       (J) The director of veterans services;227

       (K) The director of youth services;228

       (L) The executive director of the opportunities for Ohioans 229
with disabilities agency;230

       (M) The administrator of workers' compensation;231

       (N) The superintendent of insurance;232

       (O) The superintendent of public instruction;233

       (P) The tax commissioner.234

       Sec. 191.08.  The executive director of the office of health 235
transformation shall adopt strategies that prioritize employment 236
as a goal for individuals participating in government programs 237
providing public benefits.238

       Sec. 193.01. As used in this chapter:239

       "Care coordination" means assisting an individual to access 240
available physical health, behavioral health, social, employment, 241
education, and housing services the individual needs.242

       "Care coordinator" means a person who provides care 243
coordination.244

       "Political subdivision" has the same meaning as in section 245
2744.01 of the Revised Code.246

       "Publicly funded assistance programs" include physical 247
health, behavioral health, social, employment, education, and 248
housing programs funded or provided by the state or a political 249
subdivision of the state. 250

       Sec. 193.02. (A) There is hereby created the Ohio healthier 251
buckeye council. The council shall consist of the following 252
members:253

       (1) The director of development services, or the director's 254
designee;255

       (2) The auditor of state, or the auditor's designee;256

       (3) Two members representing administrative departments 257
enumerated in section 121.02 of the Revised Code, appointed by the 258
governor;259

       (4) One member representing a law enforcement agency, 260
appointed by the governor;261

       (5) One member representing the interests of nongovernmental 262
economic development entities, appointed by the governor;263

       (6) Two members of the senate, one of whom shall be appointed 264
by the president of the senate and the other shall be appointed by 265
the minority leader of the senate;266

       (7) One member representing health care providers, appointed 267
by the president of the senate;268

       (8) One member representing the interests of business and 269
development, appointed by the president of the senate;270

       (9) Two members of the house of representatives, one of whom 271
shall be appointed by the speaker of the house of representatives 272
and the other shall be appointed by the minority leader of the 273
house of representatives;274

       (10) One member representing health care insurers, appointed 275
by the speaker of the house of representatives;276

       (11) One member representing faith-based organizations, 277
appointed by the speaker of the house of representatives;278

       (12) One member representing the judicial branch of 279
government, appointed by the chief justice of the supreme court.280

       (B) Initial appointments to the council shall be made not 281
later than March 31, 2014.282

       The members appointed under divisions (A)(4) and (5) of this 283
section shall serve an initial term of one year. The members 284
appointed under divisions (A)(7) and (8) of this section shall 285
serve an initial term of two years. The members appointed under 286
divisions (A)(10), (11), and (12) of this section shall serve an 287
initial term of three years. Thereafter, each member appointed 288
under those divisions shall serve a four-year term. Each member 289
appointed under division (A)(3) of this section shall serve a 290
four-year term. A member appointed under divisions (A)(6) and (9) 291
of this section shall serve a four-year term or during the 292
member's tenure in the general assembly, whichever period is 293
shorter. Members may be reappointed to the council.294

       Vacancies on the council shall be filled in the same manner 295
as the original appointments.296

       (C) At its first meeting, the council shall select a 297
chairperson from among its members. After the first meeting, the 298
council shall meet at the call of the chairperson or upon the 299
request of a majority of the council's members. A majority of the 300
council constitutes a quorum.301

       (D) The development services agency shall provide 302
administrative assistance to the council until June 30, 2015. 303
Starting July 1, 2015, the joint medicaid oversight committee 304
established in section 103.41 of the Revised Code shall provide 305
administrative assistance to the council. 306

       (E) Council members shall receive no compensation but shall 307
be reimbursed for actual and necessary expenses incurred in the 308
performance of council duties.309

       Sec. 193.03. The Ohio healthier buckeye council shall do all 310
of the following:311

       (A) Promote the establishment of county healthier buckeye 312
councils throughout this state through whatever means the council 313
determines to be most efficient;314

       (B) Develop and promote means by which the county councils 315
may reduce the reliance of individuals on publicly funded 316
assistance programs using both of the following:317

       (1) Programs that have been demonstrated to be effective and:318

       (a) Have low costs;319

       (b) Use volunteer workers;320

       (c) Use incentives to encourage designated behaviors; and321

       (d) Are led by peers.322

       (2) Identification and elimination of eligibility 323
requirements for publicly funded assistance programs that are 324
barriers to achieving greater financial independence for 325
participants in those programs.326

