in state diagnostic services proviso eliminated by SC House

The Senate version of the budget this year contain the following proviso:

33.32. (DHHS: In-state Medicaid Providers Lab Services)  Whenever possible, contracts with managed care plans participating in the Healthy Connections Choices program shall apply an in-state provider preference when contracting for laboratory services if the in-state provider is able to provide the requested service at the same or less cost as an out-of-state provider.

What this means is all of the Medicaid hmo’s are required to consider contracting with in-state when possible. Currently the two largest medicaid hmo’s send all of their lab work to a company in North Carolina. This proviso simple calls for a chance for South Carolina labs to participate. Unfortunately, the SC House budget amendment struck this proviso.