BILL REQ. #:  H-1365.1 

Read first time 02/02/2007.   Referred to Committee on Appropriations.

     AN ACT Relating to payments for medicaid contracted services in boarding homes; adding a new section to chapter 18.20 RCW; providing an effective 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 18.20 RCW to read as follows:
     (1) Beginning on July 1, 2007, the rates of payment for boarding home medicaid contracted services under chapter 74.39A RCW shall be established by the department using the "home and community rates model," developed by the department and published on November 22, 2006. The "home and community rates model" shall be updated using the 2005 nursing home cost report data to estimate the cost of care for assisted living services, enhanced adult residential care services, and adult residential care services. The payment rates established under this subsection shall be adjusted by:
     (a) Acuity classification groups and geographic areas in accordance with the "home and community rates model"; and
     (b) An economic trends and conditions factor which shall be the lower of a factor determined by the percentage change in the consumer price index for all urban consumers from the actual index of the quarter ending June 30th, from the year two years immediately preceding the rate period to the forecasted index of the quarter ending June 30th, immediately preceding the rate period from the data provided by the bureau of labor statistics, titled the consumer price index for all urban consumers, as is published for the quarter ending June 30th, one year immediately preceding the rate period, or six percent; so that: For the rate period commencing July 1, 2007, the adjustment for economic trends and conditions is the lower of the calculated percentage change of the actual index from the quarter ending June 30, 2005, compared to the forecasted index for the quarter ending June 30, 2007, or six percent.
     (2) Beginning July 1, 2008, and for all assisted living services, enhanced adult residential care services, and adult residential care rates established on each subsequent July 1st occurring in even-numbered years, the June 30th rate shall be adjusted by a factor determined by the percentage change in the consumer price index for all urban consumers from the actual index of the quarter ending June 30th, from the year two years immediately preceding the rate period to the forecasted index of the quarter ending June 30th, from the year one year immediately preceding the rate period from the data provided by the bureau of labor statistics, titled the consumer price index for all urban consumers, as is published for the quarter ending June 30th, in the year two years immediately preceding the rate period; so that: For the rate period commencing July 2008, the adjustment for economic trends and conditions is the calculated percentage change of the actual index from the quarter ending June 30, 2006, compared to the forecasted index for the quarter ending June 30, 2007; and so forth.
     (3) Beginning July 1, 2009, and for all assisted living services, enhanced adult residential care services, and adult residential care rates established on each subsequent July 1st occurring in odd-numbered years, the June 30th rate in each year shall be adjusted by a factor determined by the percentage change in the consumer price index for all urban consumers from the actual index of the quarter ending June 30th, from the year two years immediately preceding the rate period to the actual index of the quarter ending June 30th, from the year one year immediately preceding the rate period from the data provided by the bureau of labor statistics, titled the consumer price index for all urban consumers, as is published for the quarter ending June 30th, in the year one year immediately preceding the rate period; so that: For the rate period commencing July 2009, the adjustment for economic trends and conditions is the calculated percentage change of the actual index from the quarter ending June 30, 2007, compared to the actual index for the quarter ending June 30, 2008; and so forth.

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 July 1, 2007.