2012 Session

Budget Amendments - SB30 (Member Request)

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Chief Patron: Hanger
Co-Patron(s): Northam, Puckett, Ruff
Eliminate 90% Occupancy Std. for Nursing Home Indirect & Plant Costs

Item 307 #3s

Item 307 #3s

First Year - FY2013 Second Year - FY2014
Health And Human Resources
Medical Assistance Services, Department of FY2013 $2,923,774 FY2014 $2,923,774 GF
FY2013 $2,923,774 FY2014 $2,923,774 NGF

Page 225, line 49, strike "$7,438,749,436" and insert "$7,444,596,984".
Page 225, line 49, strike "$9,042,320,948" and insert "$9,048,168,496".
Page 239, after line 5, insert:
"LLL.  The Department of Medical Assistance Services shall amend the State Plan for Medical Assistance to increase the reimbursement rates in the current nursing facility operation payment system to eliminate the occupancy standard of 90 percent for indirect and plant costs, effective July 1, 2011.  The department shall have the authority to promulgate emergency regulations to implement this change within 280 days or less from the enactment date of the act."

(This amendment adds $2.9 million GF and $2.9 million NGF from federal Medicaid matching funds each year of the biennium to eliminate the 90 percent occupancy standard used in calculating nursing home reimbursement rates for indirect care and plant costs. Currently, nursing home per diem payments are calculated by dividing total the Medicaid reimbursable cost by the number of Medicaid patient days. This number is then adjusted by an occupancy rate factor. For facilities with less than 90% occupancy, this results in a lower per diem amount. Currently 89 of 259 nursing facilities have capacities below 90 percent.).)