SENATE BILL REPORT

SB 6311

BYSenators West, Kreidler, Warnke, Moore and Rasmussen; by request of Department of Social and Health Services

Regulating patient trust funds.

Senate Committee on Health & Long-Term Care

Senate Hearing Date(s):January 30, 1990

Senate Staff:Greg Miller (786-7784)

AS OF JANUARY 29, 1990

BACKGROUND:

Chapter 74.46 RCW is not in accord with federal requirements in the Omnibus Budget Reconciliation Act of 1967 (OBRA) for financial reporting and nursing home designation.

SUMMARY:

Forbids requirements that residents deposit personal funds with the facility.  Requires that any personal funds in excess of $50 be deposited in an interest-bearing trust account separate from the facility's operating accounts, and that quarterly reporting to residents include all interest accruing to the individual's trust account.  Requires proof to DSHS of purchase and maintenance of a surety bond or other assurance of security of patients' funds.  Requires the facility to notify the resident that DSHS will reevaluate medicaid eligibility when the facility notifies the department that an account has reached the maximum limit under regulations.  Forbids imposition of charges against a trust account for any item or service for which payment is made by medicaid. Requires maintenance of petty cash funds or non-interest-bearing accounts for resident funds of less than $50.

Changes terminology from "skilled nursing" and "intermediate care" facilities to "nursing facility."

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Effective Date:October 1, 1990