2023 Session

Budget Amendments - HB1400 (Member Request)

View Budget Item
View Budget Item amendments

Chief Patron: Fariss
Locally-owned Nursing Facility Fee

Item 304 #2h

Item 304 #2h

First Year - FY2023 Second Year - FY2024
Health and Human Resources
Department of Medical Assistance Services FY2023 $0 FY2024 $11,654,251 GF
FY2023 $0 FY2024 ($12,481,025) NGF

Page 355, line 40, strike "$22,919,178,986" and insert "$22,918,352,212".

Page 384, after line 31, insert:

"YYYY. The Department of Medicaid Assistance Services shall have the authority to draw down federal funds to cover unreimbursed Medicaid costs for inpatient services provided by nonstate government-owned nursing facilities as certified by the provider through cost reports not to exceed three percent of the net supplemental Medicaid payment each nursing home is entitled. The department shall have the authority to implement this reimbursement change prior to completion of any regulatory process in order to effect such change. To the extent federal approval requires alternative approaches to achieve the same general results, the department shall have the authority to follow the federal guidance effecting this change."


(This amendment adds $11.7 million from the general fund and reduces $12.5 million in nongeneral funds by capping the funds that the Department of Medical Assistance Services (DMAS) retains related to the intergovernmental transfer of funds by which Medicaid provides supplemental payments for five local government owned and operated nursing facilities. DMAS uses a formula to calculate the retained funds that has resulted in decreases in the amount of the supplemental payments received by the nursing homes. Any funds in excess of the costs to administer the program are deposited into the Virginia Health Care Fund and used to defray the general fund cost to operate the Medicaid program. Capping the amount that DMAS may retain from these intergovernmental transfers will allow DMAS to continue to receive the $400,000 in costs it needs to operate the program, but will allow the nursing homes to receive the benefit of the supplemental payments.)