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Senate File 2193

Partial Bill History

Bill Text

PAG LIN
  1  1                                           SENATE FILE 2193
  1  2 
  1  3                             AN ACT
  1  4 RELATING TO THE ESTABLISHMENT OF A SENIOR LIVING PROGRAM,
  1  5    INCLUDING THE CREATION OF A SENIOR LIVING TRUST FUND,
  1  6    PROVIDING FOR THE DEVELOPMENT AND PROVISION OF SENIOR 
  1  7    LIVING PROGRAM INFORMATION AND ELECTRONIC ACCESS, 
  1  8    PROVIDING FOR A CAREGIVER SUPPORT AND EDUCATION PROGRAM,
  1  9    PROVIDING FOR A SENIOR LIVING INSURANCE POLICY AND 
  1 10    INCENTIVES STUDY, PROVIDING FOR ALLOCATION OF THE MONEYS 
  1 11    IN THE SENIOR LIVING TRUST FUND, MAKING APPROPRIATIONS, 
  1 12    AND PROVIDING AN EFFECTIVE DATE, AND PROVIDING FOR 
  1 13    RETROACTIVE APPLICABILITY.
  1 14 
  1 15 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  1 16 
  1 17                           DIVISION I
  1 18                       TITLE AND FINDINGS
  1 19    Section 1.  NEW SECTION.  249H.1  TITLE.
  1 20    This chapter shall be known and may be cited as the "Iowa
  1 21 Senior Living Program Act".
  1 22    Sec. 2.  NEW SECTION.  249H.2  LEGISLATIVE FINDINGS –
  1 23 GOAL.
  1 24    1.  The general assembly finds that:
  1 25    a.  The preservation, improvement, and coordination of the
  1 26 health care infrastructure of Iowa is critical to the health
  1 27 and safety of Iowans.
  1 28    b.  An increasing number of seniors and persons with
  1 29 disabilities in the state require long-term care services
  1 30 provided outside of a medical institution.
  1 31    c.  A full array of long-term care services is necessary to
  1 32 provide cost-effective and appropriate services to the varied
  1 33 population of health care consumers.
  1 34    d.  The supported development of long-term care
  1 35 alternatives, including assisted-living facility services,
  2  1 adult day care, and home and community-based services, is
  2  2 critical in areas of the state where such alternatives
  2  3 otherwise are not likely to be developed.
  2  4    e.  Cost containment in the delivery of health care is
  2  5 necessary to improve services and access for all Iowans.
  2  6    f.  Grants are necessary to cover the expenditures related
  2  7 to the development of alternative health care services.
  2  8 Development of these alternatives will improve access to and
  2  9 delivery of long-term care services to underserved individuals
  2 10 or in underserved areas, which will in turn contain or reduce
  2 11 the cost and improve the quality of health care services.
  2 12    g.  A continuing source of funding is necessary to enhance
  2 13 the state's ability to meet the rising demand of seniors with
  2 14 low and moderate incomes in obtaining an appropriate variety
  2 15 of long-term care services.
  2 16    2.  The goal of this program is to create a comprehensive
  2 17 long-term care system that is consumer-directed, provides a
  2 18 balance between the alternatives of institutionally and
  2 19 noninstitutionally provided services, and contributes to the
  2 20 quality of the lives of Iowans.  
  2 21                           DIVISION II
  2 22                   IOWA SENIOR LIVING PROGRAM
  2 23    Sec. 3.  NEW SECTION.  249H.3  DEFINITIONS.
  2 24    As used in this chapter, unless the context otherwise
  2 25 provides:
  2 26    1.  "Affordable" means rates for payment of services which
  2 27 do not exceed the rates established for providers of medical
  2 28 and health services under the medical assistance program with
  2 29 eligibility for an individual equal to the eligibility for
  2 30 medical assistance pursuant to section 249A.3.  In relation to
  2 31 services provided by a provider of services under a home and
  2 32 community-based waiver, "affordable" means that the total
  2 33 monthly cost of the home and community-based waiver services
  2 34 provided do not exceed the cost for that level of care as
  2 35 established by rule by the department of human services,
  3  1 pursuant to chapter 17A, in consultation with the department
  3  2 of elder affairs.
  3  3    2.  "Assisted living" means assisted living as defined in
  3  4 section 231C.2.
  3  5    3.  "Case mix reimbursement" means a reimbursement
  3  6 methodology that recognizes the acuity and need level of the
  3  7 residents of a nursing facility.
  3  8    4.  "Long-term care alternatives" means those services
  3  9 specified under the medical assistance program as home and
  3 10 community-based waiver services for elder persons or adults
  3 11 with disabilities, elder group homes certified under chapter
  3 12 231B, assisted-living programs certified under chapter 231C,
  3 13 and the PACE program.
  3 14    5.  "Long-term care provider" means a provider of services
  3 15 through long-term care alternatives.
  3 16    6.  "Long-term care service development" means any of the
  3 17 following:
  3 18    a.  The remodeling of existing space and, if necessary, the
  3 19 construction of additional space required to accommodate
  3 20 development of long-term care alternatives, excluding the
  3 21 development of assisted-living programs or elder group home
  3 22 alternatives.
