State of Illinois
92nd General Assembly
Legislation

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92_HB5567ham001

 










                                           LRB9212442DJgcam01

 1                    AMENDMENT TO HOUSE BILL 5567

 2        AMENDMENT NO.     .  Amend House Bill 5567  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  Provides  for  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
 
                            -2-            LRB9212442DJgcam01
 1    provided  annually  thereafter  on July 1 in 1984 and on each
 2    subsequent July 1 in the following years, except that No rate
 3    increase and no update for inflation shall be provided on  or
 4    after   July   1,  1994  and  before  July  1,  2002,  unless
 5    specifically provided for in this Section.
 6        For facilities  licensed  by  the  Department  of  Public
 7    Health  under  the Nursing Home Care Act as Intermediate Care
 8    for the Developmentally Disabled facilities or Long Term Care
 9    for Under Age 22 facilities, the rates taking effect on  July
10    1,  1998  shall  include  an  increase of 3%.  For facilities
11    licensed by the Department of Public Health under the Nursing
12    Home Care Act as Skilled Nursing facilities  or  Intermediate
13    Care  facilities,  the  rates  taking  effect on July 1, 1998
14    shall include an increase of 3% plus $1.10 per  resident-day,
15    as defined by the Department.
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 July
20    1, 1999 shall include an increase  of  1.6%  plus  $3.00  per
21    resident-day,  as  defined by the Department.  For facilities
22    licensed by the Department of Public Health under the Nursing
23    Home Care Act as Skilled Nursing facilities  or  Intermediate
24    Care  facilities,  the  rates  taking  effect on July 1, 1999
25    shall include an increase of 1.6% and, for services  provided
26    on  or after October 1, 1999, shall be increased by $4.00 per
27    resident-day, as defined by the Department.
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
32    1,  2000  shall include an increase of 2.5% per resident-day,
33    as defined by the Department.  For facilities licensed by the
34    Department of Public Health under the Nursing Home  Care  Act
 
                            -3-            LRB9212442DJgcam01
 1    as   Skilled   Nursing   facilities   or   Intermediate  Care
 2    facilities, the rates taking effect on  July  1,  2000  shall
 3    include  an  increase of 2.5% per resident-day, as defined by
 4    the Department.
 5        For facilities  licensed  by  the  Department  of  Public
 6    Health  under  the  Nursing  Home Care Act as skilled nursing
 7    facilities or intermediate care  facilities,  a  new  payment
 8    methodology  must be implemented for the nursing component of
 9    the rate effective July 1, 2003. The Department of Public Aid
10    shall develop the new payment methodology using  the  Minimum
11    Data  Set  (MDS)  as  the  instrument  to collect information
12    concerning  nursing  home  resident  condition  necessary  to
13    compute the rate. The Department of Public Aid shall  develop
14    the  new  payment  methodology  to  meet  the unique needs of
15    Illinois nursing home residents while  remaining  subject  to
16    the  appropriations  provided  by  the  General  Assembly.  A
17    transition  period  from the payment methodology in effect on
18    June 30, 2003 to the payment methodology in effect on July 1,
19    2003 shall be provided for a period  not  exceeding  2  years
20    after  implementation  of  the  new  payment  methodology  as
21    follows:
22             (A)  For  a  facility  that  would  receive  a lower
23        nursing component rate per  patient  day  under  the  new
24        system  than  the facility received effective on the date
25        immediately  preceding  the  date  that  the   Department
26        implements  the  new  payment  methodology,  the  nursing
27        component  rate per patient day for the facility shall be
28        held at the level  in  effect  on  the  date  immediately
29        preceding the date that the Department implements the new
30        payment methodology until a higher nursing component rate
31        of reimbursement is achieved by that facility.
32             (B)  For  a  facility  that  would  receive a higher
33        nursing component rate per patient day under the  payment
34        methodology  in  effect on July 1, 2003 than the facility
 
