2000 Session

Budget Amendments - HB30 (Member Request)

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Chief Patron: Hall
Increase Nursing Home Capital Rates

Item 319 #48h

Item 319 #48h

First Year - FY2001 Second Year - FY2002
Health And Human Resources
Medical Assistance Services, Department of FY2001 $3,800,000 FY2002 $3,800,000 GF
FY2001 $4,100,000 FY2002 $4,100,000 NGF

Page 244, line 45, strike "$2,849,830,824" and insert "$2,857,730,824".
Page 244, line 45, strike "$2,896,793,218" and insert "$2,904,693,218".
Page 250, after line 8, insert:
"X.  Beginning July 1, 2000, the Department of Medical Assistance Services shall increase reimbursement rates in the current nursing facility payment system and modify the respective methodologies in order to effect the following changes in capital cost reimbursement:  (i) payment of nursing facility capital related costs under a Fair Rental Value (FRV) methodology that is inclusive of costs related to land, buildings and fixed equipment, major movable equipment, and any other capital related item, with no separate payment for depreciation or interest expense, lease costs, property taxes, insurance, or any other capital related costs; (ii) a prospective payment rate established as a per diem amount determined each year for each facility to be effective each July 1, regardless of the provider's fiscal year; (iii) a transition to FRV beginning July 1, 2000, and completed within three years."

(This amendment adds funds for increased Medicaid reimbursement for nursing facility capital costs based on a prospectively determined per diem using a Fair Rental Value methodology.)