  3 23    b.  New construction for long-term care alternatives,
  3 24 excluding new construction of assisted-living programs or
  3 25 elder group homes, if the senior living coordinating unit
  3 26 determines that new construction is more cost-effective than
  3 27 the conversion of existing space.
  3 28    7.  "Nursing facility" means a licensed nursing facility as
  3 29 defined in section 135C.1 or a licensed hospital as defined in
  3 30 section 135B.1, a distinct part of which provides long-term
  3 31 care nursing facility beds.
  3 32    8.  "Nursing facility conversion" means any of the
  3 33 following:
  3 34    a.  The remodeling of nursing facility space existing on
  3 35 July 1, 1999, and certified for medical assistance nursing
  4  1 facility reimbursement and, if necessary, the construction of
  4  2 additional space required to accommodate an assisted-living
  4  3 program.
  4  4    b.  New construction of an assisted-living program if
  4  5 existing nursing facility beds are no longer licensed and the
  4  6 senior living coordinating unit determines that new
  4  7 construction is more cost-effective than the conversion of
  4  8 existing space.
  4  9    9.  "PACE program" means a program of all-inclusive care
  4 10 for the elderly established pursuant to 42 U.S.C. } 1396(u)(4)
  4 11 that provides delivery of comprehensive health and social
  4 12 services to seniors by integrating acute and long-term care
  4 13 services, and that is operated by a public, private,
  4 14 nonprofit, or proprietary entity.  "Pre-PACE program" means a
  4 15 PACE program in the initial start-up phase that provides the
  4 16 same scope of services as a PACE program.
  4 17    10.  "Persons with disabilities" means individuals eighteen
  4 18 years of age or older with disabilities as disability is
  4 19 defined in section 225B.2.
  4 20    11.  "Senior" means elder as defined in section 231.4 and
  4 21 as defined under the PACE program pursuant to 42 U.S.C. }
  4 22 1396(u)(4).
  4 23    12.  "Senior living coordinating unit" means the senior
  4 24 living coordinating unit created within the department of
  4 25 elder affairs pursuant to section 231.58, or its designee.
  4 26    13.  "Senior living program" means the senior living
  4 27 program created in this chapter to provide for long-term care
  4 28 alternatives, long-term care service development, and nursing
  4 29 facility conversion.
  4 30    Sec. 4.  NEW SECTION.  249H.4  SENIOR LIVING TRUST FUND –
  4 31 CREATED – APPROPRIATIONS.
  4 32    1.  A senior living trust fund is created in the state
  4 33 treasury under the authority of the department of human
  4 34 services.  Moneys received through intergovernmental
  4 35 agreements for the senior living program and moneys received
  5  1 from sources, including grants, contributions, and participant
  5  2 payments, shall be deposited in the fund.
  5  3    2.  The department of human services, upon receipt of
  5  4 federal revenue on or after October 1, 1999, from public
  5  5 nursing facilities participating in the medical assistance
  5  6 program, shall deposit the federal revenue received in the
  5  7 trust fund, less a sum of five thousand dollars as an
  5  8 administration fee per participating public nursing facility.
  5  9    3.  Moneys deposited in the trust fund shall be used only
  5 10 for the purposes of the senior living program as specified in
  5 11 this chapter.
  5 12    4.  The trust fund shall be operated in accordance with the
  5 13 guidelines of the health care financing administration of the
  5 14 United States department of health and human services.  The
  5 15 trust fund shall be separate from the general fund of the
  5 16 state and shall not be considered part of the general fund of
  5 17 the state.  The moneys in the trust fund shall not be
  5 18 considered revenue of the state, but rather shall be funds of
  5 19 the senior living program.  The moneys in the trust fund are
  5 20 not subject to section 8.33 and shall not be transferred,
  5 21 used, obligated, appropriated, or otherwise encumbered, except
  5 22 to provide for the purposes of this chapter.  Notwithstanding
  5 23 section 12C.7, subsection 2, interest or earnings on moneys
  5 24 deposited in the trust fund shall be credited to the trust
  5 25 fund.
  5 26    5.  The department of human services shall adopt rules
  5 27 pursuant to chapter 17A to administer the trust fund and to
  5 28 establish procedures for participation by public nursing
  5 29 facilities in the intergovernmental transfer of funds to the
  5 30 senior living trust fund.
  5 31    6.  The treasurer of state shall provide a quarterly report
  5 32 of trust fund activities and balances to the senior living
  5 33 coordinating unit.
  5 34    Sec. 5.  NEW SECTION.  249H.5  ALLOCATIONS – SENIOR LIVING
  5 35 TRUST FUND.
  6  1    1.  Moneys deposited in the senior living trust fund
  6  2 created in section 249H.4 shall be used only as provided in
  6  3 appropriations from the trust fund to the department of human
  6  4 services and the department of elder affairs, and for
  6  5 purposes, including the awarding of grants, as specified in
  6  6 this chapter.
