Senator Owens, sponsor of SB 193, told the Human Services Standing Committee on Oct. 12 that the bill would tie Medicaid provider rate increases to state general fund growth and provide predictability for both providers and the state.

The measure would extend a growth-management approach already used for managed care organizations to additional Medicaid provider groups. “In any year in which the state sees general fund growth, we will provide a 2% rate increase,” a legislative fiscal staff member summarized for the committee, noting the model follows earlier 2013 legislation addressing managed‑care growth.

The nut of the bill is a standing rule to deliver modest rate increases in up years and to avoid automatic increases in down years. Sponsors said the approach is intended to reduce the “lurches” that occur when rate adjustments are granted irregularly — for example, large increases after long gaps — and to shift some growth risk to managed entities. The sponsor described the model as one that “manages the growth over time” by using a capitated structure so private-sector risk bears more of the variability.

Supporters cited the effect of the 2013 law for managed care organizations, which they said reduced Medicaid growth relative to general fund growth and produced savings statewide. A fiscal figure offered during discussion estimated a fiscal note on the bill at about $8 million; sponsors contrasted that with requests that have reached $25 million when providers petition after long intervals without increases.

Committee members adopted a second substitute of SB 193 and then moved to send the second substitute out of committee with a favorable recommendation. Committee discussion and the fiscal review were described as coordinated with the Social Services Appropriations Committee; the sponsor said a request-for-appropriation (RFA) was working its way through that committee so members would have additional budgetary detail.

No public commenters appeared in person on the bill during the committee’s hearing.

The committee placed two formal actions on the record: adoption of the second substitute to SB 193, and a favorable recommendation to pass the second substitute out of committee. The transcript records committee agreement without a roll-call vote; the tally was not specified in committee minutes.