Effective Date of Rule: July 1, 2006.

     Purpose: To implement: (1) Chapter 372, Laws of 2006 (ESSB 6386) the vendor rate increase (VRI) for Medicaid rates that are used to pay adult family homes (AFH) and boarding homes with assisted living (AL), adult residential care (ADR) and enhanced adult residential care (EARC) contracts; (2) the VRI for the bed hold rate for the eighth to twentieth day; and (3) chapter 260, Laws of 2006 (ESHB 2925) by amending and deleting sections of WAC 388-105-0035 Requirements for a capital add-on rate for licensed boarding homes contracted to provide assisted living (AL) services.

     Citation of Existing Rules Affected by this Order: Amending WAC 388-105-0005, 388-105-0035, and 388-105-0045.

     Statutory Authority for Adoption: Chapter 74.39A RCW.

     Other Authority: Chapter 372, Laws of 2006; chapter 260, Laws of 2006.

     Under RCW 34.05.350 the agency for good cause finds that state or federal law or federal rule or a federal deadline for state receipt of federal funds requires immediate adoption of a rule.

     Reasons for this Finding: These rules are needed to implement the legislature's intent in ESSB 6386, section 206, subsection (21) and (22) that makes the VRI effective July 1, 2006, and ESHB 2925 about the capital rate add-on that has an effective date of July 1, 2006.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 3, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 3, Repealed 0.

     Date Adopted: June 13, 2006.

Andy Fernando, Manager

Rules and Policies Assistance Unit

COMMUNITY RESIDENTIAL DAILY RATES FOR CLIENTS ASSESSED USING CARE
		KING COUNTY
				ARC	EARC	AFH
CARE CLASSIFICATION		AL Without Capital Add-on	AL With Capital Add-on
A Low (1)		$((64.02)) 65.30	$((69.03)) 70.41	$((45.27)) 46.18	$((45.27)) 46.18	$((45.90)) 46.82
A Med (2)		$((69.32)) 70.71	$((74.33)) 75.82	$((51.37)) 52.40	$((51.37)) 52.40	$((52.09)) 53.13
A High (3)		$((77.78)) 79.34	$((82.78)) 84.45	$((65.61)) 66.92	$((65.61)) 66.92	$((58.28)) 59.45
B Low (4)		$((64.02)) 65.30	$((69.03)) 70.41	$((45.27)) 46.18	$((45.27)) 46.18	$((45.90)) 46.82
B Med (5)		$((71.44)) 72.87	$((76.45)) 77.98	$((57.47)) 58.62	$((57.47)) 58.62	$((58.28)) 59.45
B High (6)		$((85.18)) 86.88	$((90.19)) 91.99	$((73.75)) 75.23	$((73.75)) 75.23	$((66.52)) 67.85
C Low (7)		$((69.32)) 70.71	$((74.33)) 75.82	$((51.37)) 52.40	$((51.37)) 52.40	$((52.09)) 53.13
C Med (8)		$((77.78)) 79.34	$((82.78)) 84.45	$((65.61)) 66.92	$((65.61)) 66.92	$((66.52)) 67.85
C High (9)		$((96.83)) 98.77	$((101.84)) 103.88	$((85.96)) 87.68	$((85.96)) 87.68	$((87.15)) 88.89
D Low (10)		$((71.44)) 72.87	$((76.45)) 77.98	$((57.47)) 58.62	$((57.47)) 58.62	$((66.52)) 67.85
D Med (11)		$((77.78)) 79.34	$((82.78)) 84.45	$((65.61)) 66.92	$((65.61)) 66.92	$((74.78)) 76.28
D High (12)		$((96.83)) 98.77	$((101.84)) 103.88	$((85.96)) 87.68	$((85.96)) 87.68	$((87.15)) 88.89

COMMUNITY RESIDENTIAL DAILY RATES FOR CLIENTS ASSESSED USING CARE
		METROPOLITAN COUNTIES*
				ARC	EARC	AFH
CARE CLASSIFICATION		AL Without Capital Add-on	AL With Capital Add-on
A Low (1)		$((58.73)) 59.90	$((63.28)) 64.54	$((45.27)) 46.18	$((45.27)) 46.18	$((45.90)) 46.82
A Med (2)		$((61.91)) 63.15	$((66.45)) 67.79	$((49.33)) 50.32	$((49.33)) 50.32	$((50.03)) 51.03
A High (3)		$((75.67)) 77.18	$((80.22)) 81.82	$((62.56)) 63.81	$((62.56)) 63.81	$((55.18)) 56.28
B Low (4)		$((58.73)) 59.90	$((63.28)) 64.54	$((45.27)) 46.18	$((45.27)) 46.18	$((45.90)) 46.82
B Med (5)		$((67.20)) 68.54	$((71.75)) 73.18	$((54.42)) 55.51	$((54.42)) 55.51	$((55.18)) 56.28
B High (6)		$((83.07)) 84.73	$((87.62)) 89.37	$((69.69)) 71.08	$((69.69)) 71.08	$((63.43)) 64.70
C Low (7)		$((61.91)) 63.15	$((66.45)) 67.79	$((49.33)) 50.32	$((49.33)) 50.32	$((50.03)) 51.03
C Med (8)		$((75.67)) 77.18	$((80.22)) 81.82	$((62.56)) 63.81	$((62.56)) 63.81	$((63.43)) 64.70
C High (9)		$((93.65)) 95.52	$((98.20)) 100.16	$((79.85)) 81.45	$((79.85)) 81.45	$((80.97)) 82.59
D Low (10)		$((67.20)) 68.54	$((71.75)) 73.18	$((54.42)) 55.51	$((54.42)) 55.51	$((63.43)) 64.70
D Med (11)		$((75.67)) 77.18	$((80.22)) 81.82	$((62.56)) 63.81	$((62.56)) 63.81	$((70.65)) 72.06
D High (12)		$((93.65)) 95.52	$((98.20)) 100.16	$((79.85)) 81.45	$((79.85)) 81.45	$((80.97)) 82.59