  6  7    2.  Moneys in the trust fund are allocated, subject to
  6  8 their appropriation by the general assembly, as follows:
  6  9    a.  To the department of human services, a maximum of
  6 10 eighty million dollars for the fiscal period beginning July 1,
  6 11 2000, and ending on or before June 30, 2005, to be used for
  6 12 the conversion of existing nursing facility space and
  6 13 development of long-term care alternatives.
  6 14    b.  To the department of elder affairs, an amount
  6 15 necessary, annually, for expenses incurred in implementation
  6 16 and administration of the long-term care alternatives programs
  6 17 and for delivery of long-term care services to seniors with
  6 18 low or moderate incomes.
  6 19    c.  To the department of human services, an amount
  6 20 necessary, annually, for all of the following:
  6 21    (1)  Expenses incurred in implementation of the senior
  6 22 living program.
  6 23    (2)  Expenses incurred in administration of medical
  6 24 assistance home and community-based waivers and the PACE
  6 25 program due to implementation of the senior living trust fund.
  6 26    (3)  Expenses incurred due to increased service delivery
  6 27 provided under medical assistance home and community-based
  6 28 waivers as a result of nursing facility conversions and long-
  6 29 term care service development, for the fiscal period beginning
  6 30 July 1, 2000, and ending on or before June 30, 2005.
  6 31    (4)  Expenses incurred in program administration related to
  6 32 implementation of nursing facility case mix reimbursement
  6 33 under the medical assistance program.
  6 34    d.  To the department of human services, an amount
  6 35 necessary to provide funding for nursing facility provider
  7  1 reimbursements, using the percentile-based reimbursement
  7  2 system, and to provide funding for the transition to a case-
  7  3 mix reimbursement system.  Funding shall be provided under
  7  4 this section for the percentile-based reimbursement system,
  7  5 until such time as the case-mix reimbursement system is fully
  7  6 implemented.
  7  7    e.  To the department of human services an amount
  7  8 necessary, annually, for additional expenses incurred relative
  7  9 to implementation of the senior living program in assisting
  7 10 home and community-based waiver consumers with rent expenses
  7 11 pursuant to the state supplementary assistance program.
  7 12    3.  Any funds remaining after disbursement of moneys under
  7 13 subsection 2 shall be invested with the interest earned to be
  7 14 available in subsequent fiscal years for the purposes provided
  7 15 in subsection 2, paragraph "b", and subsection 2, paragraph
  7 16 "c", subparagraphs (1) and (2).
  7 17    Sec. 6.  NEW SECTION.  249H.6  NURSING FACILITY CONVERSION
  7 18 AND LONG-TERM CARE SERVICES DEVELOPMENT GRANTS.
  7 19    1.  The department of human services, at the direction of
  7 20 the senior living coordinating unit, may use moneys
  7 21 appropriated to the department from the senior living trust
  7 22 fund to award grants to any of the following:
  7 23    a.  A licensed nursing facility that has been an approved
  7 24 provider under the medical assistance program for the three-
  7 25 year period prior to application for the grant.  The grant
  7 26 awarded may be used to convert all or a portion of the
  7 27 licensed nursing facility to a certified assisted-living
  7 28 program and may be used for capital or one-time expenditures,
  7 29 including but not limited to start-up expenses, training
  7 30 expenses, and operating losses for the first year of operation
  7 31 following conversion associated with the nursing facility
  7 32 conversion.
  7 33    b.  A long-term care provider or a licensed nursing
  7 34 facility that has been an approved provider under the medical
  7 35 assistance program for the three-year period prior to
  8  1 application for the grant or a provider that will meet
  8  2 applicable medical assistance provider requirements as
  8  3 specified in subsection 2, paragraph "c" or "d".  The grant
  8  4 awarded may be used for capital or one-time expenditures,
  8  5 including but not limited to start-up expenses, training
  8  6 expenses, and operating losses for the first year of operation
  8  7 for long-term care service development.
  8  8    2.  A grant shall be awarded only to an applicant who meets
  8  9 all of the following criteria, as applicable to the type of
  8 10 grant:
  8 11    a.  The applicant is a long-term care provider or a nursing
  8 12 facility that is located in an area determined by the senior
  8 13 living coordinating unit to be underserved with respect to a
  8 14 particular long-term care alternative service, and that has
  8 15 demonstrated the ability or potential to provide quality long-
  8 16 term care alternative services.
  8 17    b.  The applicant is able to provide a minimum matching
  8 18 contribution of twenty percent of the total cost of any
  8 19 conversion, remodeling, or construction.
  8 20    c.  The applicant is applying for a nursing facility
  8 21 conversion grant and is able to demonstrate all of the
  8 22 following:
  8 23    (1)  Conversion of the nursing facility or a distinct
  8 24 portion of the nursing facility to an assisted-living program
  8 25 is projected to offer efficient and economical care to
  8 26 individuals requiring long-term care services in the service
  8 27 area.
  8 28    (2)  Assisted-living services are otherwise not likely to
  8 29 be available in the area for individuals eligible for services
  8 30 under the medical assistance program.
  8 31    (3)  The resulting reduction in the availability of nursing
  8 32 facility services is not projected to cause undue hardship on
  8 33 those individuals requiring nursing facility services for a
  8 34 period of at least ten years.
