Public Act 101-0348
 
SB1696 EnrolledLRB101 09721 KTG 54821 b

    AN ACT concerning public aid.
 
    Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
 
    Section 5. The Illinois Public Aid Code is amended by
changing Section 5-5.2 as follows:
 
    (305 ILCS 5/5-5.2)  (from Ch. 23, par. 5-5.2)
    Sec. 5-5.2. Payment.
    (a) All nursing facilities that are grouped pursuant to
Section 5-5.1 of this Act shall receive the same rate of
payment for similar services.
    (b) It shall be a matter of State policy that the Illinois
Department shall utilize a uniform billing cycle throughout the
State for the long-term care providers.
    (c) Notwithstanding any other provisions of this Code, the
methodologies for reimbursement of nursing services as
provided under this Article shall no longer be applicable for
bills payable for nursing services rendered on or after a new
reimbursement system based on the Resource Utilization Groups
(RUGs) has been fully operationalized, which shall take effect
for services provided on or after January 1, 2014.
    (d) The new nursing services reimbursement methodology
utilizing RUG-IV 48 grouper model, which shall be referred to
as the RUGs reimbursement system, taking effect January 1,
2014, shall be based on the following:
        (1) The methodology shall be resident-driven,
    facility-specific, and cost-based.
        (2) Costs shall be annually rebased and case mix index
    quarterly updated. The nursing services methodology will
    be assigned to the Medicaid enrolled residents on record as
    of 30 days prior to the beginning of the rate period in the
    Department's Medicaid Management Information System (MMIS)
    as present on the last day of the second quarter preceding
    the rate period based upon the Assessment Reference Date of
    the Minimum Data Set (MDS).
        (3) Regional wage adjustors based on the Health Service
    Areas (HSA) groupings and adjusters in effect on April 30,
    2012 shall be included.
        (4) Case mix index shall be assigned to each resident
    class based on the Centers for Medicare and Medicaid
    Services staff time measurement study in effect on July 1,
    2013, utilizing an index maximization approach.
        (5) The pool of funds available for distribution by
    case mix and the base facility rate shall be determined
    using the formula contained in subsection (d-1).
    (d-1) Calculation of base year Statewide RUG-IV nursing
base per diem rate.
        (1) Base rate spending pool shall be:
            (A) The base year resident days which are
        calculated by multiplying the number of Medicaid
        residents in each nursing home as indicated in the MDS
        data defined in paragraph (4) by 365.
            (B) Each facility's nursing component per diem in
        effect on July 1, 2012 shall be multiplied by
        subsection (A).
            (C) Thirteen million is added to the product of
        subparagraph (A) and subparagraph (B) to adjust for the
        exclusion of nursing homes defined in paragraph (5).
        (2) For each nursing home with Medicaid residents as
    indicated by the MDS data defined in paragraph (4),
    weighted days adjusted for case mix and regional wage
    adjustment shall be calculated. For each home this
    calculation is the product of:
            (A) Base year resident days as calculated in
        subparagraph (A) of paragraph (1).
            (B) The nursing home's regional wage adjustor
        based on the Health Service Areas (HSA) groupings and
        adjustors in effect on April 30, 2012.
            (C) Facility weighted case mix which is the number
        of Medicaid residents as indicated by the MDS data
        defined in paragraph (4) multiplied by the associated
        case weight for the RUG-IV 48 grouper model using
        standard RUG-IV procedures for index maximization.
            (D) The sum of the products calculated for each
        nursing home in subparagraphs (A) through (C) above
        shall be the base year case mix, rate adjusted weighted
        days.
        (3) The Statewide RUG-IV nursing base per diem rate:
            (A) on January 1, 2014 shall be the quotient of the
        paragraph (1) divided by the sum calculated under
        subparagraph (D) of paragraph (2); and
            (B) on and after July 1, 2014, shall be the amount
        calculated under subparagraph (A) of this paragraph
        (3) plus $1.76.
        (4) Minimum Data Set (MDS) comprehensive assessments
    for Medicaid residents on the last day of the quarter used
    to establish the base rate.
        (5) Nursing facilities designated as of July 1, 2012 by
    the Department as "Institutions for Mental Disease" shall
    be excluded from all calculations under this subsection.
    The data from these facilities shall not be used in the
