BILL REQ. #:  S-3616.1 

Read first time 01/21/2004.   Referred to Committee on Health & Long-Term Care.

     AN ACT Relating to preserving nursing home funding; adding a new section to chapter 74.46 RCW; providing an expiration date; and declaring an emergency.

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:
     (1) To the extent of available funding within the biennial appropriations act, the department shall make supplemental payments to nursing facilities. The payments shall be supplemental to the component rate allocations calculated in accordance with part E of this chapter, and neither the provisions of part C of this chapter nor the provisions of part E of this chapter shall apply to these supplemental payments, except that RCW 74.46.421(4) (a) and (b) shall apply.
     (a) The department shall, effective July 1, 2003, and through June 30, 2004, make a retroactive supplemental payment to nursing facilities to reimburse the full difference between the medicaid proportionate share of the reported property and liability insurance costs for cost reports filed for 1999, and the medicaid proportionate share of the reported property and liability insurance costs for cost reports filed for 2002.
     (b) For the time period beginning January 1, 2004, through June 30, 2005, the department shall make supplemental payments to nursing facilities that reimburse the full difference between the medicaid proportionate share of the workers' compensation insurance premiums as reported in the 1999 cost reports, and the medicaid proportionate share of the workers' compensation insurance premiums for the 2004 year. The medicaid proportionate share of the 2004 workers' compensation insurance premiums, assessed by the department of labor and industries under chapter 51.16 RCW, shall be determined by using the most current medicaid occupancy data available to the department of social and health services and multiplying the composite base rate premium cost for 2004 for nursing homes as a risk class by employee hours data available from the department of labor and industries.
     (c) By May 1, 2004, after determining the supplemental payment amounts under (a) and (b) of this subsection, the department shall make a reasonable estimate as to what appropriated funds would go unspent toward the weighted average nursing facility payment rates authorized under the biennial appropriations act for fiscal year 2004, and distribute, through a rate adjustment effective July 1, 2003, those remaining funds as an economic trends and conditions factor for the direct care, therapy care, support services, and operations component rates.
     (d) Beginning on July 1, 2004, the department shall make supplemental payments to nursing facilities that reimburse the full difference between the medicaid proportionate share of costs for property and liability insurance for cost reports filed as of 1999 and the medicaid proportionate share of costs for property and liability insurance for cost reports filed for 2003.
     (e) By November 1, 2004, after payments under (b) and (d) of this subsection, the department shall make a reasonable estimate as to what appropriated funds would go unspent toward the weighted average nursing facility payment rates authorized under the biennial appropriations act for fiscal year 2005, and distribute, through a rate adjustment effective July 1, 2004, those remaining funds as an economic trends and conditions factor for the direct care, therapy care, support services, and operations component rates.
     (2) This section expires June 30, 2005.

NEW SECTION.  Sec. 2   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.