  8 35    (4)  Public support following a community-based assessment.
  9  1    (5)  Conversion of the nursing facility is projected to
  9  2 result in a lower per client reimbursement cost to the grant
  9  3 applicant under the medical assistance program.
  9  4    d.  The applicant is applying for a long-term care service
  9  5 development grant and is able to demonstrate all of the
  9  6 following:
  9  7    (1)  Long-term care service development is projected to
  9  8 offer efficient and economical care to individuals requiring
  9  9 long-term care services in the service area.
  9 10    (2)  The proposed long-term care alternative is otherwise
  9 11 not likely to be available in the area for individuals
  9 12 eligible for services under the medical assistance program.
  9 13    (3)  Public support following a community-based assessment.
  9 14    e.  The applicant agrees to do all of the following as
  9 15 applicable to the type of grant:
  9 16    (1)  Participate and maintain a minimum medical assistance
  9 17 client base participation rate of forty percent, subject to
  9 18 the demand for participation by individuals eligible for
  9 19 medical assistance.
  9 20    (2)  Provide a service delivery package that is affordable
  9 21 for those individuals eligible for services under the medical
  9 22 assistance home and community-based services waiver program.
  9 23    (3)  Provide a refund to the senior living trust fund, on
  9 24 an amortized basis, in the amount of the grant, if the
  9 25 applicant or the applicant's successor in interest ceases to
  9 26 operate an affordable long-term care alternative within the
  9 27 first ten-year period of operation following the awarding of
  9 28 the grant or if the applicant or the applicant's successor in
  9 29 interest fails to maintain a participation rate of forty
  9 30 percent in accordance with subparagraph (1).
  9 31    3.  The department of human services shall adopt rules in
  9 32 consultation with the senior living coordinating unit,
  9 33 pursuant to chapter 17A, to provide all of the following:
  9 34    a.  An application process and eligibility criteria for the
  9 35 awarding of grants.  The eligibility criteria shall include
 10  1 but are not limited to the applicant's demonstration of an
 10  2 affordable service package, the applicant's use of the funds
 10  3 for allowable costs, and the applicant's ability to refund the
 10  4 funds if required under subsection 2, paragraph "e",
 10  5 subparagraph (3).  The primary eligibility criterion used
 10  6 shall be the applicant's potential impact on the overall goal
 10  7 of moving toward a balanced, comprehensive, affordable, high-
 10  8 quality, long-term care system.
 10  9    b.  Criteria to be utilized in determining the amount of
 10 10 the grant awarded.
 10 11    c.  Weighted criteria to be utilized in prioritizing the
 10 12 awarding of grants to individual grantees during a grant
 10 13 cycle.  Greater weight shall be given to the applicant's
 10 14 demonstration of potential reduction of nursing facility beds,
 10 15 the applicant's ability to meet demonstrated community need,
 10 16 and the established history of the applicant in providing
 10 17 quality long-term care services.
 10 18    d.  Policies and procedures for certification of the
 10 19 matching funds required of applicants under subsection 2,
 10 20 paragraph "b".
 10 21    e.  Other procedures the department of human services deems
 10 22 necessary for the proper administration of this section,
 10 23 including but not limited to the submission of progress
 10 24 reports on a bimonthly basis to the senior living coordinating
 10 25 unit.
 10 26    4.  The department of human services shall adopt rules to
 10 27 ensure that a nursing facility that receives a nursing
 10 28 facility conversion grant allocates costs in an equitable
 10 29 manner.
 10 30    5.  In addition to the types of grants described in
 10 31 subsection 1, the department of human services, at the
 10 32 direction of the senior living coordinating unit, may also use
 10 33 moneys appropriated to the department from the senior living
 10 34 trust fund to award grants, of not more than one hundred
 10 35 thousand dollars per grant, to licensed nursing facilities
 11  1 that are awarded nursing facility conversion grants and agree,
 11  2 as part of the nursing facility conversion, to also provide
 11  3 adult day care, child care for children with special needs,
 11  4 safe shelter for victims of dependent adult abuse, or respite
 11  5 care.
 11  6    6.  The department of human services shall establish a
 11  7 calendar for receiving and evaluating applications and for
 11  8 awarding of grants.
 11  9    7.  a.  The department of human services shall develop a
 11 10 cost report to be completed by a grantee which includes, but
 11 11 is not limited to, revenue, costs, loans undertaken by the
 11 12 grantee, fixed assets of the grantee, a balance sheet, and a
 11 13 profit and loss statement.
 11 14    b.  Grantees shall submit, annually, completed cost reports
 11 15 to the department of human services regarding the project for
 11 16 a period of ten years following the date of initial operation
 11 17 of the grantee's long-term care alternative.
 11 18    8.  The department of human services, in consultation with
 11 19 the department of elder affairs, shall provide annual reports
 11 20 to the governor and the general assembly concerning grants
 11 21 awarded.  The annual report shall include the total number of
 11 22 applicants and approved applicants, an overview of the various
 11 23 grants awarded, and detailed reports of the cost of each
 11 24 project funded by a grant and information submitted by the
 11 25 approved applicant.