    computations described in paragraphs (1) through (4) above
    to establish the base rate.
    (e) Beginning July 1, 2014, the Department shall allocate
funding in the amount up to $10,000,000 for per diem add-ons to
the RUGS methodology for dates of service on and after July 1,
2014:
        (1) $0.63 for each resident who scores in I4200
    Alzheimer's Disease or I4800 non-Alzheimer's Dementia.
        (2) $2.67 for each resident who scores either a "1" or
    "2" in any items S1200A through S1200I and also scores in
    RUG groups PA1, PA2, BA1, or BA2.
    (e-1) (Blank).
    (e-2) For dates of services beginning January 1, 2014, the
RUG-IV nursing component per diem for a nursing home shall be
the product of the statewide RUG-IV nursing base per diem rate,
the facility average case mix index, and the regional wage
adjustor. Transition rates for services provided between
January 1, 2014 and December 31, 2014 shall be as follows:
        (1) The transition RUG-IV per diem nursing rate for
    nursing homes whose rate calculated in this subsection
    (e-2) is greater than the nursing component rate in effect
    July 1, 2012 shall be paid the sum of:
            (A) The nursing component rate in effect July 1,
        2012; plus
            (B) The difference of the RUG-IV nursing component
        per diem calculated for the current quarter minus the
        nursing component rate in effect July 1, 2012
        multiplied by 0.88.
        (2) The transition RUG-IV per diem nursing rate for
    nursing homes whose rate calculated in this subsection
    (e-2) is less than the nursing component rate in effect
    July 1, 2012 shall be paid the sum of:
            (A) The nursing component rate in effect July 1,
        2012; plus
            (B) The difference of the RUG-IV nursing component
        per diem calculated for the current quarter minus the
        nursing component rate in effect July 1, 2012
        multiplied by 0.13.
    (f) Notwithstanding any other provision of this Code, on
and after July 1, 2012, reimbursement rates associated with the
nursing or support components of the current nursing facility
rate methodology shall not increase beyond the level effective
May 1, 2011 until a new reimbursement system based on the RUGs
IV 48 grouper model has been fully operationalized.
    (g) Notwithstanding any other provision of this Code, on
and after July 1, 2012, for facilities not designated by the
Department of Healthcare and Family Services as "Institutions
for Mental Disease", rates effective May 1, 2011 shall be
adjusted as follows:
        (1) Individual nursing rates for residents classified
    in RUG IV groups PA1, PA2, BA1, and BA2 during the quarter
    ending March 31, 2012 shall be reduced by 10%;
        (2) Individual nursing rates for residents classified
    in all other RUG IV groups shall be reduced by 1.0%;
        (3) Facility rates for the capital and support
    components shall be reduced by 1.7%.
    (h) Notwithstanding any other provision of this Code, on
and after July 1, 2012, nursing facilities designated by the
Department of Healthcare and Family Services as "Institutions
for Mental Disease" and "Institutions for Mental Disease" that
are facilities licensed under the Specialized Mental Health
Rehabilitation Act of 2013 shall have the nursing,
socio-developmental, capital, and support components of their
reimbursement rate effective May 1, 2011 reduced in total by
2.7%.
    (i) On and after July 1, 2014, the reimbursement rates for
the support component of the nursing facility rate for
facilities licensed under the Nursing Home Care Act as skilled
or intermediate care facilities shall be the rate in effect on
June 30, 2014 increased by 8.17%.
    (j) During the first quarter of State Fiscal Year 2020, the
Department of Healthcare of Family Services must convene a
technical advisory group consisting of members of all trade
associations representing Illinois skilled nursing providers
to discuss changes necessary with federal implementation of
Medicare's Patient-Driven Payment Model. Implementation of
Medicare's Patient-Driven Payment Model shall, by September 1,
2020, end the collection of the MDS data that is necessary to
maintain the current RUG-IV Medicaid payment methodology. The
technical advisory group must consider a revised reimbursement
methodology that takes into account transparency,
accountability, actual staffing as reported under the
federally required Payroll Based Journal system, changes to the
minimum wage, adequacy in coverage of the cost of care, and a
quality component that rewards quality improvements.
(Source: P.A. 98-104, Article 6, Section 6-240, eff. 7-22-13;
98-104, Article 11, Section 11-35, eff. 7-22-13; 98-651, eff.
6-16-14; 98-727, eff. 7-16-14; 98-756, eff. 7-16-14; 99-78,
eff. 7-20-15.)
 
    Section 99. Effective date. This Act takes effect upon
becoming law.