       (C) Establish eligibility criteria, application processes, 327
and maximum grant amounts for the Ohio healthier buckeye grant 328
program established in section 193.04 of the Revised Code and 329
award grants under the program;330

       (D) Collect and analyze the data submitted to the council 331
under section 193.07 of the Revised Code;332

       (E) Develop the best practices for the administration of 333
publicly funded assistance programs in the state;334

       (F) Issue the annual reports required under section 193.05 of 335
the Revised Code. 336

       Sec. 193.04. (A) There is hereby created the Ohio healthier 337
buckeye grant program to be administered by the Ohio healthier 338
buckeye council. The program shall provide grants to county 339
healthier buckeye councils for the following:340

       (1) To assist county councils with costs associated with 341
gathering data regarding enrollment and outcome information 342
related to publicly funded assistance programs;343

       (2) To provide funding to county councils to enable care 344
coordinators to seek relevant certification.345

       (B) Not later than June 30, 2014, the council shall establish 346
all of the following:347

       (1) The application processes, eligibility criteria, and 348
grant amounts to be awarded under the program;349

       (2) The form and manner to be used by county councils when 350
submitting enrollment and outcome data to the council;351

       (3) Eligible certification programs for which county council 352
care coordinators may receive a grant.353

       Sec. 193.05. Not later than January 31, 2015, and every year 354
thereafter, the Ohio healthier buckeye council shall submit a 355
report to the joint medicaid oversight committee established in 356
section 103.41 of the Revised Code. A copy of the report shall be 357
submitted to each county healthier buckeye council. The report 358
shall include the following:359

       (A) Information regarding the enrollment and outcome data 360
submitted by county healthier buckeye councils under section 361
193.07 of the Revised Code, including information comparing past 362
data, if available;363

       (B) Recommendations developed by the council regarding the 364
best practices for the administration of publicly funded 365
assistance programs. 366

       Sec. 193.06. Each board of county commissioners may adopt a 367
resolution to establish a county healthier buckeye council. The 368
board may invite any public or private agency or group that funds, 369
advocates, or provides care coordination services or operates 370
publicly funded assistance programs to individuals to become a 371
member of the county council. 372

       Sec. 193.07. A county healthier buckeye council shall do all 373
of the following:374

       (A) Promote care coordination among physical health, 375
behavioral health, social, employment, education, and housing 376
service providers within the county;377

       (B) Report to the Ohio healthier buckeye council enrollment 378
and outcome data related to publicly funded assistance programs 379
provided within the county;380

       (C) Seek care coordination certification for individuals 381
within the county.382

       Sec. 5162.01.  (A) As used in the Revised Code:383

       (1) "Medicaid" and "medicaid program" mean the program of 384
medical assistance established by Title XIX of the "Social 385
Security Act," 42 U.S.C. 1396 et seq., including any medical 386
assistance provided under the medicaid state plan or a federal 387
medicaid waiver granted by the United States secretary of health 388
and human services.389

       (2) "Medicare" and "medicare program" mean the federal health 390
insurance program established by Title XVIII of the "Social 391
Security Act," 42 U.S.C. 1395 et seq.392

       (B) As used in this chapter:393

       (1) "Dual eligible individual" has the same meaning as in 394
section 5160.01 of the Revised Code.395

       (2) "Exchange" has the same meaning as in 45 C.F.R. 155.20.396

       (3) "Federal financial participation" has the same meaning as 397
in section 5160.01 of the Revised Code.398

       (3)(4) "Federal poverty line" means the official poverty line 399
defined by the United States office of management and budget based 400
on the most recent data available from the United States bureau of 401
the census and revised by the United States secretary of health 402
and human services pursuant to the "Omnibus Budget Reconciliation 403
Act of 1981," section 673(2), 42 U.S.C. 9902(2).404

       (4)(5) "Healthy start component" means the component of the 405
medicaid program that covers pregnant women and children and is 406
identified in rules adopted under section 5162.02 of the Revised 407
Code as the healthy start component.408

       (5)(6) "Home and community-based services" means services 409
provided under a home and community-based services medicaid waiver 410
component.411

       (7) "Home and community-based services medicaid waiver 412
component" has the same meaning as in section 5166.01 of the 413
Revised Code.414

