Sec. K-1. PL 2003, c. 20, Pt. D, §§19 to 21 are amended to read:
Sec. D-19. Calculation and transfer. Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings in Part B, section 1 for fiscal year 2003-04 that applies against each General Fund account for all departments and agencies from savings in the cost of health insurance from hospital rate adjustments and shall transfer the amounts by financial order upon the approval of the Governor. These transfers are considered adjustments to appropriations in fiscal years year 2003-04 and 2004-05. The State Budget Officer shall provide the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs a report of the transferred amounts no later than January 15, 2005.
Sec. D-20. Calculation and transfer. Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings in Part B, section 1 for fiscal year 2003-04 that applies against each Other Special Revenue Funds account for all departments and agencies from savings in the cost of health insurance from hospital rate adjustments and shall transfer the calculated amounts to the General Fund by financial order upon the approval of the Governor. These transfers are considered adjustments to allocations in fiscal years year 2003-04 and 2004-05, including allocations from the Fund for a Healthy Maine. The State Budget Officer shall provide the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs a report of the transferred amounts no later than January 15, 2005. The following Other Special Revenue Funds accounts are exempt from these calculations: the Public Reserved Lands Management Fund account and the Submerged Lands Fund account in the Department of Conservation and the Baxter State Park Authority account.
Sec. D-21. Calculation and transfer. Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings in Part B, section 1 for fiscal year 2003-04 that applies against each Highway Fund account for all departments and agencies from savings in the cost of health insurance from hospital rate adjustments and shall transfer the calculated amounts by financial order upon the approval of the Governor. These transfers are considered adjustments to allocations in fiscal years year 2003-04 and 2004-05. The State Budget Officer shall provide the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs a report of the transferred amounts no later than January 15, 2005.
Sec. K-2. PL 2003, c. 20, Pt. FFF, §1, sub-§1 is amended to read:
1. The Commissioner of Administrative and Financial Services, referred to in this section as "the commissioner," and any insurance company or 3rd-party administrator, referred to in this section as "the carrier," insuring or administering the state employee health plan, referred to in this section as "the plan," shall jointly negotiate agreements with hospitals participating in the carrier's provider network to reduce the expense incurred by the plan in state fiscal year 2003-04 by the amount of $18,020,851 and in state fiscal year 2004-05 by the amount of $19,728,208. In undertaking such negotiations the carrier must be deemed at all times to be the agent of the State. The commissioner and the carrier acting at the direction of the commissioner may offer or demand such terms and conditions as the commissioner considers to be in the best interest of the State to reduce the expense of the state employee health plan, including, but not limited to, offering or demanding reductions in standard hospital reimbursement rates, rebates and refunds and uniform terms relating to such reductions, rebates or refunds. The commissioner may not affect or seek to affect amounts paid to hospitals relating to any other customer of the carrier.
Sec. K-3. PL 2003, c. 451, Pt. Z, §1, sub-§1 is amended to read:
1. The Chancellor of the University of Maine System, referred to in this section as "the chancellor," and any insurance company or 3rd-party administrator acting at the direction of the State, referred to in this section as "the carrier," insuring or administering the University of Maine System health plan for employees and retirees, referred to in this section as "the plan," shall negotiate agreements with hospitals participating in the carrier's provider network to reduce the expense incurred by the plan in state fiscal year 2003-04 by the amount of $2,250,000 and in state fiscal year 2004-05 by the amount of $2,250,000. It is not the intent of the Legislature to require negotiations to reduce such expenses beyond state fiscal year 2005 2004. In undertaking such negotiations, the carrier is deemed at all times to be the agent of the State of Maine and the University of Maine System. The chancellor and the carrier, acting at the direction of the State, may offer or demand such terms and conditions as the chancellor considers to be in the best interest of the university to reduce the expense of the plan, including, but not limited to, offering or demanding reductions in standard hospital reimbursement rates, rebates and refunds and uniform terms relating to such reductions, rebates or refunds. The chancellor may not affect or seek to affect amounts paid to hospitals relating to any other customer of the carrier. The hospital discount rate resulting from this specific arrangement is not intended to affect the underlying premium rates for any purpose. This pooling of funds by the State is not intended to affect plan cost recoveries, plan cost structures or the university's ability to negotiate with carriers regarding the plan.
Sec. K-4. Transfer of funds; ending payment equity project. Notwithstanding any other provision of law, the State Controller shall transfer $4,818,560 in fiscal year 2004-05 from the unappropriated surplus of the General Fund to the unallocated surplus of the Highway Fund as a result of ending the payment equity project.
Sec. K-5. Appropriations and allocations. The following appropriations and allocations are made.
ADMINISTRATIVE AND FINANCIAL SERVICES, DEPARTMENT OF
Departments and Agencies - Statewide 0016
Initiative: Appropriates and allocates funds to offset the deappropriation and deallocation made in Public Law 2003, chapter 20, Part B regarding savings to the State for the cost of health insurance through increasing MaineCare rates for hospital inpatient services to the upper payment limit.
General Fund 2003-04 2004-05
Personal Services $0 $11,549,943
__________ __________
General Fund Total $0 $11,549,943
Other Special Revenue Funds 2003-04 2004-05
Personal Services $0 $3,359,705
__________ __________
Other Special Revenue
Funds Total $0 $3,359,705
ADMINISTRATIVE AND FINANCIAL SERVICES,
DEPARTMENT OF
DEPARTMENT TOTALS 2003-04 2004-05
GENERAL FUND $0 $11,549,943
OTHER SPECIAL REVENUE
FUNDS 0 3,359,705
__________ __________
DEPARTMENT TOTAL -
ALL FUNDS $0 $14,909,648
UNIVERSITY OF MAINE SYSTEM, BOARD OF
TRUSTEES OF THE
Educational and General Activities - UMS 0031
Initiative: Appropriates funds to offset the deappropriation made in Public Law 2003, chapter 451, Part C regarding savings to the University of Maine System for the cost of health insurance through increasing MaineCare rates for hospital inpatient services to the upper payment limit.
General Fund 2003-04 2004-05
All Other $0 $2,250,000
__________ __________
General Fund Total $0 $2,250,000
UNIVERSITY OF MAINE SYSTEM, BOARD OF
TRUSTEES OF THE
DEPARTMENT TOTALS 2003-04 2004-05
GENERAL FUND $0 $2,250,000
__________ __________
DEPARTMENT TOTAL -
ALL FUNDS $0 $2,250,000
SECTION TOTALS 2003-04 2004-05
GENERAL FUND $0 $13,799,943
OTHER SPECIAL REVENUE
FUNDS 0 3,359,705
__________ __________
SECTION TOTAL -
ALL FUNDS $0 $17,159,648
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