 11 26    9.  For the purpose of this section, "underserved" means
 11 27 areas in which four and four-tenths percent of the number of
 11 28 individuals sixty-five years of age and older is not greater
 11 29 than the number of currently licensed nursing facility beds
 11 30 and certified assisted-living units.  In addition, the
 11 31 department, in determining if an area is underserved, may
 11 32 consider additional information gathered through the
 11 33 department's own research or submitted by an applicant,
 11 34 including but not limited to any of the following:
 11 35    a.  Availability of and access to long-term care
 12  1 alternatives relative to individuals eligible for medical
 12  2 assistance.
 12  3    b.  The current number of seniors and persons with
 12  4 disabilities and the projected number of these individuals.
 12  5    c.  The current number of seniors and persons with
 12  6 disabilities requiring professional nursing care and the
 12  7 projected number of these individuals.
 12  8    d.  The current availability of long-term care alternatives
 12  9 and any known changes in the availability of such
 12 10 alternatives.
 12 11    10.  This section does not create an entitlement to any
 12 12 funds available for grants under this section, and the
 12 13 department of human services may only award grants to the
 12 14 extent funds are available and within its discretion, to the
 12 15 extent applications are approved.
 12 16    11.  In addition to any other remedies provided by law, the
 12 17 department of human services may recoup any grant funding
 12 18 previously awarded and disbursed to a grantee or the grantee's
 12 19 successor in interest and may reduce the amount of any grant
 12 20 awarded, but not yet disbursed, to a grantee or the grantee's
 12 21 successor in interest, by the amount of any refund owed by a
 12 22 grantee or the grantee's successor in interest pursuant to
 12 23 subsection 2, paragraph "e", subparagraph (3).
 12 24    12.  The senior living coordinating unit shall review
 12 25 projects that receive grants under this section to ensure that
 12 26 the goal to provide alternatives to nursing facility care is
 12 27 being met and that an adequate number of nursing facility
 12 28 services remain to meet the needs of Iowans.
 12 29    Sec. 7.  NEW SECTION.  249H.7  HOME AND COMMUNITY-BASED
 12 30 SERVICES FOR SENIORS.
 12 31    1.  Beginning October 1, 2000, the department of elder
 12 32 affairs, in consultation with the senior living coordinating
 12 33 unit, shall use funds appropriated from the senior living
 12 34 trust fund for activities related to the design, maintenance,
 12 35 or expansion of home and community-based services for seniors,
 13  1 including but not limited to adult day care, personal care,
 13  2 respite, homemaker, chore, and transportation services
 13  3 designed to promote the independence of and to delay the use
 13  4 of institutional care by seniors with low and moderate
 13  5 incomes.  At any time that moneys are appropriated, the
 13  6 department of elder affairs, in consultation with the senior
 13  7 living coordinating unit, shall disburse the funds to the area
 13  8 agencies on aging.
 13  9    2.  The department of elder affairs shall adopt rules, in
 13 10 consultation with the senior living coordinating unit and the
 13 11 area agencies on aging, pursuant to chapter 17A, to provide
 13 12 all of the following:
 13 13    a.  (1)  The criteria and process for disbursement of
 13 14 funds, appropriated in accordance with subsection 1, to area
 13 15 agencies on aging.
 13 16    (2)  The criteria shall include, at a minimum, all of the
 13 17 following:
 13 18    (a)  A distribution formula that triple weights all of the
 13 19 following:
 13 20    (i)  Individuals seventy-five years of age and older.
 13 21    (ii)  Individuals aged sixty and older who are members of a
 13 22 racial minority.
 13 23    (iii)  Individuals sixty years of age and older who reside
 13 24 in rural areas as defined in the federal Older Americans Act.
 13 25    (iv)  Individuals who are sixty years of age and older who
 13 26 have incomes at or below the poverty level as defined in the
 13 27 federal Older Americans Act.
 13 28    (b)  A distribution formula that single weights individuals
 13 29 sixty years of age and older who do not meet the criteria
 13 30 specified in subparagraph subdivision (a).
 13 31    b.  The criteria for long-term care providers to receive
 13 32 funding as subcontractors of the area agencies on aging.
 13 33    c.  Other procedures the department of elder affairs deems
 13 34 necessary for the proper administration of this section,
 13 35 including but not limited to the submission of progress
 14  1 reports, on a bimonthly basis, to the senior living
 14  2 coordinating unit.
 14  3    3.  This section does not create an entitlement to any
 14  4 funds available for disbursement under this section and the
 14  5 department of elder affairs may only disburse moneys to the
 14  6 extent funds are available and, within its discretion, to the
 14  7 extent requests for funding are approved.
 14  8    4.  Long-term care providers that receive funding under
 14  9 this section shall submit annual reports to the appropriate
 14 10 area agency on aging.  The department of elder affairs shall
 14 11 develop the report to be submitted, which shall include, but
 14 12 is not limited to, units of service provided, the number of
 14 13 service recipients, costs, and the number of units of service
 14 14 identified as necessitated but not provided.