       (8) "ICF/IID" has the same meaning as in section 5124.01 of 415
the Revised Code.416

       (6)(9) "Medicaid managed care organization" has the same 417
meaning as in section 5167.01 of the Revised Code.418

       (7)(10) "Medicaid provider" has the same meaning as in 419
section 5164.01 of the Revised Code.420

       (8)(11) "Medicaid services" has the same meaning as in 421
section 5164.01 of the Revised Code.422

       (9)(12) "Nursing facility" hasand "nursing facility 423
services" have the same meaningmeanings as in section 5165.01 of 424
the Revised Code.425

       (10)(13) "Political subdivision" means a municipal 426
corporation, township, county, school district, or other body 427
corporate and politic responsible for governmental activities only 428
in a geographical area smaller than that of the state.429

       (11)(14) "Prescribed drug" has the same meaning as in section 430
5164.01 of the Revised Code.431

       (12)(15) "Provider agreement" has the same meaning as in 432
section 5164.01 of the Revised Code.433

       (13)(16) "Qualified medicaid school provider" means the board 434
of education of a city, local, or exempted village school 435
district, the governing authority of a community school 436
established under Chapter 3314. of the Revised Code, the state 437
school for the deaf, and the state school for the blind to which 438
both of the following apply:439

       (a) It holds a valid provider agreement.440

       (b) It meets all other conditions for participation in the 441
medicaid school component of the medicaid program established in 442
rules authorized by section 5162.364 of the Revised Code.443

       (14)(17) "State agency" means every organized body, office, 444
or agency, other than the department of medicaid, established by 445
the laws of the state for the exercise of any function of state 446
government.447

       (15)(18) "Vendor offset" means a reduction of a medicaid 448
payment to a medicaid provider to correct a previous, incorrect 449
medicaid payment to that provider.450

       Sec. 5162.13.  On or before the first day of January of each 451
year, the department of medicaid shall submit to the speaker and 452
minority leader of the house of representatives and the president 453
and minority leader of the senate, and shall make available to the 454
public,complete a report on the effectiveness of the medicaid 455
program in meeting the health care needs of low-income pregnant 456
women, infants, and children. The report shall include: the 457
estimated number of pregnant women, infants, and children eligible 458
for the program; the actual number of eligible persons enrolled in 459
the program; the number of prenatal, postpartum, and child health 460
visits; a report on birth outcomes, including a comparison of 461
low-birthweight births and infant mortality rates of medicaid 462
recipients with the general female child-bearing and infant 463
population in this state; and a comparison of the prenatal, 464
delivery, and child health costs of the program with such costs of 465
similar programs in other states, where available. The department 466
shall submit the report to the general assembly in accordance with 467
section 101.68 of the Revised Code and to the joint medicaid 468
oversight committee. The department also shall make the report 469
available to the public.470

       Sec. 5162.131.  Semiannually, the medicaid director shall 471
submit to the president and minority leader of the senate, speaker 472
and minority leader of the house of representatives, and the 473
chairpersons of the standing committees of the senate and house of 474
representatives with primary responsibility for legislation making 475
biennial appropriationscomplete a report on the establishment and 476
implementation of programs designed to control the increase of the 477
cost of the medicaid program, increase the efficiency of the 478
medicaid program, and promote better health outcomes. The director 479
shall submit the report to the general assembly in accordance with 480
section 101.68 of the Revised Code and to the joint medicaid 481
oversight committee. In each calendar year, one report shall be 482
submitted not later than the last day of June and the subsequent 483
report shall be submitted not later than the last day of December.484

       Sec. 5162.132.  Annually, the department of medicaid shall 485
prepare a report on the department's efforts to minimize fraud, 486
waste, and abuse in the medicaid program.487

        Each report shall be made available on the department's web 488
site. The department shall submit a copy of each report to the 489
governor, general assembly, and,joint medicaid oversight 490
committee. The copy to the general assembly shall be submitted in 491
accordance with section 101.68 of the Revised Code, the general 492
assembly. Copies of the report also shall be made available to the 493
public on request.494

       Sec. 5163.0910.        Sec. 5162.133.  Not less than once each year, the 495
medicaid director shall submit a report on the medicaid buy-in for 496
workers with disabilities program to the governor, speaker and 497
minority leader of the house of representatives, president and 498
minority leader of the senate, and chairpersons of the house and 499
senate committees to which the biennial operating budget bill is 500
referredgeneral assembly, and joint medicaid oversight committee. 501
The copy to the general assembly shall be submitted in accordance 502
with section 101.68 of the Revised Code. The report shall include 503
all of the following information:504

