H-3645.1  _______________________________________________

                          HOUSE BILL 2804

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Lisk, Cody, Skinner, Conway, Campbell, Darneille, Linville, Schual‑Berke, Benson, Edwards, Clements, McMorris and Casada

Read first time 01/29/2002.  Referred to Committee on Appropriations.

Requiring the department of social and health services to review cost adjustments to calculate median costs for the nursing facility medicaid payment system.

    AN ACT Relating to the calculation of median costs for peer groups under the nursing facility medicaid payment system; and adding a new section to chapter 74.46 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 74.46 RCW to read as follows:

    Median costs for peer groups must be calculated initially as provided in this chapter on the basis of the most recent adjusted cost information used to set the current rates regardless of whether the adjustments are contested or subject to pending administrative or judicial review.  On a quarterly basis, the department will review the outcome of contested adjustments.  If the department finds that, since the most recent adjustment of the medians, more than one million dollars has been awarded to providers as the result of contested adjustments, the department will recalculate the median costs for each peer group and apply the recalculated medians retroactively to the prior July 1 rate.

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