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92_HB4319 LRB9212464DJgcB 1 AN ACT in relation to public aid. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 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) ProvideProvidesfor the determination of a 12 facility's payment for skilled nursing and intermediate care 13 services on a prospective basis. The amount of the payment 14 rate for all nursing facilities certified under the medical 15 assistance program shall be prospectively established 16 annually on the basis of historical, financial, and 17 statistical data reflecting actual costs from prior years, 18 which shall be applied to the current rate year and updated 19 for inflation, except that the capital cost element for newly 20 constructed facilities shall be based upon projected budgets. 21 The annually established payment rate shall take effect on 22 July 1 in 1984 and subsequent years. Rate increases shall be 23 provided annually thereafter on July 1 in 1984 and on each 24 subsequent July 1 in the following years, except that no rate 25 increase and no update for inflation shall be provided on or 26 after July 1, 1994 and before July 1, 2002, unless 27 specifically provided for in this Section. 28 For facilities licensed by the Department of Public 29 Health under the Nursing Home Care Act as Intermediate Care 30 for the Developmentally Disabled facilities or Long Term Care 31 for Under Age 22 facilities, the rates taking effect on July -2- LRB9212464DJgcB 1 1, 1998 shall include an increase of 3%. For facilities 2 licensed by the Department of Public Health under the Nursing 3 Home Care Act as Skilled Nursing facilities or Intermediate 4 Care facilities, the rates taking effect on July 1, 1998 5 shall include an increase of 3% plus $1.10 per resident-day, 6 as defined by the Department. 7 For facilities licensed by the Department of Public 8 Health under the Nursing Home Care Act as Intermediate Care 9 for the Developmentally Disabled facilities or Long Term Care 10 for Under Age 22 facilities, the rates taking effect on July 11 1, 1999 shall include an increase of 1.6% plus $3.00 per 12 resident-day, as defined by the Department. 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, 1999 16 shall include an increase of 1.6% and, for services provided 17 on or after October 1, 1999, shall be increased by $4.00 per 18 resident-day, as defined by the Department. 19 For facilities licensed by the Department of Public 20 Health under the Nursing Home Care Act as Intermediate Care 21 for the Developmentally Disabled facilities or Long Term Care 22 for Under Age 22 facilities, the rates taking effect on July 23 1, 2000 shall include an increase of 2.5% per resident-day, 24 as defined by the Department. For facilities licensed by the 25 Department of Public Health under the Nursing Home Care Act 26 as Skilled Nursing facilities or Intermediate Care 27 facilities, the rates taking effect on July 1, 2000 shall 28 include an increase of 2.5% per resident-day, as defined by 29 the Department. 30 For facilities licensed by the Department of Public 31 Health under the Nursing Home Care Act as skilled nursing 32 facilities or intermediate care facilities, a new payment 33 methodology must be implemented for the nursing component of 34 the rate effective July 1, 2003. The Department of Public Aid -3- LRB9212464DJgcB 1 shall develop the new payment methodology using the Minimum 2 Data Set (MDS) as the instrument to collect information 3 concerning nursing home resident condition necessary to 4 compute the rate. The Department of Public Aid shall develop 5 the new payment methodology to meet the unique needs of 6 Illinois nursing home residents while remaining subject to 7 the appropriations provided by the General Assembly. For a 8 facility that would receive a lower rate per patient under 9 the new system than the facility received effective on the 10 date immediately preceding the date that the Department 11 implements the new payment methodology, the rate per patient 12 for the facility shall be held at the level in effect on the 13 date immediately preceding the date that the Department 14 implements the new payment methodology until a higher rate of 15 reimbursement is achieved by that facility. 16 For facilities licensed by the Department of Public 17 Health under the Nursing Home Care Act as Intermediate Care 18 for the Developmentally Disabled facilities or Long Term Care 19 for Under Age 22 facilities, the rates taking effect on March 20 1, 2001 shall include a statewide increase of 7.85%, as 21 defined by the Department. 22 For facilities licensed by the Department of Public 23 Health under the Nursing Home Care Act as Intermediate Care 24 for the Developmentally Disabled facilities or Long Term Care 25 for Under Age 22 facilities, the rates taking effect on April 26 1, 2002 shall include a statewide increase of 2.0%, as 27 defined by the Department. 28 For facilities licensed by the Department of Public 29 Health under the Nursing Home Care Act as skilled nursing 30 facilities or intermediate care facilities, the rates taking 31 effect on July 1, 2001, and each subsequent year thereafter, 32 shall be computed using the most recent cost reports on file 33 with the Department of Public Aid no later than April 1, 2000 34 updated for inflation to January 1, 2001. For rates -4- LRB9212464DJgcB 1 effective July 1, 2001 only, rates shall be the greater of 2 the rate computed for July 1, 2001 or the rate effective on 3 June 30, 2001. 4 Rates established effective each July 1 shall govern 5 payment for services rendered throughout that fiscal year, 6 except that rates established on July 1, 1996 shall be 7 increased by 6.8% for services provided on or after January 8 1, 1997. Such rates will be based upon the rates calculated 9 for the year beginning July 1, 1990, and for subsequent years 10 thereafter until June 30, 2001 shall be based on the facility 11 cost reports for the facility fiscal year ending at any point 12 in time during the previous calendar year, updated to the 13 midpoint of the rate year. The cost report shall be on file 14 with the Department no later than April 1 of the current rate 15 year. Should the cost report not be on file by April 1, the 16 Department shall base the rate on the latest cost report 17 filed by each skilled care facility and intermediate care 18 facility, updated to the midpoint of the current rate year. 19 In determining rates for services rendered on and after July 20 1, 1985, fixed time shall not be computed at less than zero. 21 The Department shall not make any alterations of regulations 22 which would reduce any component of the Medicaid rate to a 23 level below what that component would have been utilizing in 24 the rate effective on July 1, 1984. 25 (2) Shall take into account the actual costs incurred by 26 facilities in providing services for recipients of skilled 27 nursing and intermediate care services under the medical 28 assistance program. 29 (3) Shall take into account the medical and 30 psycho-social characteristics and needs of the patients. 31 (4) Shall take into account the actual costs incurred by 32 facilities in meeting licensing and certification standards 33 imposed and prescribed by the State of Illinois, any of its 34 political subdivisions or municipalities and by the U.S. -5- LRB9212464DJgcB 1 Department of Health and Human Services pursuant to Title XIX 2 of the Social Security Act. 3 The Department of Public Aid shall develop precise 4 standards for payments to reimburse nursing facilities for 5 any utilization of appropriate rehabilitative personnel for 6 the provision of rehabilitative services which is authorized 7 by federal regulations, including reimbursement for services 8 provided by qualified therapists or qualified assistants, and 9 which is in accordance with accepted professional practices. 10 Reimbursement also may be made for utilization of other 11 supportive personnel under appropriate supervision. 12 (Source: P.A. 91-24, eff. 7-1-99; 91-712, eff. 7-1-00; 92-10, 13 eff. 6-11-01; 92-31, eff. 6-28-01; revised 12-13-01.)