2015 Session

Budget Amendments - HB1400 (Conference Report)

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Hold Harmless Funding for Nursing Facility Payment Methodology Change

Item 301 #16c

Item 301 #16c

First Year - FY2015 Second Year - FY2016
Health and Human Resources
Department of Medical Assistance Services FY2015 $0 FY2016 $160,061 GF
FY2015 $0 FY2016 $160,061 NGF

Page 257, line 32, strike "$8,515,698,638" and insert "$8,516,018,760".
Page 273, after line 4, insert:
"6. The department shall amend the State Plan for Medical Assistance to reimburse the price-based operating rate rather than the transition operating rate to any nursing facility whose licensed bed capacity decreased by at least 30 beds after 2011 and whose occupancy increased from less than 70 percent in 2011 to more than 80 percent in 2013.  The department shall have the authority to implement this reimbursement change effective July 1, 2015, and prior to completion of any regulatory process in order to effect such change."

(This amendment provides funding and adds language to hold harmless any nursing facility which was negatively impacted by the conversion from a cost-based reimbursement methodology to a price-based reimbursement methodology for Medicaid nursing facility payments because the methodology did not account for recent facility improvements to provide high quality care. The transition rates that would be imposed on such facilities are based on a three-year period, which penalizes facilities which have recently improved care and invested significant funds to improve the facility. Language is added to outline criteria to reimburse facilities in such circumstances at the price-based operating rate instead of the transition operating rate effective July 1, 2015.)