       (A) The number of individuals who participated in the 505
medicaid buy-in for workers with disabilities program;506

       (B) The cost of the program;507

       (C) The amount of revenue generated by premiums that 508
participants pay under section 5163.094 of the Revised Code;509

       (D) The average amount of earned income of participants' 510
families;511

       (E) The average amount of time participants have participated 512
in the program;513

       (F) The types of other health insurance participants have 514
been able to obtain.515

       Sec. 5162.134.  Not later than the first day of each July, 516
the medicaid director shall complete a report of the evaluation 517
conducted under section 5164.911 of the Revised Code regarding the 518
integrated care delivery system. The director shall provide a copy 519
of the report to the general assembly and joint medicaid oversight 520
committee. The copy to the general assembly shall be provided in 521
accordance with section 101.68 of the Revised Code. The director 522
also shall make the report available to the public.523

       Sec. 5162.20.  (A) The department of medicaid shall institute 524
cost-sharing requirements for the medicaid program. The 525
cost-sharing requirements shall include a copayment requirement 526
for at least dental services, vision services, nonemergency 527
emergency department services, and prescribed drugs. The 528
cost-sharing requirements also shall include requirements 529
regarding premiums, enrollment fees, deductions, and similar 530
chargesThe department shall not institute cost-sharing 531
requirements in a manner that disproportionately impacts the 532
ability of medicaid recipients with chronic illnesses to obtain 533
medically necessary medicaid services. 534

       (B)(1) No provider shall refuse to provide a service to a 535
medicaid recipient who is unable to pay a required copayment for 536
the service.537

        (2) Division (B)(1) of this section shall not be considered 538
to do either of the following with regard to a medicaid recipient 539
who is unable to pay a required copayment:540

       (a) Relieve the medicaid recipient from the obligation to pay 541
a copayment;542

        (b) Prohibit the provider from attempting to collect an 543
unpaid copayment.544

        (C) Except as provided in division (F) of this section, no 545
provider shall waive a medicaid recipient's obligation to pay the 546
provider a copayment.547

        (D) No provider or drug manufacturer, including the 548
manufacturer's representative, employee, independent contractor, 549
or agent, shall pay any copayment on behalf of a medicaid 550
recipient.551

        (E) If it is the routine business practice of a provider to 552
refuse service to any individual who owes an outstanding debt to 553
the provider, the provider may consider an unpaid copayment 554
imposed by the cost-sharing requirements as an outstanding debt 555
and may refuse service to a medicaid recipient who owes the 556
provider an outstanding debt. If the provider intends to refuse 557
service to a medicaid recipient who owes the provider an 558
outstanding debt, the provider shall notify the recipient of the 559
provider's intent to refuse service.560

       (F) In the case of a provider that is a hospital, the 561
cost-sharing program shall permit the hospital to take action to 562
collect a copayment by providing, at the time services are 563
rendered to a medicaid recipient, notice that a copayment may be 564
owed. If the hospital provides the notice and chooses not to take 565
any further action to pursue collection of the copayment, the 566
prohibition against waiving copayments specified in division (C) 567
of this section does not apply.568

       (G) The department of medicaid may collaborate with a state 569
agency that is administering, pursuant to a contract entered into 570
under section 5162.35 of the Revised Code, one or more components, 571
or one or more aspects of a component, of the medicaid program as 572
necessary for the state agency to apply the cost-sharing 573
requirements to the components or aspects of a component that the 574
state agency administers.575

       Sec. 5162.70. (A) As used in this section:576

       (1) "CPI" means the consumer price index for all urban 577
consumers as published by the United States bureau of labor 578
statistics. 579

       (2) "CPI medical inflation rate" means the inflation rate for 580
medical care, or the successor term for medical care, for the 581
midwest region as specified in the CPI.582

       (3) "JMOC projected medical inflation rate" means the 583
following:584

        (a) The projected medical inflation rate for a fiscal 585
biennium determined by the actuary with which the joint medicaid 586
oversight committee contracts under section 103.414 of the Revised 587
Code if the committee agrees with the actuary's projected medical 588
inflation rate for that fiscal biennium;589

