Indicates Matter Stricken

Indicates New Matter

 

Committee Report

March 27, 2024

 

H. 5236

 

Introduced by Reps. Bannister and Herbkersman

 

S. Printed 03/27/24--H.

Read the first time March 06, 2024

 

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The committee on House Ways and Means

To whom was referred a Bill (H. 5236) to amend the South Carolina Code of Laws by amending Section 44-6-50, relating to responsibilities of the Department of Health and Human Services or a successor, etc., respectfully

Report:

That they have duly and carefully considered the same, and recommend that the same do pass:

 

GILDA COBB-HUNTER for Committee.

 

 

statement of estimated fiscal impact

Explanation of Fiscal Impact

State Expenditure

This bill permits DHHS, or a successor agency, to award contracts or procure Medicaid systems and services using NASPO agreements. These agreements are competitively solicited purchasing agreements that are developed and awarded through NASPO.

 

Currently, the procurement of Medicaid services and systems is completed through a competitive bid or RFP through the Division of Procurement Services at SFAA. This procurement process may take 18-24 months depending on the time required to complete key steps in the procurement process. NASPO agreements will provide DHHS with an additional channel through which to procure required services and systems. As NASPO agreements have already been vetted, negotiated, and awarded for certain Medicaid services, DHHS anticipates the time and effort it takes to acquire these systems and services will be significantly reduced.

 

DHHS estimates that the current steps necessary to develop and issue an RFP requires 3,300 work hours and 20.17 months in processing time resulting in $280,500 in costs. DHHS estimates that the steps necessary to award a contract through NASPO requires 1,340 work hours and 5.67 months in processing time resulting in $113,900 in costs. Therefore, DHHS anticipates that each contract processed through the NASPO award system will result in a savings of 1,960 work hours and 14.5 months in processing time. Therefore, DHHS anticipates this bill will result in a General Funds expenditure savings of approximately $83,300 and a Federal Funds expenditure savings of approximately $83,300 per contract completed through a NASPO agreement.

 

 

Frank A. Rainwater, Executive Director

Revenue and Fiscal Affairs Office

 

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A bill

 

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING SECTION 44-6-50, RELATING TO RESPONSIBILITIES OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES OR A SUCCESSOR AGENCY, SO AS TO MAKE CERTAIN CHANGES CONCERNING MEDICAID CLAIMS PROCESSING CONTRACTS.

 

Be it enacted by the General Assembly of the State of South Carolina:

 

SECTION 1.  Section 44-6-50(2) of the S.C. Code is amended to read:

 

    (2) Contract for operation of certified Medicaid management information claims processing system.  For the first year of its operation it shall contract for such system with the Department of Social Services. In reliance upon the prior notification published by the National Association of State Procurement Officials (NASPO) for any multi-state solicitation it issues, the Department of Health and Human Services or a successor agency is authorized to award contracts and procure Medicaid systems and services using competitively solicited NASPO ValuePoint Master Cooperative Purchasing Agreements.  Sections 11-35-1520(3) and 11-35-4810(4) are not applicable.

 

SECTION 2.  This act takes effect upon approval by the Governor.

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