093_HB3831

 
                                     LRB093 13153 LCB 18416 b

 1        AN ACT concerning 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)  Provide   for  the  determination  of  a  facility's
12    payment for skilled nursing and intermediate care services on
13    a prospective basis. The amount of the payment rate  for  all
14    nursing  facilities  certified  by  the  Department of Public
15    Health under the Nursing Home Care Act as  Intermediate  Care
16    for  the  Developmentally Disabled facilities, Long Term Care
17    for Under Age 22 facilities, Skilled Nursing  facilities,  or
18    Intermediate  Care  facilities  under  the medical assistance
19    program shall be prospectively established  annually  on  the
20    basis   of   historical,   financial,  and  statistical  data
21    reflecting actual costs from  prior  years,  which  shall  be
22    applied  to  the current rate year and updated for inflation,
23    except that the capital cost element  for  newly  constructed
24    facilities  shall  be  based  upon  projected  budgets.   The
25    annually established payment rate shall take effect on July 1
26    in 1984 and subsequent years.  No rate increase and no update
27    for  inflation shall be provided on or after July 1, 1994 and
28    before July 1, 2004, unless specifically provided for in this
29    Section.
30        For facilities  licensed  by  the  Department  of  Public
31    Health  under  the Nursing Home Care Act as Intermediate Care
 
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 1    for the Developmentally Disabled facilities or Long Term Care
 2    for Under Age 22 facilities, the rates taking effect on  July
 3    1,  1998  shall  include  an  increase of 3%.  For facilities
 4    licensed by the Department of Public Health under the Nursing
 5    Home Care Act as Skilled Nursing facilities  or  Intermediate
 6    Care  facilities,  the  rates  taking  effect on July 1, 1998
 7    shall include an increase of 3% plus $1.10 per  resident-day,
 8    as defined by the Department.
 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 July
13    1, 1999 shall include an increase  of  1.6%  plus  $3.00  per
14    resident-day,  as  defined by the Department.  For facilities
15    licensed by the Department of Public Health under the Nursing
16    Home Care Act as Skilled Nursing facilities  or  Intermediate
17    Care  facilities,  the  rates  taking  effect on July 1, 1999
18    shall include an increase of 1.6% and, for services  provided
19    on  or after October 1, 1999, shall be increased by $4.00 per
20    resident-day, as defined by the Department.
21        For facilities  licensed  by  the  Department  of  Public
22    Health  under  the Nursing Home Care Act as Intermediate Care
23    for the Developmentally Disabled facilities or Long Term Care
24    for Under Age 22 facilities, the rates taking effect on  July
25    1,  2000  shall include an increase of 2.5% per resident-day,
26    as defined by the Department.  For facilities licensed by the
27    Department of Public Health under the Nursing Home  Care  Act
28    as   Skilled   Nursing   facilities   or   Intermediate  Care
29    facilities, the rates taking effect on  July  1,  2000  shall
30    include  an  increase of 2.5% per resident-day, as defined by
31    the Department.
32        For facilities  licensed  by  the  Department  of  Public
33    Health  under  the  Nursing  Home Care Act as skilled nursing
34    facilities or intermediate care  facilities,  a  new  payment
 
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 1    methodology  must be implemented for the nursing component of
 2    the rate effective July 1, 2003. The Department of Public Aid
 3    shall develop the new payment methodology using  the  Minimum
 4    Data  Set  (MDS)  as  the  instrument  to collect information
 5    concerning  nursing  home  resident  condition  necessary  to
 6    compute the rate. The Department of Public Aid shall  develop
 7    the  new  payment  methodology  to  meet  the unique needs of
 8    Illinois nursing home residents while  remaining  subject  to
 9    the  appropriations  provided  by  the  General  Assembly.  A
10    transition  period  from the payment methodology in effect on
11    June 30, 2003 to the payment methodology in effect on July 1,
12    2003 shall be provided for a period  not  exceeding  2  years
13    after  implementation  of  the  new  payment  methodology  as
14    follows:
15             (A)  For  a  facility  that  would  receive  a lower
16        nursing component rate per  patient  day  under  the  new
17        system  than  the facility received effective on the date
18        immediately  preceding  the  date  that  the   Department
19        implements  the  new  payment  methodology,  the  nursing
20        component  rate per patient day for the facility shall be
21        held at the level  in  effect  on  the  date  immediately
22        preceding the date that the Department implements the new
23        payment methodology until a higher nursing component rate
24        of reimbursement is achieved by that facility.
25             (B)  For  a  facility  that  would  receive a higher
26        nursing component rate per patient day under the  payment
27        methodology  in  effect on July 1, 2003 than the facility
28        received effective on the date immediately preceding  the
29        date  that  the  Department  implements  the  new payment
30        methodology, the nursing component rate per  patient  day
31        for the facility shall be adjusted.
32             (C)  Notwithstanding  paragraphs  (A)  and  (B), the
33        nursing component rate per patient day for  the  facility
34        shall  be  adjusted subject to appropriations provided by
 
