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Department requests $190M related to hospital assessment after UPL methodology changes
Summary
Analysts and the Department of Health and Welfare told JFAC that changes to upper payment limit methodology tied to SB 1350 (2022) increased the hospital assessment the state must process. The department requested a $190 million supplemental (mix of dedicated hospital-assessment funds and federal dollars) and asked to make the change ongoing.
Department and legislative analysts told the Joint Finance-Appropriations Committee on Feb. 26 that changes to the method for calculating the upper payment limit (UPL) for hospitals and skilled nursing facilities have raised the assessment amount the state needs to record.
Analyst Alex Williamson said the supplemental request tied to the hospital assessment fund totals $190 million; of that, roughly $77 million is from dedicated assessment receipts and about $113 million would be federal funds drawn down as a…
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