90th General Assembly
Summary of SB1420
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Senate Sponsors:
MAITLAND.

House Sponsors:
DAVIS,MONIQUE-KRAUSE-GILES-MCKEON-ACEVEDO

Short description: 
MEDICAID-REIMBURSEMENT RATES                                               

Synopsis of Bill as introduced:
        Amends the "Medical Assistance" Article of the Public  Aid  Code.      
   With  respect  to  standards  of  payment to long-term care providers,      
   provides that after June 30, 1998 the payment rates shall  include  an      
   update  for  inflation  and  shall  be  based  on the most recent cost      
   reports on file with the Department no  later  than  April  1  of  the      
   current  rate year.  With respect to the reimbursement methodology for      
   long-term care providers, provides that (i) beginning not  later  than      
   July  1, 1999 the nursing component of the reimbursement rate shall be      
   calculated according to a Resource Utilization Grouping System  (RUGS)      
   model  and  (ii)  beginning  not  later than July 1, 2000 the capital,      
   support, and nursing components of the  reimbursement  rate  shall  be      
   calculated  according  to  a  methodology that is entirely cost-based.      
   Effective immediately.                                                      
        SENATE AMENDMENT NO. 1.                                                
          Deletes reference to:                                                
          305 ILCS 5/5-5.4                                                     
        Deletes everything.  Amends the "Medical Assistance"  Article  of      
   the  Public Aid Code.  Makes stylistic changes in a Section concerning      
   reimbursement methodology for long-term care providers.                     
        HOUSE AMENDMENT NO. 1.                                                 
          Deletes reference to:                                                
          305 ILCS 5/5-5.21                                                    
          Adds reference to:                                                   
          305 ILCS 5/5-5.4                from Ch. 23, par. 5-5.4              
        Deletes everything.  Amends the "Medical Assistance"  Article  of      
   the  Public  Aid Code.  In Section concerning standards of payment for      
   skilled nursing and intermediate care services,  provides  that  rates      
   established on July 1, 1998 shall be based on facility cost reports on      
   file  with  the  Department  of  Public  Aid  on  April  1,  1996, and      
   reimbursement based on those  rates  shall  be  payable  for  services      
   provided on or after October 1, 1998.  Provides that effective October      
   1,  1998,  the  Department shall reimburse for the actual cost of real      
   estate taxes  paid  by  the  facility,  prorated  for  the  facility's      
   Medicaid census.  Effective immediately.                                    
          FISCAL NOTE, H-AM 1 (Dpt. Public Aid)                                
          Estimated cost is $41.4 M for FY99 (GRF share, $15.2 M).             
          Annualized cost for subsequent fiscal years is $46.9 M               
          (GRF share for FY2000, $22.8 M.)                                     
          STATE MANDATES ACT FISCAL NOTE, H-AM 1                               
          Fails to create a State mandate.                                     
          FISCAL NOTE (Dpt. Human Services)                                    
          SB 1420 is to be $1.9 million for FY99. The annualized cost          
          will exceed the upper limits in FY2000 by $5.5 million.              
        HOUSE AMENDMENT NO. 2.                                                 
        Replaces everything after the enacting clause.  Amends the Public      
   Aid Code with respect to standards of Medicaid  payments  for  nursing      
   home  services.  Provides that rates established on July 1, 1998 shall      
   be based on the facility cost reports on file with the  Department  of      
   Public Aid on April 1, 1997, updated to the midpoint of the rate year,      
   and reimbursement based upon those rates shall be payable for services      
   provided  on  or after October 1, 1998.  Effective October 1, 1998 the      
   Department shall reimburse for the actual cost of  real  estate  taxes      
   paid  by  the  facility,  prorated for the facility's Medicaid census.      
   Effective immediately.                                                      
          STATE MANDATES ACT FISCAL NOTE, H-AM 2                               
          No change from previous State mandates note.                         
          CORRECTIONAL NOTE, H-AM 2                                            
          No fiscal or prison population impact on DOC.                        
          JUDICIAL NOTE, H-AM 2                                                
          No decrease or increase in need for the number of judges.            
          FISCAL NOTE, H-AM 2 (Dpt. Public Aid)                                
          Estimated cost is $91 M for FY99. Annualized cost for                
          subsequent fiscal years is $136.4 M.                                 
          FISCAL NOTE H-AM 2 (Dpt. Human Services)                             
          Full cost would be $306,120,132; annualized difference from          
          current cost is $22,788,882, and annualized difference with          
          October implementation adjustments is $15,667,357.                   
 
Last action on Bill: SESSION SINE DIE

   Last action date: 99-01-12

           Location: Senate

 Amendments to Bill: AMENDMENTS ADOPTED: HOUSE -   2     SENATE -   1


   END OF INQUIRY 
                                                                               



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