1. (a) To implement the provisions of 42 U.S.C. 1396b regarding federal financial participation under Medicaid, and subject to legislative appropriations for that purpose, the department will make a state hospital proportionate share payment to, and may require specific services to be performed by, a hospital that qualifies under (1) of this subsection in order to ensure continued access to inpatient and outpatient hospital services or other health services, and in order to secure for the state in accordance with AS 47.07.040, the optimum federal participation for inpatient hospital services in the state's medical assistance program. The following procedures and requirements apply to a proportionate share payment under this subsection:

   1. (1) to qualify for a state hospital proportionate share payment under this subsection, a hospital must be

      1. (A) a state-owned or state-operated Medicaid provider of inpatient hospital services; and
      2. (B) located within the state;
   2. (2) the total amount available for distribution as state hospital proportionate share payments under this subsection will be established by the department each year, based on the department's projection of hospital expenditures and within the payment limits of 42 C.F.R. 447.271 - 447.272; subject to legislative appropriation, payment of the amount the department determines to be available for state hospital proportionate share payments will be apportioned among qualifying hospitals.
2. (b) In this section, "qualifying hospital" means a hospital that qualifies under (a)(1) of this section for a state hospital proportionate share payment.

(Eff. 2/1/2010, Register 193)

Authority: AS 47.05.010, AS 47.07.030, AS 47.07.040, AS 47.07.070