2017 Session

Budget Amendments - HB1500 (Member Request)

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Chief Patron: O'Bannon
Co-Patron(s): Ingram
Increase Nursing Facility Payments

Item 306 #12h

Item 306 #12h

First Year - FY2017 Second Year - FY2018
Health and Human Resources
Department of Medical Assistance Services FY2017 $0 FY2018 $6,521,366 GF
FY2017 $0 FY2018 $6,521,366 NGF

Page 284, line 40, strike "$9,714,745,576" and insert "$9,727,788,308".

Page 298, line 3, after "facilities.", insert:

"Effective on and after July 1, 2017, the Direct Peer Group price percentage shall be increased to 108.7 percent."

Page 298, line 5, after "facilities.", insert:

"Effective on and after July 1, 2017, the Indirect Peer Group price percentage shall be increased to 101.8 percent.

3) The department shall have the authority to implement these price percentage changes effective July 1, 2017 and prior to the completion of any regulatory process in order to effect such changes."


(This amendment adds $6.5 million from the general fund and $6.5 million from matching federal Medicaid funds to increase payments for nursing homes effective July 1, 2017. Language changes the price percentages for direct and indirect care. The change will help mitigate the effect of rebasing nursing facility rates utilizing base year costs that reflect multiple years of artificially constrained payments due to budgetary constraints. By increasing the price percentages as designated, the Commonwealth will promote a more equitable reimbursement policy to ensure long-term availability of nursing facility services for Medicaid recipients for whom such care is appropriate.)