H-3332.1  _______________________________________________

                          HOUSE BILL 2791

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Darneille, Skinner, Edwards, Campbell, Clements, Morell and Woods

Read first time 01/28/2002.  Referred to Committee on Appropriations.

Establishing the long-term care quality fund.

    AN ACT Relating to establishing a long-term care quality fund; adding a new section to chapter 74.39A RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  (1) The legislature finds that the state is aggressively pursuing nursing home proshare revenue from the federal government that is based upon the state's supplemental payments to nursing homes operated by rural public hospital districts.  Supplemental payment amounts are determined by a calculation that involves aggregating medicaid payments to all nursing homes.  Over ninety-five percent of the supplemental payment amounts have been directly attributable to medicaid payment data for privately owned nursing homes.  The state has contractually required participating rural public hospital districts to return to the state treasurer in the form of intergovernmental transfer an amount equal to at least ninety-eight percent of the supplemental payments.  Thus no more than two percent of the supplemental payments can be retained by rural public hospital district nursing homes for long-term care spending, and none of the federal proshare revenue generated through these supplemental payments has been spent directly on the state's long-term care needs.

    (2) It is the intent of the legislature that a significant share of federal proshare medicaid reimbursement received by the state should be dedicated to improving the adequacy of state medicaid payments for long-term care and the quality of life for all of the state's clients receiving long-term care services.

    (3) It is the further intent of the legislature that existing state funding for long-term care, including all sources of such funding, will not be reduced, supplanted, or otherwise adversely impacted by appropriations from the long-term care quality fund.

NEW SECTION. Sec. 2.  A new section is added to chapter 74.39A RCW to read as follows:

    (1) The long-term care quality fund is established in the state treasury.  During each fiscal year, the state treasurer shall deposit in the long-term care quality account half of all proshare reimbursement received from the federal government based upon state supplemental payments to nursing homes operated by rural public hospital districts.

    (2) The legislature may appropriate moneys from the long-term care quality fund only to enhance payments to those contracting with the state to provide long-term care under this chapter and chapter 74.46 RCW.

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