        (b) The different projected medical inflation rate for a 590
fiscal biennium determined by the joint medicaid oversight 591
committee under section 103.414 of the Revised Code if the 592
committee disagrees with the projected medical inflation rate 593
determined for that fiscal biennium by the actuary with which the 594
committee contracts under that section.595

        (4) "Successor term" means a term that the United States 596
bureau of labor statistics uses in place of another term in 597
revisions to the CPI.598

       (B) The medicaid director shall implement reforms to the 599
medicaid program that do all of the following:600

       (1) Limit the growth in the per recipient per month cost of 601
the medicaid program, as determined on an aggregate basis for all 602
eligibility groups, for a fiscal biennium to not more than the 603
lesser of the following:604

       (a) The average annual increase in the CPI medical inflation 605
rate for the most recent three-year period for which the necessary 606
data is available as of the first day of the fiscal biennium, 607
weighted by the most recent year of the three years;608

       (b) The JMOC projected medical inflation rate for the fiscal 609
biennium.610

       (2) Achieve the limit in the growth of the per recipient per 611
month cost of the medicaid program under division (B)(1) of this 612
section by doing all of the following:613

       (a) Improving the physical and mental health of medicaid 614
recipients;615

       (b) Providing for medicaid recipients to receive medicaid 616
services in the most cost-effective and sustainable manner;617

       (c) Removing barriers that impede medicaid recipients' 618
ability to transfer to lower cost, and more appropriate, medicaid 619
services, including home and community-based services;620

       (d) Establishing medicaid payment rates that encourage value 621
over volume and result in medicaid services being provided in the 622
most efficient and effective manner possible;623

       (e) Implementing fraud and abuse prevention and cost 624
avoidance mechanisms to the fullest extent possible;625

       (f) Integrating in the care management system established 626
under section 5167.03 of the Revised Code the delivery of physical 627
health, behavioral health, nursing facility, and home and 628
community-based services covered by medicaid.629

       (3) Reduce the prevalence of comorbid health conditions 630
among, and the mortality rates of, medicaid recipients;631

       (4) Reduce infant mortality rates among medicaid recipients.632

       (C) The medicaid director shall implement the reforms under 633
this section in accordance with evidence-based strategies that 634
include measurable goals.635

       (D) The reforms implemented under this section shall, without 636
making the medicaid program's eligibility requirements more 637
restrictive, reduce the relative number of individuals enrolled in 638
the medicaid program who have the greatest potential to obtain the 639
income and resources that would enable them to cease enrollment in 640
medicaid and instead obtain health care coverage through 641
employer-sponsored health insurance or an exchange.642

       Sec. 5162.71.  The medicaid director shall implement within 643
the medicaid program systems that do both of the following:644

       (A) Improve the health of medicaid recipients through the use 645
of population health measures;646

       (B) Reduce health disparities, including, but not limited to, 647
those within racial and ethnic populations.648

       Sec. 5163.01. As used in this chapter:649

       "Caretaker relative" has the same meaning as in 42 C.F.R. 650
435.4 as that regulation is amended effective January 1, 2014.651

       "Children's hospital" has the same meaning as in section 652
2151.86 of the Revised Code.653

       "Federal financial participation" has the same meaning as in 654
section 5160.01 of the Revised Code.655

       "Federally qualified health center" has the same meaning as 656
in the "Social Security Act," section 1905(l)(2)(B), 42 U.S.C. 657
1396d(l)(2)(B).658

       "Federally qualified health center look-alike" has the same 659
meaning as in section 3701.047 of the Revised Code.660

       "Federal poverty line" has the same meaning as in section 661
5162.01 of the Revised Code.662

       "Healthy start component" has the same meaning as in section 663
5162.01 of the Revised Code.664

       "Home and community-based services medicaid waiver component" 665
has the same meaning as in section 5166.01 of the Revised Code.666

       "Intermediate care facility for individuals with intellectual 667
disabilities" and "ICF/IID" have the same meanings as in section 668
5124.01 of the Revised Code.669

       "Mandatory eligibility groups" means the groups of 670
individuals that must be covered by the medicaid state plan as a 671
condition of the state receiving federal financial participation 672
for the medicaid program.673

       "Medicaid buy-in for workers with disabilities program" means 674
the component of the medicaid program established under sections 675
5163.09 to 5163.09105163.098 of the Revised Code.676

