093_HB2657sam001 LRB093 04135 SJM 20285 a 1 AMENDMENT TO HOUSE BILL 2657 2 AMENDMENT NO. . Amend House Bill 2657 by replacing 3 everything after the enacting clause with the following: 4 "Section 5. The Illinois Public Aid Code is amended by 5 changing Section 5-5.4 as follows: 6 (305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4) 7 Sec. 5-5.4. Standards of Payment - Department of Public 8 Aid. The Department of Public Aid shall develop standards of 9 payment of skilled nursing and intermediate care services in 10 facilities providing such services under this Article which: 11 (1) Provide for the determination of a facility's 12 payment for skilled nursing and intermediate care services on 13 a prospective basis. The amount of the payment rate for all 14 nursing facilities certified by the Department of Public 15 Health under the Nursing Home Care Act as Intermediate Care 16 for the Developmentally Disabled facilities, Long Term Care 17 for Under Age 22 facilities, Skilled Nursing facilities, or 18 Intermediate Care facilities under the medical assistance 19 program shall be prospectively established annually on the 20 basis of historical, financial, and statistical data 21 reflecting actual costs from prior years, which shall be 22 applied to the current rate year and updated for inflation, -2- LRB093 04135 SJM 20285 a 1 except that the capital cost element for newly constructed 2 facilities shall be based upon projected budgets. The 3 annually established payment rate shall take effect on July 1 4 in 1984 and subsequent years. No rate increase and no update 5 for inflation shall be provided on or after July 1, 1994 and 6 before July 1, 2004, unless specifically provided for in this 7 Section. 8 For facilities licensed by the Department of Public 9 Health under the Nursing Home Care Act as Intermediate Care 10 for the Developmentally Disabled facilities or Long Term Care 11 for Under Age 22 facilities, the rates taking effect on July 12 1, 1998 shall include an increase of 3%. For facilities 13 licensed by the Department of Public Health under the Nursing 14 Home Care Act as Skilled Nursing facilities or Intermediate 15 Care facilities, the rates taking effect on July 1, 1998 16 shall include an increase of 3% plus $1.10 per resident-day, 17 as defined by the Department. 18 For facilities licensed by the Department of Public 19 Health under the Nursing Home Care Act as Intermediate Care 20 for the Developmentally Disabled facilities or Long Term Care 21 for Under Age 22 facilities, the rates taking effect on July 22 1, 1999 shall include an increase of 1.6% plus $3.00 per 23 resident-day, as defined by the Department. For facilities 24 licensed by the Department of Public Health under the Nursing 25 Home Care Act as Skilled Nursing facilities or Intermediate 26 Care facilities, the rates taking effect on July 1, 1999 27 shall include an increase of 1.6% and, for services provided 28 on or after October 1, 1999, shall be increased by $4.00 per 29 resident-day, as defined by the Department. 30 For facilities licensed by the Department of Public 31 Health under the Nursing Home Care Act as Intermediate Care 32 for the Developmentally Disabled facilities or Long Term Care 33 for Under Age 22 facilities, the rates taking effect on July 34 1, 2000 shall include an increase of 2.5% per resident-day, -3- LRB093 04135 SJM 20285 a 1 as defined by the Department. For facilities licensed by the 2 Department of Public Health under the Nursing Home Care Act 3 as Skilled Nursing facilities or Intermediate Care 4 facilities, the rates taking effect on July 1, 2000 shall 5 include an increase of 2.5% per resident-day, as defined by 6 the Department. 7 For facilities licensed by the Department of Public 8 Health under the Nursing Home Care Act as skilled nursing 9 facilities or intermediate care facilities, a new payment 10 methodology must be implemented for the nursing component of 11 the rate effective July 1, 2003. The Department of Public Aid 12 shall develop the new payment methodology using the Minimum 13 Data Set (MDS) as the instrument to collect information 14 concerning nursing home resident condition necessary to 15 compute the rate. The Department of Public Aid shall develop 16 the new payment methodology to meet the unique needs of 17 Illinois nursing home residents while remaining subject to 18 the appropriations provided by the General Assembly. A 19 transition period from the payment methodology in effect on 20 June 30, 2003 to the payment methodology in effect on July 1, 21 2003 shall be provided for a period not exceeding 2 years 22 after implementation of the new payment methodology as 23 follows: 24 (A) For a facility that would receive a lower 25 nursing component rate per patient day under the new 26 system than the facility received effective on the date 27 immediately preceding the date that the Department 28 implements the new payment methodology, the nursing 29 component rate per patient day for the facility shall be 30 held at the level in effect on the date immediately 31 preceding the date that the Department implements the new 32 payment methodology until a higher nursing component rate 33 of reimbursement is achieved by that facility. 