*Benton, Clark, Franklin, Island, Kitsap, Pierce, Snohomish, Spokane, Thurston, Whatcom, and Yakima counties.

COMMUNITY RESIDENTIAL DAILY RATES FOR CLIENTS ASSESSED USING CARE
		NON-METROPOLITAN COUNTIES**
				ARC	EARC	AFH
CARE CLASSIFICATION		AL Without Capital Add-on	AL With Capital Add-on
A Low (1)		$((57.68)) 58.83	$((62.52)) 63.77	$((45.27)) 46.18	$((45.27)) 46.18	$((45.90)) 46.82
A Med (2)		$((61.91)) 63.15	$((66.75)) 68.09	$((48.32)) 49.29	$((48.32)) 49.29	$((49.00)) 49.98
A High (3)		$((75.67)) 77.18	$((80.51)) 82.12	$((61.55)) 62.78	$((61.55)) 62.78	$((54.15)) 55.24
B Low (4)		$((57.68)) 58.83	$((62.52)) 63.77	$((45.27)) 46.18	$((45.27)) 46.18	$((45.90)) 46.82
B Med (5)		$((67.20)) 68.54	$((72.04)) 73.48	$((53.41)) 54.48	$((53.41)) 54.48	$((54.16)) 55.24
B High (6)		$((83.07)) 84.73	$((87.91)) 89.67	$((67.65)) 69.00	$((67.65)) 69.00	$((62.41)) 63.66
C Low (7)		$((61.91)) 63.15	$((66.75)) 68.09	$((48.32)) 49.29	$((48.32)) 49.29	$((49.00)) 49.98
C Med (8)		$((75.67)) 77.18	$((80.51)) 82.12	$((61.55)) 62.78	$((61.55)) 62.78	$((62.41)) 63.66
C High (9)		$((93.65)) 95.52	$((98.49)) 100.46	$((76.80)) 78.34	$((76.80)) 78.34	$((77.88)) 79.44
D Low (10)		$((67.20)) 68.54	$((72.04)) 73.48	$((53.41)) 54.48	$((53.41)) 54.48	$((62.41)) 63.66
D Med (11)		$((75.67)) 77.18	$((80.51)) 82.12	$((61.55)) 62.78	$((61.55)) 62.78	$((68.59)) 69.96
D High (12)		$((93.65)) 95.52	$((98.49)) 100.46	$((76.80)) 78.34	$((76.80)) 78.34	$((77.88)) 79.44

** Non-Metropolitan Counties: Adams, Asotin, Chelan, Clallam, Columbia, Cowlitz, Douglas, Ferry, Garfield, Grant, Grays Harbor, Jefferson, Kittitas, Klickitat, Lewis, Lincoln, Mason, Okanogan, Pacific, Pend Orielle, San Juan, Skagit, Skamania, Stevens, Wahkiakum, Walla Walla and Whitman.

[Statutory Authority: Chapter 74.39A RCW. 06-07-013, § 388-105-0005, filed 3/3/06, effective 4/3/06. Statutory Authority: RCW 74.39A.030, 2003 c 231. 04-09-092, § 388-105-0005, filed 4/20/04, effective 5/21/04. Statutory Authority: 2002 c 371. 02-22-058, § 388-105-0005, filed 10/31/02, effective 12/1/02. Statutory Authority: 2001 c 7 § 206. 01-21-077, § 388-105-0005, filed 10/18/01, effective 11/18/01. Statutory Authority: Chapter 74.39A RCW. 01-14-056, § 388-105-0005, filed 6/29/01, effective 7/30/01.]

     (2) The department will determine an AL contractor's Medicaid occupancy percentage by dividing its Medicaid resident days from the last six months of the calendar year preceding the applicable July 1 effective date by the product of all its licensed boarding home beds irrespective of use times the calendar days for the same six-month period ((beginning one year prior to the percentage effective date)).