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 1        the General Assembly.
 2        For facilities  licensed  by  the  Department  of  Public
 3    Health  under  the Nursing Home Care Act as Intermediate Care
 4    for the Developmentally Disabled facilities or Long Term Care
 5    for Under Age 22 facilities, the rates taking effect on March
 6    1, 2001 shall include  a  statewide  increase  of  7.85%,  as
 7    defined by the Department.
 8        For  facilities  licensed  by  the  Department  of Public
 9    Health under the Nursing Home Care Act as  Intermediate  Care
10    for the Developmentally Disabled facilities or Long Term Care
11    for Under Age 22 facilities, the rates taking effect on April
12    1,  2002  shall  include  a  statewide  increase  of 2.0%, as
13    defined by the Department. This increase terminates  on  July
14    1,  2002;  beginning  July 1, 2002 these rates are reduced to
15    the level of the rates  in  effect  on  March  31,  2002,  as
16    defined by the Department.
17        For  facilities  licensed  by  the  Department  of Public
18    Health under the Nursing Home Care  Act  as  skilled  nursing
19    facilities  or intermediate care facilities, the rates taking
20    effect on July 1, 2001  shall  be  computed  using  the  most
21    recent cost reports on file with the Department of Public Aid
22    no later than April 1, 2000, updated for inflation to January
23    1,  2001.  For rates effective July 1, 2001 only, rates shall
24    be the greater of the rate computed for July 1, 2001  or  the
25    rate effective on June 30, 2001.
26        Notwithstanding  any other provision of this Section, for
27    facilities licensed by the Department of Public Health  under
28    the  Nursing  Home  Care Act as skilled nursing facilities or
29    intermediate care facilities, the Illinois  Department  shall
30    determine  by  rule  the rates taking effect on July 1, 2002,
31    which shall be 5.9% less than the rates in effect on June 30,
32    2002.
33        Rates established effective  each  July  1  shall  govern
34    payment  for  services  rendered throughout that fiscal year,
 
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 1    except that rates  established  on  July  1,  1996  shall  be
 2    increased  by  6.8% for services provided on or after January
 3    1, 1997.  Such rates will be based upon the rates  calculated
 4    for the year beginning July 1, 1990, and for subsequent years
 5    thereafter until June 30, 2001 shall be based on the facility
 6    cost reports for the facility fiscal year ending at any point
 7    in  time  during  the  previous calendar year, updated to the
 8    midpoint of the rate year.  The cost report shall be on  file
 9    with the Department no later than April 1 of the current rate
10    year.   Should the cost report not be on file by April 1, the
11    Department shall base the rate  on  the  latest  cost  report
12    filed  by  each  skilled  care facility and intermediate care
13    facility, updated to the midpoint of the current  rate  year.
14    In  determining rates for services rendered on and after July
15    1, 1985, fixed time shall not be computed at less than  zero.
16    The  Department shall not make any alterations of regulations
17    which would reduce any component of the Medicaid  rate  to  a
18    level  below what that component would have been utilizing in
19    the rate effective on July 1, 1984.
20        (2)  Shall take into account the actual costs incurred by
21    facilities in providing services for  recipients  of  skilled
22    nursing  and  intermediate  care  services  under the medical
23    assistance program.
24        (3)  Shall   take   into   account   the   medical    and
25    psycho-social characteristics and needs of the patients.
26        (4)  Shall take into account the actual costs incurred by
27    facilities  in  meeting licensing and certification standards
28    imposed and prescribed by the State of Illinois, any  of  its
29    political  subdivisions  or  municipalities  and  by the U.S.
30    Department of Health and Human Services pursuant to Title XIX
31    of the Social Security Act.
32        The  Department  of  Public  Aid  shall  develop  precise
33    standards for payments to reimburse  nursing  facilities  for
34    any  utilization  of appropriate rehabilitative personnel for
 
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 1    the provision of rehabilitative services which is  authorized
 2    by  federal regulations, including reimbursement for services
 3    provided by qualified therapists or qualified assistants, and
 4    which is in accordance with accepted professional  practices.
 5    Reimbursement  also  may  be  made  for  utilization of other
 6    supportive personnel under appropriate supervision.
 7    (Source: P.A.  92-10,  eff.  6-11-01;  92-31,  eff.  6-28-01;
 8    92-597,  eff.  6-28-02;  92-651,  eff.  7-11-02; 92-848, eff.
 9    1-1-03; 93-20, eff. 6-20-03.)

10        Section 99.  Effective date.  This Act takes effect  upon
11    becoming law.