WSR 10-11-109



(Aging and Disability Services Administration)

[ Filed May 18, 2010, 1:41 p.m. ]

Subject of Possible Rule Making: Chapter 388-96 WAC, Nursing facility medicaid payment system.

Statutes Authorizing the Agency to Adopt Rules on this Subject: ESSB 6872 and 6444; chapter 74.46 RCW.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: The legislature in ESSB 6872 simplified chapter 74.46 RCW by repealing numerous section[s] and granting the department the authority to incorporate the detail of the repealed sections in chapter 388-96 WAC. To identify the subjects of the rule making view ESSB 6872 at Passed Legislature/

The amendments or adoptions to chapter 388-96 WAC to implement ESSB 6872 include but are not limited to the following (1) the effect of bed banking on rates; (2)financing allowance component rate allocation minimum facility occupancy of licensed beds, regardless of how many beds are set up or in use at eighty-five percent for essential community providers, ninety percent for small nonessential community providers, and at ninety-two percent for large nonessential community providers; (3) to increase the categories for exceptional care rates; and (4) adopt new rules for pay-for performance supplemental rates.

The department will amend or adopt new rules to implement ESSB 6444 section 206 that include but are not limited to the following: (1) WAC 388-96-766(3) to implement no rate add-ons to nursing facility Medicaid payment rates for capital improvements not requiring a certificate of need and a certificate of capital authorization for fiscal year 2011; and (2) WAC 388-96-211 to define a settlement process covering two periods[,] January 1, 2009, through June 30, 2009, and July 1, 2009, through December 31, 2009. For the second period beginning July 1, 2009, the department may partially or totally waive settlements only in specific cases where a nursing home can demonstrate significant decreases in costs from the first period.

By publishing this CR-101, the department begins the permanent rule-adoption process. Since the permanent rule-adoption process will take longer than July 1, 2010, the department will adopt any of the rules that must be in effect July 1, 2010, by emergency.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Aging and disability services (ADSA) welcomes the public to take part in developing the rules. Anyone interested should contact the staff person identified below. At a later date, ADSA will file proposed rules with the office of the code reviser with a notice of proposed rule making. A copy of the proposal will be sent to everyone on the mailing list and to anyone who responds to this CR-101.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Patricia Hague, P.O. Box 45600, Mailstop 45600, Olympia, WA 98504-5600, phone (360) 725-2447, fax (360) 725-2641, e-mail

May 18, 2010

Katherine I. Vasquez

Rules Coordinator

Washington State Code Reviser's Office