MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Appropriations

By: Representatives Nettles, Hudson

House Bill 308

AN ACT TO CREATE IN THE STATE TREASURY A TRUST FUND TO BE KNOWN AS THE MISSISSIPPI TOBACCO SETTLEMENT TRUST FUND; TO PROVIDE THAT PRINCIPAL OF THE TRUST FUND SHALL REMAIN INVIOLATE AND SHALL BE INVESTED; TO PROVIDE THAT THE INTEREST AND INCOME FROM THE INVESTMENT OF THE PRINCIPAL OF THE TRUST FUND MAY BE APPROPRIATED ONLY FOR THE PURPOSE OF FUNDING THE MEDICAID PROGRAM; TO AMEND SECTION 43-13-113, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) There is created in the State Treasury a trust fund to be known as the Mississippi Tobacco Settlement Trust Fund. Monies in the trust fund shall consist of all funds that have been paid or will be paid to the State of Mississippi from the tobacco industry as a result of:

(a) Settlement of the case of Mike Moore, Attorney General ex rel. State of Mississippi v. The American Tobacco Company et al. (Chancery Court of Jackson County, Mississippi, Cause No. 94-1429);

(b) Settlement of any case brought by another state against the tobacco industry; and

(c) Any legislation enacted by Congress to implement the national tobacco settlement agreement between the state attorneys general and the tobacco industry.

(2) The principal of the trust fund shall remain inviolate, and shall be invested in the same manner as the principal of the Education Improvement Trust Fund is invested under Sections 7-9-101 through 7-9-107. Monies in the trust fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest and income earned on amounts in the trust fund shall be deposited to the credit of the trust fund.

(3) The interest and income earned from the investment of the principal of the trust fund may be expended only upon appropriation of the Legislature and may be appropriated only for the purpose of funding the Medicaid program (Section 43-13-101 et seq.).

SECTION 2. Section 43-13-113, Mississippi Code of 1972, is amended as follows:

43-13-113. (1) The State Treasurer shall receive on behalf of the state, and * * * execute all instruments incidental thereto, federal and other funds to be used for financing the medical assistance plan or program adopted pursuant to this article, and to place all such funds in a special account to the credit of the Governor's Office -- Division of Medicaid, which * * * funds shall be expended by the division for the purposes and under the provisions of this article, and shall be paid out by the State Treasurer as funds appropriated to carry out the provisions of this article are paid out by him. In addition to the funds in the Governor's Office-Division of Medicaid special account, the Legislature may also appropriate funds from other special funds in the State Treasury for the support of the Medicaid program if so authorized by law, and such funds need not be placed in the special account.

The division shall issue all checks or electronic transfers for administrative expenses, and for medical assistance under the provisions of this article. All such checks or electronic transfers shall be drawn upon funds made available to the division by the State Fiscal Officer, upon requisition of the director. It is the purpose of this section to provide that the State Fiscal Officer shall transfer, in lump sums, amounts to the division for disbursement under the regulations which shall be made by the director with the approval of the Governor; * * * however, * * * the division, or its fiscal agent in behalf of the division, shall be authorized in maintaining separate accounts with a Mississippi bank to handle claim payments, refund recoveries and related Medicaid program financial transactions, to aggressively manage the float in these accounts while awaiting clearance of checks or electronic transfers and/or other disposition so as to accrue maximum interest advantage of the funds in the account, and to retain all earned interest on these funds to be applied to match federal funds for Medicaid program operations.

(2) Disbursement of funds to providers shall be made as follows:

(a) All providers must submit all claims to the Division of Medicaid's fiscal agent no later than twelve (12) months from the date of service.

(b) The Division of Medicaid's fiscal agent must pay ninety percent (90%) of all clean claims within thirty (30) days of the date of receipt.

(c) The Division of Medicaid's fiscal agent must pay ninety-nine percent (99%) of all clean claims within ninety (90) days of the date of receipt.

(d) The Division of Medicaid's fiscal agent must pay all other claims within twelve (12) months of the date of receipt.

(e) If a claim is neither paid nor denied for valid and proper reasons by the end of the time periods as specified above, the Division of Medicaid's fiscal agent must pay the provider interest on the claim at the rate of one and one-half percent (1-1/2%) per month on the amount of such claim until it is finally settled or adjudicated.

(3) The date of receipt is the date the fiscal agent receives the claim as indicated by its date stamp on the claim or, for those claims filed electronically, the date of receipt is the date of transmission.

(4) The date of payment is the date of the check or, for those claims paid by electronic funds transfer, the date of the transfer.

(5) The above specified time limitations do not apply in the following circumstances:

(a) Retroactive adjustments paid to providers reimbursed under a retrospective payment system;

(b) If a claim for payment under Medicare has been filed in a timely manner, the fiscal agent may pay a Medicaid claim relating to the same services within six (6) months after it, or the provider, receives notice of the disposition of the Medicare claim;

(c) Claims from providers under investigation for fraud or abuse; and

(d) The Division of Medicaid and/or its fiscal agent may make payments at any time in accordance with a court order, to carry out hearing decisions or corrective actions taken to resolve a dispute, or to extend the benefits of a hearing decision, corrective action, or court order to others in the same situation as those directly affected by it.

(6) If sufficient funds are appropriated therefor by the Legislature, the Division of Medicaid may contract with the Mississippi Dental Association, or an approved designee, to develop and operate a Donated Dental Services (DDS) program through which volunteer dentists will treat needy disabled, aged, and medically compromised individuals who are non-Medicaid eligible recipients.

SECTION 3. This act shall take effect and be in force from and after July 1, 1998.