 14 15    5.  The department of elder affairs, in cooperation with
 14 16 the department of human services, shall provide annual reports
 14 17 to the governor and the general assembly concerning the impact
 14 18 of moneys disbursed under this section on the availability of
 14 19 long-term care services in Iowa.  The reports shall include
 14 20 the types of services funded, the outcome of those services,
 14 21 and the number of individuals receiving those services.
 14 22    Sec. 8.  NEW SECTION.  249H.8  PACE PROGRAM.
 14 23    For the purposes of this chapter, all of the following
 14 24 apply to a PACE program:
 14 25    1.  A person operating a PACE program shall have a PACE
 14 26 program agreement with the health care financing
 14 27 administration of the United States department of health and
 14 28 human services, shall enter a contract with the department of
 14 29 human services and shall comply with 42 U.S.C. } 1396(u)(4)
 14 30 and all regulations promulgated pursuant to that section.
 14 31    2.  Services provided under a PACE or pre-PACE program
 14 32 shall be provided on a capitated basis.
 14 33    3.  A pre-PACE program may contract with the department of
 14 34 human services to provide services to individuals eligible for
 14 35 medical assistance, on a capitated basis, for a limited scope
 15  1 of the PACE service package through a prepaid health plan
 15  2 agreement, with the remaining services reimbursed directly to
 15  3 the service providers by the medical assistance or federal
 15  4 Medicare programs.
 15  5    4.  PACE and pre-PACE programs are not subject to
 15  6 regulation under chapter 514B.
 15  7    5.  A PACE or pre-PACE program shall, at the time of
 15  8 entering into the initial contract and of renewal of a
 15  9 contract with the department of human services, demonstrate
 15 10 cash reserves in an amount established by rule of the
 15 11 department to cover expenses in the event of insolvency.
 15 12    Sec. 9.  NEW SECTION.  249H.9  SENIOR LIVING PROGRAM
 15 13 INFORMATION – ELECTRONIC ACCESS – EDUCATION – ADVISORY
 15 14 COUNCIL.
 15 15    1.  The department of elder affairs and the area agencies
 15 16 on aging, in consultation with the senior living coordinating
 15 17 unit, shall create, on a county basis, a database directory of
 15 18 all health care and support services available to seniors.
 15 19 The department of elder affairs shall make the database
 15 20 electronically available to the public, and shall update the
 15 21 database on at least a monthly basis.
 15 22    2.  The department of elder affairs shall seek foundation
 15 23 funding to develop and provide an educational program for
 15 24 individuals aged twenty-one and older which assists
 15 25 participants in planning for and financing health care
 15 26 services and other supports in their senior years.
 15 27    3.  The department of human services shall develop and
 15 28 distribute an informational packet to the public that
 15 29 explains, in layperson terms, the law, regulations, and rules
 15 30 under the medical assistance program relative to health care
 15 31 services options for seniors, including but not limited to
 15 32 those relating to transfer of assets, prepaid funeral
 15 33 expenses, and life insurance policies.
 15 34    4.  The director of human services, the director of the
 15 35 department of elder affairs, the director of public health,
 16  1 the director of the department of inspections and appeals, the
 16  2 director of revenue and finance, and the commissioner of
 16  3 insurance shall constitute a senior advisory council to
 16  4 provide oversight in the development and operation of all
 16  5 informational aspects of the senior living program under this
 16  6 section.
 16  7    Sec. 10.  NEW SECTION.  249H.10  CAREGIVER SUPPORT –
 16  8 ACCESS AND EDUCATION PROGRAMS.
 16  9    The department of human services and the department of
 16 10 elder affairs, in consultation with the senior living
 16 11 coordinating unit, shall implement a caregiver support program
 16 12 to provide access to respite care and to provide education to
 16 13 caregivers in providing appropriate care to seniors and
 16 14 persons with disabilities.  The program shall be provided
 16 15 through the area agencies on aging or other appropriate
 16 16 agencies.
 16 17    Sec. 11.  NEW SECTION.  249H.11  FUTURE REPEAL.
 16 18    Section 249H.6 is repealed on June 30, 2005.  However,
 16 19 grants awarded and moneys appropriated for grants on or before
 16 20 June 30, 2005, shall be disbursed to eligible applicants after
 16 21 that date if necessary.  
 16 22                          DIVISION III
 16 23                    MISCELLANEOUS PROVISIONS
 16 24    Sec. 12.  NEW SECTION.  249A.18A  RESIDENT ASSESSMENT.
 16 25    A nursing facility as defined in section 135C.1 shall
 16 26 complete a resident assessment prior to initial admission of a
 16 27 resident and periodically during the resident's stay in the
 16 28 facility.  The assessment shall be completed for each
 16 29 prospective resident and current resident regardless of payor
 16 30 source.  The nursing facility may utilize the same resident
 16 31 assessment tool required for certification of the facility
 16 32 under the medical assistance and federal Medicare programs to
 16 33 comply with this section.
 16 34    Sec. 13.  Section 231.58, Code 1999, is amended to read as
 16 35 follows:
 17  1    231.58  LONG-TERM CARE SENIOR LIVING COORDINATING UNIT.