       "Medicaid services" has the same meaning as in section 677
5164.01 of the Revised Code.678

       "Medicaid waiver component" has the same meaning as in 679
section 5166.01 of the Revised Code.680

       "Nursing facility" and "nursing facility services" have the 681
same meanings as in section 5165.01 of the Revised Code.682

       "Optional eligibility groups" means the groups of individuals 683
who may be covered by the medicaid state plan or a federal 684
medicaid waiver and for whom the medicaid program receives federal 685
financial participation.686

       "Other medicaid-funded long-term care services" has the 687
meaning specified in rules adopted under section 5163.02 of the 688
Revised Code.689

       "Supplemental security income program" means the program 690
established by Title XVI of the "Social Security Act," 42 U.S.C. 691
1381 et seq.692

       Sec. 5163.06. The medicaid program shall cover all of the 693
following optional eligibility groups:694

       (A) The group consisting of children placed with adoptive 695
parents who are specified in the "Social Security Act," section 696
1902(a)(10)(A)(ii)(VIII), 42 U.S.C. 1396a(a)(10)(A)(ii)(VIII);697

       (B) Subject to section 5163.061 of the Revised Code, the 698
group consisting of women during pregnancy and the sixty-day 699
period beginning on the last day of the pregnancy, infants, and 700
children who are specified in the "Social Security Act," section 701
1902(a)(10)(A)(ii)(IX), 42 U.S.C. 1396a(a)(10)(A)(ii)(IX);702

       (C) Subject to sections 5163.09 to 5163.09105163.098 of the 703
Revised Code, the group consisting of employed individuals with 704
disabilities who are specified in the "Social Security Act," 705
section 1902(a)(10)(A)(ii)(XV), 42 U.S.C. 1396a(a)(10)(A)(ii)(XV);706

       (D) Subject to sections 5163.09 to 5163.09105163.098 of the 707
Revised Code, the group consisting of employed individuals with 708
medically improved disabilities who are specified in the "Social 709
Security Act," section 1902(a)(10)(A)(ii)(XVI), 42 U.S.C. 710
1396a(a)(10)(A)(ii)(XVI);711

       (E) The group consisting of independent foster care 712
adolescents who are specified in the "Social Security Act," 713
section 1902(a)(10)(A)(ii)(XVII), 42 U.S.C. 714
1396a(a)(10)(A)(ii)(XVII);715

       (F) The group consisting of women in need of treatment for 716
breast or cervical cancer who are specified in the "Social 717
Security Act," section 1902(a)(10)(A)(ii)(XVIII), 42 U.S.C. 718
1396a(a)(10)(A)(ii)(XVIII);719

       (G) The group consisting of nonpregnant individuals who may 720
receive family planning services and supplies and are specified in 721
the "Social Security Act," section 1902(a)(10)(A)(ii)(XXI), 42 722
U.S.C. 1396a(a)(10)(A)(ii)(XXI).723

       Sec. 5163.09.  (A) As used in sections 5163.09 to 5163.0910724
5163.098 of the Revised Code:725

       "Applicant" means an individual who applies to participate in 726
the medicaid buy-in for workers with disabilities program.727

       "Earned income" has the meaning established by rules 728
authorized by section 5163.098 of the Revised Code.729

       "Employed individual with a medically improved disability" 730
has the same meaning as in the "Social Security Act," section 731
1905(v), 42 U.S.C. 1396d(v).732

       "Family" means an applicant or participant and the spouse and 733
dependent children of the applicant or participant. If an 734
applicant or participant is under eighteen years of age, "family" 735
also means the parents of the applicant or participant.736

       "Health insurance" has the meaning established by rules 737
authorized by section 5163.098 of the Revised Code.738

       "Income" means earned income and unearned income.739

       "Participant" means an individual who has been determined 740
eligible for the medicaid buy-in for workers with disabilities 741
program and is participating in the program.742

       "Resources" has the meaning established by rules authorized 743
by section 5163.098 of the Revised Code.744

       "Spouse" has the meaning established inby rules authorized 745
by section 5163.098 of the Revised Code.746

       "Unearned income" has the meaning established by rules 747
authorized by section 5163.098 of the Revised Code.748

       (B) The medicaid program's coverage of the optional 749
eligibility groups specified in the "Social Security Act," section 750
1902(a)(10)(A)(ii)(XV) and (XVI), 42 U.S.C. 751
1396a(a)(10)(A)(ii)(XV) and (XVI) shall be known as the medicaid 752
buy-in for workers with disabilities program.753

