2001 Session

Budget Amendments - HB1600 (Member Request)

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Chief Patron: Hall
Nursing Home Reimbursment-Capital

Item 319 #19h

Item 319 #19h

First Year - FY2001 Second Year - FY2002
Health And Human Resources
Medical Assistance Services, Department of FY2001 $0 FY2002 $6,390,000 GF
FY2001 $0 FY2002 $6,810,000 NGF

Page 307, line 50, strike "$3,069,053,201" and insert "$3,082,253,201".
Page 320, after line 4, insert:
"XX. Beginning July 1, 2001, the Department of Medical Assistance Services (DMAS) shall increase the 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:
1. Effective for dates of service beginning July 1, 2001, DMAS shall pay nursing facility capital related costs under a Fair Rental Value (FRV) methodology currently under development by DMAS.  The payment under this methodology shall be payment for the capital-related cost of depreciation, financing costs, interest expense and lease/rent costs.  Property taxes and insurance shall continue as pass-through costs.  This payment is considered to cover costs related to land, buildings and fixed equipment, major movable equipment, and any other capital-related items.  This shall be the case regardless of whether the property is owned or leased by the operator.
2. The FRV payment rate shall be a per diem rate determined for each nursing facility at the beginning of their cost-reporting year starting on or after July 1, 2001.
3. This methodlogy shall not apply to hospital-based nursing facilities which shall continue under the current methodology."

(This amendment provides additional funding and language to increase nursing home Medicaid payments for reimbursement of capital costs and complete the transition to a new reimbursement methodology.)