34 (B) For a facility that would receive a higher -4- LRB093 04135 SJM 20285 a 1 nursing component rate per patient day under the payment 2 methodology in effect on July 1, 2003 than the facility 3 received effective on the date immediately preceding the 4 date that the Department implements the new payment 5 methodology, the nursing component rate per patient day 6 for the facility shall be adjusted. 7 (C) Notwithstanding paragraphs (A) and (B), the 8 nursing component rate per patient day for the facility 9 shall be adjusted subject to appropriations provided by 10 the General Assembly. 11 For facilities licensed by the Department of Public 12 Health under the Nursing Home Care Act as Intermediate Care 13 for the Developmentally Disabled facilities or Long Term Care 14 for Under Age 22 facilities, the rates taking effect on March 15 1, 2001 shall include a statewide increase of 7.85%, as 16 defined by the Department. 17 For facilities licensed by the Department of Public 18 Health under the Nursing Home Care Act as Intermediate Care 19 for the Developmentally Disabled facilities or Long Term Care 20 for Under Age 22 facilities, the rates taking effect on April 21 1, 2002 shall include a statewide increase of 2.0%, as 22 defined by the Department. This increase terminates on July 23 1, 2002; beginning July 1, 2002 these rates are reduced to 24 the level of the rates in effect on March 31, 2002, as 25 defined by the Department. 26 For facilities licensed by the Department of Public 27 Health under the Nursing Home Care Act as skilled nursing 28 facilities or intermediate care facilities, the rates taking 29 effect on July 1, 2001 shall be computed using the most 30 recent cost reports on file with the Department of Public Aid 31 no later than April 1, 2000, updated for inflation to January 32 1, 2001. For rates effective July 1, 2001 only, rates shall 33 be the greater of the rate computed for July 1, 2001 or the 34 rate effective on June 30, 2001. -5- LRB093 04135 SJM 20285 a 1 Notwithstanding any other provision of this Section, for 2 facilities licensed by the Department of Public Health under 3 the Nursing Home Care Act as skilled nursing facilities or 4 intermediate care facilities, the Illinois Department shall 5 determine by rule the rates taking effect on July 1, 2002, 6 which shall be 5.9% less than the rates in effect on June 30, 7 2002. 8 For facilities licensed by the Department of Public 9 Health under the Nursing Home Care Act as Intermediate Care 10 for the Developmentally Disabled facilities or as long-term 11 care facilities for residents under 22 years of age, the 12 rates taking effect on July 1, 2003 shall include a statewide 13 increase of 4%, as defined by the Department. 14 Rates established effective each July 1 shall govern 15 payment for services rendered throughout that fiscal year, 16 except that rates established on July 1, 1996 shall be 17 increased by 6.8% for services provided on or after January 18 1, 1997. Such rates will be based upon the rates calculated 19 for the year beginning July 1, 1990, and for subsequent years 20 thereafter until June 30, 2001 shall be based on the facility 21 cost reports for the facility fiscal year ending at any point 22 in time during the previous calendar year, updated to the 23 midpoint of the rate year. The cost report shall be on file 24 with the Department no later than April 1 of the current rate 25 year. Should the cost report not be on file by April 1, the 26 Department shall base the rate on the latest cost report 27 filed by each skilled care facility and intermediate care 28 facility, updated to the midpoint of the current rate year. 29 In determining rates for services rendered on and after July 30 1, 1985, fixed time shall not be computed at less than zero. 31 The Department shall not make any alterations of regulations 32 which would reduce any component of the Medicaid rate to a 33 level below what that component would have been utilizing in 34 the rate effective on July 1, 1984. -6- LRB093 04135 SJM 20285 a 1 (2) Shall take into account the actual costs incurred by 2 facilities in providing services for recipients of skilled 3 nursing and intermediate care services under the medical 4 assistance program. 5 (3) Shall take into account the medical and 6 psycho-social characteristics and needs of the patients. 7 (4) Shall take into account the actual costs incurred by 8 facilities in meeting licensing and certification standards 9 imposed and prescribed by the State of Illinois, any of its 10 political subdivisions or municipalities and by the U.S. 11 Department of Health and Human Services pursuant to Title XIX 12 of the Social Security Act. 13 The Department of Public Aid shall develop precise 14 standards for payments to reimburse nursing facilities for 15 any utilization of appropriate rehabilitative personnel for 16 the provision of rehabilitative services which is authorized 17 by federal regulations, including reimbursement for services 18 provided by qualified therapists or qualified assistants, and 19 which is in accordance with accepted professional practices. 20 Reimbursement also may be made for utilization of other 21 supportive personnel under appropriate supervision. 22 (Source: P.A. 92-10, eff. 6-11-01; 92-31, eff. 6-28-01; 23 92-597, eff. 6-28-02; 92-651, eff. 7-11-02; 92-848, eff. 24 1-1-03; 93-20, eff. 6-20-03.) 25 Section 99. Effective date. This Act takes effect upon 26 becoming law.".