HP0652
LD 928
Session - 126th Maine Legislature
 
LR 1105
Item 1
Bill Tracking, Additional Documents Chamber Status

An Act To Improve MaineCare Nursing Home Reimbursement To Preserve Access and Promote Quality

Be it enacted by the People of the State of Maine as follows:

Sec. 1. 22 MRSA §1708, sub-§3,  as corrected by PL 2001, c. 2, Pt. A, §33 and amended by PL 2003, c. 689, Pt. B, §6, is further amended to read:

3. Compensation for nursing homes.   A nursing home, as defined under section 1812-A, or any portion of a hospital or institution operated as a nursing home, when the State is liable for payment for care, must be reimbursed at a rate established by the Department of Health and Human Services pursuant to this subsection. The department may not establish a so-called "flat rate." This subsection applies to all funds, including federal funds, paid by any agency of the State to a nursing home for patient care. The department shall establish rules concerning reimbursement that:
A. Take into account the costs of providing care and services in conformity with applicable state and federal laws, rules, regulations and quality and safety standards;
B. Are reasonable and adequate to meet the costs incurred by efficiently and economically operated facilities;
C. Are consistent with federal requirements relative to limits on reimbursement under the federal Social Security Act, Title XIX;
D.  Ensure that any calculation of an occupancy percentage or other basis for adjusting the rate of reimbursement for nursing facility services to reduce the amount paid in response to a decrease in the number of residents in the facility or the percentage of the facility's occupied beds excludes all beds that the facility has removed from service for all or part of the relevant fiscal period in accordance with section 333. If the excluded beds are converted to residential care beds or another program for which the department provides reimbursement, nothing in this paragraph precludes the department from including those beds for purposes of any occupancy standard applicable to the residential care or other program pursuant to duly adopted rules of the department; and
E. Contain an annual inflation adjustment that:

(1) Recognizes regional variations in labor costs and the rates of increase in labor costs determined pursuant to the principles of reimbursement and establishes at least 4 regions for purposes of annual inflation adjustments; and

(2) Uses the applicable regional inflation factor as established by a national economic research organization selected by the department to adjust costs other than labor costs or fixed costs . ;

Rules adopted pursuant to this paragraph are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.

F For nursing home fiscal years beginning on and after July 1, 2013, provide for a supplemental payment under the MaineCare program to nursing homes that provide services to a high percentage of MaineCare residents as follows:

(1) Nursing homes whose MaineCare patient days exceed 70% of total patient days, determined on an annual basis, must receive this supplemental MaineCare payment; and

(2) For each one percent increment above 70%, eligible nursing homes must receive a supplemental MaineCare payment of $0.20 per MaineCare patient day; and

G For nursing home fiscal years beginning on and after July 1, 2014, implement a pay-for-performance program to encourage and reward strong performance by nursing homes.

(1) Criteria for incentive payment must include both improvement in performance and high levels of performance in specified areas, including, but not limited to, resident and family satisfaction, resident choices available, clinical measures and staffing levels.

(2) Payments pursuant to this paragraph must be in addition to amounts otherwise provided in accordance with applicable principles of reimbursement, and the program must be implemented in a manner that does not result in any reduction of the amount that would be paid to any home in the absence of a pay-for-performance program.

(3) Payments pursuant to this paragraph may not be required to be returned to the State if they remain in the possession of a nursing home at the time of a state audit.

Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2-A.

Sec. 2. Emergency rules. Notwithstanding the Maine Revised Statutes, Title 5, section 8054, the Department of Health and Human Services may adopt emergency rules to implement Title 22, section 1708, subsection 3, paragraph F without the necessity of demonstrating that immediate adoption is necessary to avoid a threat to public health or safety or the general welfare, if notice is given through a MaineCare provider list and 5 days or more are allowed for comment prior to adoption of the rules. The emergency rules and subsequent permanent rules must be made effective retroactively to July 1, 2013.

Sec. 3. Appropriations and allocations. The following appropriations and allocations are made.

HEALTH AND HUMAN SERVICES, DEPARTMENT OF

Nursing Facilities 0148

Initiative: Appropriates state funds and allocates matching federal funds for cost-of-living increases for MaineCare reimbursement to nursing facilities in the 2014-2015 biennium.
FEDERAL EXPENDITURES FUND 2013-14 2014-15
All Other
$2,835,000 $2,948,400
inline graphic sline.gif inline graphic sline.gif
FEDERAL EXPENDITURES FUND TOTAL $2,835,000 $2,948,400
GENERAL FUND 2013-14 2014-15
All Other
$1,665,000 $1,731,600
inline graphic sline.gif inline graphic sline.gif
GENERAL FUND TOTAL $1,665,000 $1,731,600

summary

This bill provides supplemental MaineCare payments to nursing homes that serve a high percentage of MaineCare residents and establishes a pay-for-performance program in nursing homes.

The Department of Health and Human Services is authorized to adopt emergency rules to take effect retroactively to July 1, 2013 for the establishment of the supplemental MaineCare payments to nursing homes that serve a high percentage of MaineCare residents.

The bill also appropriates state funds and allocates matching federal funds for cost-of-living increases for MaineCare reimbursement to nursing facilities in the 2014-2015 biennium.


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