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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) 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-2- LRB9212442DJgcam01 1provided annually thereafter on July 1 in 1984 and on each2subsequent July 1 in the following years, except thatNo 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.)".