SHOPP assessment, benefit to increase for 2013

Posted On: 12/19/2012

Hospitals required to pay an assessment to the state of Oklahoma under the Supplemental Hospital Offset Payment Program (SHOPP) will pay slightly more in 2013 than in 2012.

The Hospital Advisory Committee created by OHA’s SHOPP bill met last week with the Oklahoma Health Care Authority (OHCA), and approved an increase in the SHOPP assessment rate for 2013, to 2.60 percent of 2009 hospital net patient revenue. The assessment rate for 2012 was 2.50 percent.

With federal matching, this change will provide an increase of $11 million in net benefit to Oklahoma’s hospitals for 2013.

Hospitals subject to the SHOPP assessment must pay one-fourth of the 2013 annual assessment by Jan. 15, 2013. OHCA mailed assessment notices for 2013 to hospitals late last week.

SHOPP payments to critical access hospitals ensure that these hospitals receive 101 percent of the cost of covered Medicaid services. The balance of SHOPP’s supplemental payments to hospitals is distributed in proportion to Oklahoma Medicaid claims payments. SHOPP supplements for 2011 and 2012 were based on Medicaid claims payments made during the state fiscal year that ended June 30, 2011. SHOPP distributions in 2013 will be based on Medicaid claims paid during the state fiscal year that ended June 30, 2012.

Several Oklahoma hospitals experienced declines in Medicaid inpatient claims payments from decreased utilization in the 2012 state fiscal year. The declines resulted in some decreases in 2013 SHOPP supplemental payment allocations to these hospitals. (Rick Snyder)