REPORT OF CONFERENCE COMMITTEE

H.B. No. 1617: Appropriation; Governors Office - Division of Medicaid.

SECTION 1. The following sum, or so much thereof as may be necessary, is hereby appropriated out of any money in the State General Fund not otherwise appropriated, to the Governor's Office - Division of Medicaid for the purpose of providing medical assistance under the Mississippi Medicaid Law and defraying the expenses of the administration of such law, as provided in Section 43-13-101 et seq., Mississippi Code of 1972, for the fiscal year beginning July 1, 1999, and ending June 30, 2000

$ 195,269,945.00.

None of the funds appropriated in Sections 1, 2, 3 or 4 shall be used to fund any capitated rate health care contract nor for services provided under a capitated rate health care plan outside of the ten (10) counties where capitated managed care presently exists.

SECTION 2. The following sum, or so much thereof as may be necessary, is hereby appropriated out of any money in the State Treasury to the credit of the Medical Care Fund created by Section 43-13-143, Mississippi Code of 1972, for the purpose of providing medical assistance under the Mississippi Medicaid Law for the fiscal year beginning July 1, 1999, and ending June 30, 2000

$ 236,419,670.00.

SECTION 3. The following sum, or so much thereof as may be necessary, is hereby appropriated out of any money in any special fund in the State Treasury to the credit of the Governor's Office - Division of Medicaid which is comprised of special source funds collected by or otherwise available to the commission, for the purpose of providing medical assistance under the Mississippi Medicaid Law and defraying the expenses of the administration of such law, for the fiscal year beginning July 1, 1999, and ending June 30, 2000 $ 1,749,497,875.00.

Prior period recovery of funds may be maintained and expended by the division when the recovery is received or finalized.

SECTION 4. The following sum, or so much thereof as may be necessary, is hereby appropriated out of any money in the State Treasury to the credit of the Health Care Expendable Fund, created under House Bill No. 519, 1999 Regular Session, for the purpose of defraying the expenses of the Governor's Office - Division of Medicaid for the fiscal year beginning July 1, 1999, and ending June 30, 2000 $ 27,830,000.00.

The above funds shall be allocated as follows:

CHIP Program at 200% level of poverty.....$7,500,000.00

Eyeglasses for adults.....................$1,700,000.00

Home and Community Waiver Program.........$4,795,000.00

Drug purchases up to 150% of the

poverty level...........................$9,500,000.00

Disabled worker buy-in to the Medicaid

program.................................$1,835,000.00

Dental fee increase.......................$2,200,000.00

Miscellaneous.............................$ 300,000.00

SECTION 5. Of the funds appropriated under the provisions of Sections 1, 2, 3 and 4, not more than the amounts set forth below shall be expended for the respective major objects or purposes of expenditure:

MAJOR OBJECTS OF EXPENDITURE:

Personal Services:

Salaries, Wages and Fringe Benefits $ 19,213,110.00

Travel and Subsistence 605,000.00

Contractual Services 56,264,000.00

Commodities 609,000.00

Capital Outlay:

Other Than Equipment 0.00

Equipment 3,224,000.00

Subsidies, Loans and Grants 2,129,102,380.00

Total $ 2,209,017,490.00

FUNDING:

General Funds $ 197,769,945.00

Special Funds 2,011,247,545.00

Total $ 2,209,017,490.00

AUTHORIZED POSITIONS:

Permanent: Full Time. . . . . . . . . 511

Part Time. . . . . . . . . 0

Time-Limited: Full Time. . . . . . . . . 0

Part Time. . . . . . . . . 0

From the funds provided in the budget category "Personal Services: Salaries, Wages and Fringe Benefits," funds may be expended for the following purposes, in compliance with the policies established by the State Personnel Board and any conditions placed on such expenditures:

(a) The components of the Variable Compensation Plan shall be maintained within the constraints of the funds appropriated herein.

(b) Funds are provided to adjust the Variable Compensation Plan, including realignment, to ensure that all full-time employees with at least six (6) months of continuous current service, as of June 30, 1999, receive an increase of One Thousand Five Hundred Dollars ($1,500.00). Funds are provided to adjust critical job classes up to an additional One Thousand Dollars ($1,000.00).

(c) If an employee is currently at or above the end salary for his or her job classification, then the increase shall be built into the employee's base salary. To be eligible for any increase authorized in this section, employees may not have a current performance rating below "meets expectations" as of the effective date of the increase. Employees who subsequently receive a performance rating of "meets expectations" or above during Fiscal Year 2000 shall receive the salary increase effective the date of the rating.

It is the agency's responsibility to make certain that funds required to be appropriated for "Personal Services" for Fiscal Year 2001 do not exceed Fiscal Year 2000 funds appropriated for that purpose unless programs or positions are added to the agency's budget by the Mississippi Legislature.

Any transfers or escalations shall be made in accordance with the terms, conditions and procedures established by law.

No general funds authorized to be expended herein shall be used to replace federal funds and/or other special funds which are being used for salaries authorized under the provisions of this act and which are withdrawn and no longer available.

It is the intent of the Legislature that the Health-Max Program be expanded statewide.

SECTION 6. In compliance with the "Mississippi Performance Budget and Strategic Planning Act of 1994," it is the intent of the Legislature that the funds provided herein shall be utilized in the most efficient and effective manner possible to achieve the intended mission of this agency. Based on the funding authorized, this agency shall make every effort to attain the targeted performance measures provided below:

FY00

Performance Measures Target

Administrative Services

Administration as a percent of total budget 3.91

Medical Services

Recipients (persons) 555,000

Recipients in managed care 210,000

Primary care physicians 5,200

A reporting of the degree to which the performance targets set above have been or are being achieved shall be provided in the agency's budget request submitted to the Joint Legislative Budget Committee for Fiscal Year 2001.

SECTION 7. Funds are provided in this act for the reallocation of the following positions not to exceed Five Hundred Fifty-three Thousand Eight Hundred Twenty-seven Dollars ($553,827.00):

24 Office Manager I to Secretary Principal

1 Nurse IV to Division Director I

1 Personnel Officer I to Personnel Officer II

2 Bureau Director I to Bureau Director II

2 Division Director II to Bureau Director II

5 Division Director II to Bureau Director I

3 Division Director II to Bureau Director, Deputy

1 Personnel Director, Mod Agency to Bureau Director I

2 Operations Management Analyst to Division Director I

In addition to the reallocation authorized above and the salary adjustments in Section 5, it is the intention of the Legislature that the 3 Bureau Director, Deputy shall be increased an additional fifteen percent (15%) of total salary.

SECTION 8. Of the funds provided herein, Eleven Million Four Hundred Thousand Two Hundred Dollars ($11,400,200.00) is provided to match federal funds for the State Child Health Insurance Program (SCHIP).

SECTION 9. None of the funds appropriated herein shall be expended until the Executive Director of the Division of Medicaid submits a waiver request to the Federal Health Care Finance Authority for an Assisted Living Program.

SECTION 10. The money herein appropriated shall be paid by the State Treasurer out of any money in the State Treasury to the credit of the proper fund or funds as set forth in this act, upon warrants issued by the State Fiscal Officer; and the State Fiscal Officer shall issue his warrants upon requisitions signed by the proper person, officer or officers, in the manner provided by law.

SECTION 11. This act shall take effect and be in force from and after July 1, 1999.