     (3)(((a) To set the biyearly Medicaid minimum occupancy percentage, the department will:

     (i) Determine the estimated total budgeted funds for capital add-on rates for the six-month period;

     (ii) Rank from highest to lowest the individual AL contractor occupancy percentages determined in accordance with subsection (2) of this section;

     (iii) Assign, beginning with the highest AL contractor's Medicaid occupancy percentage, the estimated expenditure needed to pay the capital add-on rate to each facility for the six-month period;

     (iv) Identify the AL contractor's Medicaid occupancy percentage at which the estimated total budgeted funds determined under subsection (3)(a)(i) of this section would be expended; and

     (v) Set that Medicaid occupancy percentage as the biyearly Medicaid minimum occupancy percentage.

     (b) The biyearly Medicaid minimum occupancy percentage will be set every January 1 and July 1.

     (4) To receive a capital add-on rate, the AL contractor that meets the Medicaid minimum occupancy percentage established in accordance with subsection (2) and (3) of this section must:

     (a) Attest in writing that it has units that meet the following requirements and that it places Medicaid residents in such units, except the contractor need only place the Medicaid resident in a room with a roll-in shower when the resident's service plan and assessment details require the Medicaid resident to have a roll-in shower:

     (i) A private apartment-like unit of two hundred and twenty square feet that may include counters, closets and built-ins, but must exclude the bathroom;

     (ii) A separate private bathroom that includes a sink, toilet, and a shower or bathtub. The licensed boarding home must have a minimum of one wheelchair accessible bathroom with a roll-in shower of at least forty-eight inches by thirty inches for every two residents whose care is partially or fully funded by Medicaid;

     (iii) A lockable entry door;

     (iv) A kitchen area equipped with a refrigerator, microwave oven or stove top; a counter surface of a minimum of thirty inches wide by twenty-four inches in depth, a maximum height of thirty-four inches, and a knee space beneath at least twenty-seven inches in height; a storage space for utensils and supplies; and

     (v) A living area wired for telephone and television service when available in the geographic location; or

     (b) When the Al contractor does not have units that meet the requirements of subsection (4)(a) of this section, then the AL contractor may receive a capital add-on rate when its AL facility meets the definition of "new boarding home" in WAC 388-110-140 (2)(a) or its AL facility is "grandfathered" under WAC 388-110-140(3))) For the purposes of this section, Medicaid resident days include those clients enrolled in medicaid managed long-term care programs, including but not limited to the program for all inclusive care (PACE) and medicaid/medicare integration project (MMIP).

[Statutory Authority: Chapter 74.39A RCW. 06-07-012, § 388-105-0035, filed 3/3/06, effective 4/3/06. Statutory Authority: 2002 c 371. 02-22-058, § 388-105-0035, filed 10/31/02, effective 12/1/02.]

     (a) Short-term care is needed in a nursing home or hospital;

     (b) The resident is likely to return to the AFH, ARC, EARC, or AL; and

     (c) Payment is made under subsection (3) of this section.

     (2)(a) When the department pays the contractor to hold the Medicaid resident's bed or unit during the resident's short-term nursing home or hospital stay, the contractor must hold the unit or bed for up to twenty days.

     (b) A Medicaid resident's discharge from an AFH, ARC, EARC, or an AL facility for a short term stay in a nursing home or hospital must be longer than twenty-four hours before subsection (3) of WAC 388-105-0045 applies.

     (3) The department will compensate the contractor for holding the bed or unit for the:

     (a) First through seventh day at seventy percent of the medicaid daily rate paid for care of the resident before the hospital or nursing home stay; and

     (b) Eighth through the twentieth day, at ((ten)) eleven dollars ((and seventy-eight cents)) a day.

     (4) The AFH, ARC, EARC, or AL facility may seek third-party payment to hold a bed or unit for twenty-one days or longer. The third-party payment shall not exceed the Medicaid daily rate paid to the facility for the resident. If third-party payment is not available and the returning Medicaid resident continues to meet the admission criteria under chapter 388-71 and/or 388-106 WAC, then the Medicaid resident may return to the first available and appropriate bed or unit.

     (5) The department's social worker or case manager determines whether the:

     (a) Stay in a nursing home or hospital will be short-term; and

     (b) Resident is likely to return to the AFH, ARC, EARC, or AL facility.

     (6) When the resident's stay in the hospital or nursing home exceeds twenty days or the department's social worker or case manager determines that the Medicaid resident's stay in the nursing home or hospital is not short-term and the resident is unlikely to return to the AFH, ARC, EARC, or AL facility, then only subsection (4) of this section applies to any private contractual arrangements that the contractor may make with a third party in regard to the discharged resident's unit or bed.

[Statutory Authority: Chapter 74.39A RCW. 06-07-013, § 388-105-0045, filed 3/3/06, effective 4/3/06. Statutory Authority: RCW 74.39A.030, 2003 c 231. 04-09-092, § 388-105-0045, filed 4/20/04, effective 5/21/04.]

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