 17  2    1.  A long-term care senior living coordinating unit is
 17  3 created within the department of elder affairs.  The
 17  4 membership of the coordinating unit consists of:
 17  5    a.  The director of human services.
 17  6    b.  The director of the department of elder affairs.
 17  7    c.  The director of public health.
 17  8    d.  The director of the department of inspections and
 17  9 appeals.
 17 10    e.  Two members appointed by the governor.
 17 11    f.  Four members of the general assembly, as ex officio,
 17 12 nonvoting members.
 17 13    2.  The legislative members of the unit shall be appointed
 17 14 by the majority leader of the senate, after consultation with
 17 15 the president of the senate and the minority leader of the
 17 16 senate, and by the speaker of the house, after consultation
 17 17 with the majority leader and the minority leader of the house
 17 18 of representatives.
 17 19    3.  Nonlegislative members shall receive actual expenses
 17 20 incurred while serving in their official capacity and may also
 17 21 be eligible to receive compensation as provided in section
 17 22 7E.6.  Legislative members shall receive compensation pursuant
 17 23 to section 2.12.
 17 24    2. 4.  The long-term care senior living coordinating unit
 17 25 shall:
 17 26    a.  Develop, for legislative review, the mechanisms and
 17 27 procedures necessary to implement, utilizing current
 17 28 personnel, a case-managed system of long-term care based on a
 17 29 uniform comprehensive assessment tool.
 17 30    b.  Develop common intake and release procedures for the
 17 31 purpose of determining eligibility at one point of intake and
 17 32 determining eligibility for programs administered by the
 17 33 departments of human services, public health, and elder
 17 34 affairs, such as the medical assistance program, federal food
 17 35 stamp program, and homemaker-home health aide programs.
 18  1    c.  Develop common definitions for long-term care services.
 18  2    d.  Develop procedures for coordination at the local and
 18  3 state level among the providers of long-term care, including
 18  4 when possible co-campusing of services.  The director of the
 18  5 department of general services shall give particular attention
 18  6 to this section when arranging for office space pursuant to
 18  7 section 18.12 for these three departments.
 18  8    e.  Prepare a long-range plan for the provision of long-
 18  9 term care services within the state.
 18 10    f.  Propose rules and procedures for the development of a
 18 11 comprehensive long-term care and community-based services
 18 12 program.
 18 13    g.  Submit a report of its activities to the governor and
 18 14 general assembly on January 15 of each year.
 18 15    h.  Provide direction and oversight for disbursement of
 18 16 moneys from the senior living trust fund created in section
 18 17 249H.4.
 18 18    i.  Consult with the state universities and other
 18 19 institutions with expertise in the area of senior issues and
 18 20 long-term care.
 18 21    Sec. 14.  Section 231C.2, subsection 1, Code 1999, is
 18 22 amended to read as follows:
 18 23    1.  "Assisted living" means provision of housing with
 18 24 services which may include but are not limited to health-
 18 25 related care, personal care, and assistance with instrumental
 18 26 activities of daily living to six or more tenants in a
 18 27 physical structure which provides a homelike environment.
 18 28 "Assisted living" also includes encouragement of family
 18 29 involvement, tenant self-direction, and tenant participation
 18 30 in decisions that emphasize choice, dignity, privacy,
 18 31 individuality, shared risk, and independence.  "Assisted
 18 32 living" does not include includes the provision of housing and
 18 33 assistance with instrumental activities of daily living which
 18 34 does not also include provision of only if personal care or
 18 35 health-related care is also included.
 19  1    Sec. 15.  SENIOR LIVING INSURANCE AND INCENTIVES INTERIM
 19  2 STUDY.  The legislative council is requested to authorize a
 19  3 senior living insurance and incentives study committee to
 19  4 review current long-term care insurance laws, current long-
 19  5 term care insurance options available in the state, the types
 19  6 of services covered under a long-term care insurance option,
 19  7 and incentives for the purchase of long-term care insurance
 19  8 including, but not limited to, tax credits.  The study
 19  9 committee shall include input from consumers, consumer
 19 10 advocates, the insurance industry, and the health care
 19 11 industry.  The study committee shall submit a report of
 19 12 findings and recommendations to the governor and the general
 19 13 assembly on or before December 15, 2000.
 19 14    Sec. 16.  REIMBURSEMENT METHODOLOGY TASK FORCE – REPORT.
 19 15 The department of human services shall convene a task force
 19 16 consisting of the members of the senior living coordinating
 19 17 unit, representatives of the nursing facility industry,
 19 18 consumers and consumer advocates to develop a case-mix
 19 19 reimbursement methodology.  The methodology developed shall
 19 20 include a limited number of levels of reimbursement.  The task
 19 21 force shall submit a report of the reimbursement methodology
 19 22 developed to the governor and the general assembly on or
 19 23 before December 15, 2000.  The department of human services
 19 24 shall also include in the report a summary of the expenditures
 19 25 for nursing facility conversion and for long-term care service
 19 26 development.
