SB 131 heads to governor’s desk

Posted on: 5/21/21

As expected, SB 131, the MCO guardrail bill, passed off the House floor Thursday by a vote of 74 to 20. The bill had previously passed off the Senate floor on Wednesday by a vote of 39-8. For a detailed summary of the bill please click here. The bill now heads to governor’s desk where he has five days, excluding Sunday, to either sign or veto the measure. 

Another measure heard in the House on Thursday was SB 1045, which increases the SHOPP fee by .5% every year until it hits 4% on Jan. 1, 2024. It passed by a vote of 55-43 in the House and 39-8 in the Senate. Despite providing recommendations to the bill author, Sen. Roger Thompson, none made it into the bill. The following are key provisions of SB 1045:
• Adds authorization for directed payments under managed care.
• Changes the Hospital Advisory Committee to serve at the “pleasure of their appointing authority.” This committee is made up of members of OHA with one appointment by the governor, two by the president pro tempore of the Senate and two by the speaker of the House. 
• Fixes an additional SHOPP percentage of .5% for a total of 3% for the calendar year beginning Jan. 1, 2022, another .5% increase to 3.5% for CY beginning Jan. 1, 2023, and another .5% to a maximum of 4% for CY beginning Jan. 1, 2024. 
• Removes the current SHOPP sunset provision expiring in 2025.

While this is certainly not the outcome we had hoped for, SB 131 does put into place guardrails that other states have fought years for after moving to an MCO model. We will keep you apprised of the status of this bill and SB 1045 when they are either signed or vetoed by the governor. (Scott Tohlen)