                            -4-            LRB9212442DJgcam01
 1        received effective on the date immediately preceding  the
 2        date  that  the  Department  implements  the  new payment
 3        methodology, the nursing component rate per  patient  day
 4        for the facility shall be adjusted.
 5             (C)  Notwithstanding  paragraphs  (A)  and  (B), the
 6        nursing component rate per patient day for  the  facility
 7        shall  be  adjusted subject to appropriations provided by
 8        the General Assembly.
 9        For facilities  licensed  by  the  Department  of  Public
10    Health  under  the Nursing Home Care Act as Intermediate Care
11    for the Developmentally Disabled facilities or Long Term Care
12    for Under Age 22 facilities, the rates taking effect on March
13    1, 2001 shall include  a  statewide  increase  of  7.85%,  as
14    defined by the Department.
15        For  facilities  licensed  by  the  Department  of Public
16    Health under the Nursing Home Care Act as  Intermediate  Care
17    for the Developmentally Disabled facilities or Long Term Care
18    for Under Age 22 facilities, the rates taking effect on April
19    1,  2002  shall  include  a  statewide  increase  of 2.0%, as
20    defined by the Department.
21        For facilities  licensed  by  the  Department  of  Public
22    Health  under  the  Nursing  Home Care Act as skilled nursing
23    facilities or intermediate care facilities, the rates  taking
24    effect  on July 1, 2001, and each subsequent year thereafter,
25    shall be computed using the most recent cost reports on  file
26    with the Department of Public Aid no later than April 1, 2000
27    updated   for  inflation  to  January  1,  2001.   For  rates
28    effective July 1, 2001 only, rates shall be  the  greater  of
29    the  rate  computed for July 1, 2001 or the rate effective on
30    June 30, 2001.
31        Rates established effective  each  July  1  shall  govern
32    payment  for  services  rendered throughout that fiscal year,
33    except that rates  established  on  July  1,  1996  shall  be
34    increased  by  6.8% for services provided on or after January
 
                            -5-            LRB9212442DJgcam01
 1    1, 1997.  Such rates will be based upon the rates  calculated
 2    for the year beginning July 1, 1990, and for subsequent years
 3    thereafter until June 30, 2001 shall be based on the facility
 4    cost reports for the facility fiscal year ending at any point
 5    in  time  during  the  previous calendar year, updated to the
 6    midpoint of the rate year.  The cost report shall be on  file
 7    with the Department no later than April 1 of the current rate
 8    year.   Should the cost report not be on file by April 1, the
 9    Department shall base the rate  on  the  latest  cost  report
10    filed  by  each  skilled  care facility and intermediate care
11    facility, updated to the midpoint of the current  rate  year.
12    In  determining rates for services rendered on and after July
13    1, 1985, fixed time shall not be computed at less than  zero.
14    The  Department shall not make any alterations of regulations
15    which would reduce any component of the Medicaid  rate  to  a
16    level  below what that component would have been utilizing in
17    the rate effective on July 1, 1984.
18        (2)  Shall take into account the actual costs incurred by
19    facilities in providing services for  recipients  of  skilled
20    nursing  and  intermediate  care  services  under the medical
21    assistance program.
22        (3)  Shall   take   into   account   the   medical    and
23    psycho-social characteristics and needs of the patients.
24        (4)  Shall take into account the actual costs incurred by
25    facilities  in  meeting licensing and certification standards
26    imposed and prescribed by the State of Illinois, any  of  its
27    political  subdivisions  or  municipalities  and  by the U.S.
28    Department of Health and Human Services pursuant to Title XIX
29    of the Social Security Act.
30        The  Department  of  Public  Aid  shall  develop  precise
31    standards for payments to reimburse  nursing  facilities  for
32    any  utilization  of appropriate rehabilitative personnel for
33    the provision of rehabilitative services which is  authorized
34    by  federal regulations, including reimbursement for services
 
                            -6-            LRB9212442DJgcam01
 1    provided by qualified therapists or qualified assistants, and
 2    which is in accordance with accepted professional  practices.
 3    Reimbursement  also  may  be  made  for  utilization of other
 4    supportive personnel under appropriate supervision.
 5    (Source: P.A. 91-24, eff. 7-1-99; 91-712, eff. 7-1-00; 92-10,
 6    eff. 6-11-01; 92-31, eff. 6-28-01; revised 12-13-01.)".

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