2021 Session

Budget Amendments - HB1800 (Member Request)

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Chief Patron: Sickles
Deferral of Nursing Home Rebasing (language only)

Item 313 #26h

Item 313 #26h

Health and Human Resources
Department of Medical Assistance Services


Page 380, line 10, after "LLLLL." insert "1."

Page 382, after line 17, insert:

"AAAAAA. The Department of Medical Assistance Services shall defer the next scheduled nursing facility rate rebasing for one year in order to utilize the calendar year 2021 cost reports as the base year.  The deferred year's rates would reflect the prior year rates inflated according to the existing reimbursement regulations. The department shall have the authority to implement these changes effective July 1, 2021 and prior to the completion of any regulatory process undertaken in order to effect such change."


(This amendment adds language directing the Department of Medical Assistance Services to defer nursing home rebasing until it is able to use 2021 cost reports in the rebasing process. Under the current rebasing schedule, cost reports ending in calendar year (CY) 2020 will be the basis of the next nursing facility rate rebasing. Due to the COVID-19 pandemic, the 2020 base year cost reports will contain significant variable data that reflects a mixture of increased costs (some permanent, others temporary) and reduced occupancy. It is possible that the department would determine a “need” to make artificial adjustments to that data, though there is little certainty and potential disagreement over what those adjustments might be. Given the COVID-19 vaccination program, it is expected that the 2021 cost reports would not be as affected by the increased costs associated with the COVID-19 pandemic, and would better reflect ongoing Medicaid costs as a basis for the next rebasing.)