       Sec. 5164.911. (A) If the medicaid director implements the 754
integrated care delivery system and except as provided in division 755
(D)(C) of this section, the director shall annually evaluate all 756
of the following:757

        (1) The health outcomes of ICDS participants;758

        (2) How changes to the administration of the ICDS affect all 759
of the following:760

        (a) Claims processing;761

        (b) The appeals process;762

        (c) The number of reassessments requested; 763

       (d) Prior authorization requests for services. 764

       (3) The provider panel selection process used by medicaid 765
managed care organizations participating in the ICDS. 766

       (B) When conducting an evaluation under division (A) of this 767
section, the director shall do all of the following: 768

       (1) For the purpose of division (A)(1) of this section, do 769
both of the following:770

        (a) Compare the health outcomes of ICDS participants to the 771
health outcomes of individuals who are not ICDS participants;772

        (b) Use both of the following:773

       (i) A control group consisting of ICDS participants who 774
receive health care services from providers not participating in 775
ICDS;776

        (ii) A control group consisting of ICDS participants who 777
receive health care services from alternative providers that are 778
not part of a participating medicaid managed care organization's 779
provider panel but provide health care services in the geographic 780
service area in which ICDS participants receive health care 781
services.782

        (2) For the purpose of division (A)(2) of this section, do 783
all of the following:784

        (a) To the extent the data is available, use data from all of 785
the following: 786

       (i) The fee-for-service component of the medicaid program;787

        (ii) Medicaid managed care organizations;788

        (iii) Managed care organizations participating in the 789
medicare advantage program established under Part C of Title XVIII 790
of the "Social Security Act," 42 U.S.C. 1395w-21 et seq.791

        (b) Identify all of the following: 792

       (i) Changes in the amount of time it takes to process claims 793
and the number of claims denied and the reasons for the changes;794

        (ii) The impact that changes to the administration of the 795
ICDS had on the appeals process and number of reassessments 796
requested; 797

       (iii) The number of prior authorization denials that were 798
overturned and the reasons for the overturned denials. 799

       (3) Require medicaid managed care organizations participating 800
in the ICDS to submit to the director any data the director needs 801
for the evaluation.802

        (C) Not later than the first day of each July, the director 803
shall complete a report of the evaluation conducted under this 804
section. The director shall provide a copy of the report to the 805
general assembly in accordance with section 101.68 of the Revised 806
Code and make the report available to the public.807

       (D) The director is not required to conduct an evaluation 808
under this section for a year if the same evaluation is conducted 809
for that year by an organization under contract with the United 810
States department of health and human services.811

       Sec. 5164.94.  The medicaid director shall implement within 812
the medicaid program a system that encourages medicaid providers 813
to provide medicaid services to medicaid recipients in culturally 814
and linguistically appropriate manners.815

       Section 2.  That existing sections 191.02, 5162.01, 5162.13, 816
5162.131, 5162.132, 5162.20, 5163.01, 5163.06, 5163.09, 5163.0910, 817
and 5164.911 of the Revised Code are hereby repealed.818

       Section 3. That sections 101.39, 101.391, and 5163.099 of the 819
Revised Code are hereby repealed.820

       Section 4.  That Section 323.90 of Am. Sub. H.B. 59 of the 821
130th General Assembly be amended to read as follows:822

       Sec. 323.90.  JOINT LEGISLATIVEMEDICAID OVERSIGHT COMMITTEE 823
FOR UNIFIED LONG-TERM SERVICES AND SUPPORTSSTUDY824

       (A) The Joint Legislative Committee for Unified Long-Term 825
Services and Supports created under section 309.30.73 of Am. Sub. 826
H.B. 153 of the 129th General Assembly, as subsequently amended, 827
shall continue to exist during fiscal year 2014 and fiscal year 828
2015. The Committee shall consist of the following members:829

       (1) Two members of the House of Representatives from the 830
majority party, appointed by the Speaker of the House of 831
Representatives;832

       (2) One member of the House of Representatives from the 833
minority party, appointed by the Speaker of the House of 834
Representatives;835

       (3) Two members of the Senate from the majority party, 836
appointed by the President of the Senate;837

       (4) One member of the Senate from the minority party, 838
appointed by the President of the Senate.839

