2023 Session

Budget Amendments - SB800 (Member Request)

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Chief Patron: Marsden
Locally-owned Nursing Facility Fee

Item 304 #16s

Item 304 #16s

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 allows five local government owned and operated nursing facilities to retain a higher portion of supplemental payments through intergovernmental transfer of funds. The Department of Medical Assistance Services (DMAS) retains the Certified Public Expenditure (CPE), which is an administrative fee to cover the cost of operating the program. The formula utilized by DMAS to calculate the CPE has resulted in the CPE it collects increasing over the past several years. For FY 2023, the administrative fee will consume 77 percent of the supplemental payments received by the nursing homes. Capping the CPE 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.)