74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 322
 
                         House Bill 2411
 
Sponsored by Representative BUTLER (Presession filed.)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Creates Illegal Alien Stop-Loss Program for Small Oregon
Hospitals in Department of Human Services. Requires department to
adopt reimbursement procedures according to specified criteria.
  Allocates moneys to department from Administrative Services
Economic Development Fund to administer program.
 
                        A BILL FOR AN ACT
Relating to the Illegal Alien Stop-Loss Program for Small Oregon
  Hospitals; and limiting expenditures.
  Whereas illegal aliens play Oregon lottery games and generate
lottery proceeds; and
  Whereas small rural Oregon hospitals provide large amounts of
uncompensated care to illegal aliens; and
  Whereas some portion of lottery proceeds generated by illegal
aliens should be used to assist small rural hospitals to cover a
portion of the costs from providing uncompensated care to aliens;
now, therefore,
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + There is created within the Department of Human
Services an Illegal Alien Stop-Loss Program for Small Oregon
Hospitals to provide reimbursement for costs incurred by small
rural hospitals in serving uninsured aliens who are in the United
States without legal authorization. + }
  SECTION 2.  { + (1) The Department of Human Services shall
administer the Illegal Alien Stop-Loss Program for Small Oregon
Hospitals. The department shall, by rules adopted in accordance
with ORS chapter 183, establish procedures by which small rural
Oregon hospitals may be reimbursed for the cost of care provided
to illegal aliens that is not compensated through health
insurance or medical assistance. The department shall:
  (a) Require type A and type B hospitals to bear the first
$100,000 of costs per year from serving illegal aliens; and
  (b) Accept claims from type A and type B hospitals for amounts
that equal 50 percent of the costs per year in excess of $100,000
borne by such hospitals in treating illegal aliens.
  (2) From funds available to the department for purposes of this
section and section 1 of this 2007 Act, the department shall:
  (a) Pay to type A hospitals submitting claims under this
section a pro rata distribution, up to the full amount of all
claims;
 
  (b) Pay to type B hospitals submitting claims under this
section a pro rata distribution of the amount remaining after the
distribution of funds under paragraph (a) of this subsection, up
to the full amount of all claims; and
  (c) Pay any amounts remaining after the distribution of funds
under paragraph (b) of this subsection to all other Oregon
hospitals based upon each hospital's pro rata share of gross
unpaid annual billings.
  (3) As used in this section, 'type A hospital' and 'type B
hospital' mean rural hospitals as described in ORS 442.470
(5)(a)(A) and (B), respectively. + }
  SECTION 3.  { + (1) There is allocated to the Department of
Human Services from the Administrative Services Economic
Development Fund the amount identified in subsection (2) of this
section.
  (2) Notwithstanding any other law limiting expenditures, the
amount of $4 million is established for the biennium beginning
July 1, 2007, as the maximum limit for payment of expenses by the
department from the Administrative Services Economic Development
Fund for the Illegal Alien Stop-Loss Program for Small Oregon
Hospitals.
  (3) The allocation of moneys from the Administrative Services
Economic Development Fund under this section is subject to the
requirements in section 4, Article XV of the Oregon Constitution,
for deposit of specified amounts of the net proceeds from the
Oregon State Lottery into the Education Stability Fund and into
the Parks and Natural Resources Fund and shall be made only after
satisfaction or payment of:
  (a) Amounts allocated to Westside lottery bonds issued under
ORS 391.140 or to the reserves or any refunding related to the
Westside lottery bonds in accordance with the priority for
allocation and disbursement established by ORS 391.130;
  (b) All liens, pledges or other obligations relating to lottery
bonds or refunding lottery bonds that are due or payable during
the biennium beginning July 1, 2007; and
  (c) Amounts required by any other pledges of, or liens on, net
proceeds from the Oregon State Lottery. + }
  SECTION 4.  { + The Department of Human Services may not reduce
reimbursement paid to hospitals for services provided by the
hospitals through the medical assistance programs under ORS
chapter 414 by the amount of the payments under section 2 of this
2007 Act. + }
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