       (B) The Speaker of the House of Representatives shall 840
designate one of the members of the Committee appointed under 841
division (A)(1) of this section to serve as co-chairperson of the 842
Committee. The President of the Senate shall designate one of the 843
members of the Committee appointed under division (A)(3) of this 844
section to serve as the other co-chairperson of the Committee. The 845
Committee shall meet at the call of the co-chairpersons. The 846
co-chairpersons may request assistance for the Committee from the 847
Legislative Service Commission.848

       (C) The Joint Medicaid Oversight Committee may examine the 849
following issues:850

       (1) The implementation of the dual eligible integrated care 851
demonstration project authorized by section 5164.91 of the Revised 852
Code;853

       (2) The implementation of a unified long-term services and 854
support Medicaid waiver component under section 5166.14 of the 855
Revised Code;856

       (3) Providing consumers choices regarding a continuum of 857
services that meet their health-care needs, promote autonomy and 858
independence, and improve quality of life;859

       (4) Ensuring that long-term care services and supports are 860
delivered in a cost-effective and quality manner;861

       (5) Subjecting county homes, county nursing homes, and 862
district homes operated pursuant to Chapter 5155. of the Revised 863
Code to the franchise permit fee under sections 5168.40 to 5168.56 864
of the Revised Code;865

       (6) Other issues of interest to the committee.866

       (D)(B) The co-chairpersons of the Committee chairperson shall 867
provide for the Medicaid Director to testify before the Committee 868
at least quarterly regarding the issues that the Committee 869
examines.870

       Section 5.  That existing Section 323.90 of Am. Sub. H.B. 59 871
of the 130th General Assembly is hereby repealed.872

       Section 6. The Joint Medicaid Oversight Committee shall 873
prepare a report with recommendations for legislation regarding 874
Medicaid payment rates for Medicaid services. The goal of the 875
recommendations shall be to provide the Medicaid Director 876
statutory authority to implement innovative methodologies for 877
setting Medicaid payment rates that limit the growth in Medicaid 878
costs and protect, and establish guiding principles for, Medicaid 879
providers and recipients. The Medicaid Director shall assist the 880
Committee with the report. The Committee shall submit the report 881
to the General Assembly in accordance with section 101.68 of the 882
Revised Code not later than January 1, 2015.883

       Section 7. The General Assembly encourages the Department of 884
Medicaid to achieve greater cost savings for the Medicaid program 885
than required by section 5162.70 of the Revised Code. It is the 886
intent of the General Assembly that any amounts saved under that 887
section not be expended for any other purpose.888

       Section 8. Nothing in this act shall be construed as the 889
General Assembly endorsing, validating, or otherwise approving the 890
Medicaid program's coverage of the group described in the "Social 891
Security Act," section 1902(a)(10)(A)(i)(VIII), 42 U.S.C. 892
1396a(a)(10)(A)(i)(VIII).893

       Section 9.  All items in this section are hereby appropriated 894
as designated out of any moneys in the state treasury to the 895
credit of the designated fund. For all appropriations made in this 896
act, those in the first column are for fiscal year 2014 and those 897
in the second column are for fiscal year 2015. The appropriations 898
made in this act are in addition to any other appropriations made 899
for the FY 2014-FY 2015 biennium.900

Appropriations

JMO JOINT MEDICAID OVERSIGHT COMMITTEE
901

General Revenue Fund902

GRF 048321 Operating Expenses $ 350,000 $ 500,000 903
TOTAL GRF General Revenue Fund $ 350,000 $ 500,000 904
TOTAL ALL BUDGET FUND GROUPS $ 350,000 $ 500,000 905

       OPERATING EXPENSES906

       The foregoing appropriation item 048321, Operating Expenses, 907
shall be used to support expenses related to the Joint Medicaid 908
Oversight Committee created by section 103.41 of the Revised Code.909

       Section 10. Within the limits set forth in this act, the 910
Director of Budget and Management shall establish accounts 911
indicating the source and amount of funds for each appropriation 912
made in this act, and shall determine the form and manner in which 913
appropriation accounts shall be maintained. Expenditures from 914
appropriations contained in this act shall be accounted for as 915
though made in the main operating appropriations act of the 130th 916
General Assembly.917

       The appropriations made in this act are subject to all 918
provisions of the main operating appropriations act of the 130th 919
General Assembly that are generally applicable to such 920
appropriations.921