 19 27    Sec. 17.  RESIDENTIAL CARE FACILITIES – APPLICATION OF
 19 28 PROGRAM.  The department of human services shall review and
 19 29 shall make recommendations to the general assembly on or
 19 30 before October 1, 2000, relating to the feasibility of
 19 31 applying the senior living program and any changes in the
 19 32 reimbursement methodology to residential care facilities.
 19 33    Sec. 18.  MAINTENANCE OF FISCAL EFFORT.  The fiscal effort,
 19 34 existing on June 30, 2000, represented by appropriations made
 19 35 for long-term care services by the general assembly, shall be
 20  1 maintained and a reduction shall not be made in such
 20  2 appropriations to the department of human services or the
 20  3 department of elder affairs for those services as a result of
 20  4 this Act.
 20  5    Sec. 19.  DEPARTMENT OF ELDER AFFAIRS APPROPRIATION.  There
 20  6 is appropriated from the senior living trust fund created in
 20  7 section 249H.4 in this Act to the department of elder affairs
 20  8 for the fiscal year beginning July 1, 2000, and ending June
 20  9 30, 2001, the following amount, or so much thereof as is
 20 10 necessary, to be used for the purposes designated:
 20 11    For the development of a comprehensive senior living
 20 12 program, including program administration and costs associated
 20 13 with implementation, salaries, support, maintenance,
 20 14 miscellaneous purposes, and for not more than the following
 20 15 full-time equivalent positions:  
 20 16 .................................................. $  4,188,123
 20 17 ............................................... FTEs       7.00
 20 18    The department of elder affairs may adopt emergency rules
 20 19 to carry out the provisions of this section.
 20 20    Sec. 20.  DEPARTMENT OF HUMAN SERVICES APPROPRIATION.
 20 21 There is appropriated from the senior living trust fund
 20 22 created in section 249H.4 in this Act to the department of
 20 23 human services for the fiscal year beginning July 1, 2000, and
 20 24 ending June 30, 2001, the following amounts, or so much
 20 25 thereof as is necessary, to be used for the purposes
 20 26 designated:
 20 27    1.  To provide grants to nursing facilities for conversion
 20 28 to assisted living programs or to provide long-term care
 20 29 alternatives and to provide grants to long-term care providers
 20 30 for development of long-term care alternatives:  
 20 31 ................................................. $ 20,000,000
 20 32    2.  To supplement the medical assistance appropriation and
 20 33 to provide reimbursement for health care services and rent
 20 34 expenses to eligible persons through the home and community-
 20 35 based services waiver and the state supplementary assistance
 21  1 program, including program administration and data system
 21  2 costs associated with implementation, salaries, support,
 21  3 maintenance, miscellaneous purposes, and for not more than the
 21  4 following full-time equivalent positions:  
 21  5 .................................................. $  2,240,034
 21  6 ............................................... FTEs       5.00
 21  7    3.  To implement nursing facility provider reimbursement at
 21  8 the seventieth percentile and case-mix reimbursement
 21  9 methodology changes:  
 21 10 .................................................. $ 17,750,000
 21 11    The department shall transfer these funds to supplement
 21 12 other appropriations to the department of human services to
 21 13 carry out the purposes of this subsection.  The total amount
 21 14 expended by the department of human services in the fiscal
 21 15 year beginning July 1, 2000, and ending June 30, 2001, for
 21 16 nursing facility provider reimbursements under both the
 21 17 seventieth percentile and the case-mix reimbursement
 21 18 methodologies shall not exceed the amount appropriated in this
 21 19 subsection.
 21 20    Sec. 21.  EMERGENCY RULES.
 21 21    1.  The department of human services and the department of
 21 22 elder affairs may adopt emergency rules to implement this Act.
 21 23    2.  If the department of human services or the department
 21 24 of elder affairs adopts emergency rules under section 17A.4,
 21 25 subsection 2, and section 17A.5, subsection 2, paragraph "b",
 21 26 to implement this Act, the rules shall become effective
 21 27 immediately upon filing, unless a later effective date is
 21 28 specified in the rules.  Any rules adopted in accordance with
 21 29 the provisions of this section shall also be published as
 21 30 notice of intended action as provided in section 17A.4.
 21 31    Sec. 22.  EFFECTIVE DATE.  This Act, being deemed of
 21 32 immediate importance, takes effect upon enactment.
 21 33    Sec. 23.  RETROACTIVE APPLICABILITY.  The section in this
 21 34 Act that creates section 249H.6 as it relates to receipt of
 21 35 federal funding, is retroactively applicable to October 1,
 22  1 1999.  
 22  2 
 22  3 
 22  4                                                             
 22  5                               MARY E. KRAMER
 22  6                               President of the Senate
 22  7 
 22  8 
 22  9                                                             
 22 10                               BRENT SIEGRIST
 22 11                               Speaker of the House
 22 12 
 22 13    I hereby certify that this bill originated in the Senate and
 22 14 is known as Senate File 2193, Seventy-eighth General Assembly.
 22 15 
 22 16 
 22 17                                                             
 22 18                               MICHAEL E. MARSHALL
 22 19                               Secretary of the Senate
 22 20 Approved                , 2000
 22 21 
 22 22 
 22 23                               
 22 24 THOMAS J. VILSACK
 22 25 Governor
     

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