2022 Session

Budget Amendments - SB30 (Floor Approved)

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Modify Medicaid Value Based Purchasing Program for Nursing Homes (language only)

Item 304 #9s

Item 304 #9s

Health and Human Resources
Department of Medical Assistance Services


Page 335, line 57 after “members.” strike the remainder of the line.

Page 335, strike line 58.

Page 335, line 59 strike “facility.” and insert:

“This funding shall be administered as a Medicaid rate add-on in the same manner as in paragraph 1. above.”


(This amendment adds language to specify that the non-metric based portion of the Value Based Purchasing (VBP) program funding be provided as a Medicaid payment add-on to the rate instead of a lump-sum payment. Under the federally required structure of a VBP program, paying the non-metric based portion under VBP would delay payment until December for the relevant two years of non-metric based payments. This will create a significant cash flow issue for five months beginning July 1, 2022, when rates would fully revert to having no add-on despite significant ongoing expenses. By excluding the non-metric based amount from federal approval of the VBP program and instead paying that portion as a Medicaid payment add-on to the rate (like the current $15 per day), the delay would be avoided with an immediate add-on of $7.50 per day (down from $15 per day) for dates of service beginning July 1, 2022. In addition to the cash flow issue due to the timing of the lump-sum approach, delaying the non-metric based portion until December is contrary to the purpose of the funding, which was intended to help facilities improve to meet the metrics. As a lump sum, payment in December would occur after the measurement period because the first year of the program has already ended.)