House File 788 - Introduced



                                   HOUSE FILE       
                                   BY  COMMITTEE ON HUMAN RESOURCES

                                   (SUCCESSOR TO HSB 124)


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to a nursing facility quality assurance
  2    assessment, providing a contingent effective date, providing
  3    for retroactive applicability, and providing an effective
  4    date.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  6 TLSB 2005HV 81
  7 pf/pj/5

PAG LIN



  1  1    Section 1.  Section 249A.20B, Code 2005, is amended by
  1  2 striking the section and inserting in lieu thereof the
  1  3 following:
  1  4    249A.20B  NURSING FACILITY QUALITY ASSURANCE ASSESSMENT.
  1  5    1.  The department may assess licensed nursing facilities a
  1  6 quality assurance assessment not to exceed six percent of the
  1  7 total annual revenue of all nursing facilities, in the
  1  8 aggregate.  The maximum assessment shall be consistent with
  1  9 the guidelines established by the centers for Medicare and
  1 10 Medicaid services of the United States department of health
  1 11 and human services and the corresponding waiver request
  1 12 submitted in accordance with this section.
  1 13    2.  The department may require that the quality assurance
  1 14 assessment be paid to the department by a nursing facility in
  1 15 equal monthly amounts on or before the fifteenth day of the
  1 16 month, or the department may deduct the monthly assessment
  1 17 amount from the medical assistance payments to a nursing
  1 18 facility.  The amount deducted from medical assistance
  1 19 payments shall not exceed the total amount of the fee due.
  1 20 The department shall assess interest on any assessment amount
  1 21 not paid or on any assessment amount paid after the date the
  1 22 assessment is due to be paid.
  1 23    3.  The department of human services shall provide a
  1 24 reimbursement to nursing facilities under this section. The
  1 25 reimbursement amount shall be calculated as a per patient day
  1 26 amount and shall be paid to nursing facilities in addition to
  1 27 the reimbursement payment specified in 2001 Iowa Acts, chapter
  1 28 192, section 4, subsection 2, paragraph "c".
  1 29    4.  In addition to the reimbursement amount paid pursuant
  1 30 to subsection 3, and the reimbursement payment specified in
  1 31 2001 Iowa Acts, chapter 192, section 4, subsection 2,
  1 32 paragraph "c", the department may pay nursing facilities an
  1 33 additional amount during the period in which the quality
  1 34 assurance assessment is provided under this section as a per
  1 35 patient day amount.
  2  1    5.  Revenue generated from the quality assurance assessment
  2  2 less any amount paid to nursing facilities under subsections 3
  2  3 and 4, shall be deposited in the senior living trust fund
  2  4 created in section 249H.4.
  2  5    6.  If federal financial participation to match the
  2  6 assessment made under subsection 1 becomes unavailable under
  2  7 federal law or if federal approval of the assessment is
  2  8 otherwise terminated following approval:
  2  9    a.  The department shall terminate the imposition of the
  2 10 assessment beginning on the date that the federal statutory,
  2 11 regulatory, or interpretive changes take effect.
  2 12    b.  The department shall terminate payment of the
  2 13 reimbursement amount pursuant to subsection 3 and the
  2 14 additional amount pursuant to subsection 4.
  2 15    c.  The department is not required to continue payment or
  2 16 to replace payment of the reimbursement amount or any
  2 17 additional payment with state=only funds.
  2 18    7.  The department may procure a sole source contract to
  2 19 implement the provisions of this section.
  2 20    8.  This section shall not be interpreted to authorize the
  2 21 department to seek federal approval to implement any other
  2 22 quality assurance assessment unless specifically authorized by
  2 23 the general assembly.
  2 24    9.  For the purposes of this section, "nursing facility"
  2 25 means nursing facility as defined in section 135C.1, excluding
  2 26 residential care facilities and nursing facilities that are
  2 27 operated by the state.
  2 28    10.  The department of human services may adopt
  2 29 administrative rules under section 17A.4, subsection 2, and
  2 30 section 17A.5, subsection 2, paragraph "b", to implement this
  2 31 section.
  2 32    Sec. 2.  STATE PLAN AMENDMENT == QUALITY ASSURANCE
  2 33 ASSESSMENT == WAIVER OF UNIFORM TAX.  If the department of
  2 34 human services determines that the opportunities for the state
  2 35 to receive additional federal funding under the medical
  3  1 assistance program will not be jeopardized by implementation
  3  2 of a quality assurance assessment on licensed nursing
  3  3 facilities, the department shall do both of the following:
  3  4    1.  Submit a medical assistance state plan amendment to the
  3  5 centers for Medicare and Medicaid services of the United
  3  6 States department of health and human services to effectuate
  3  7 the nursing facility quality assurance assessment.  The
  3  8 department of human services may take any necessary steps to
  3  9 preserve the original applicability date of October 1, 2003,
  3 10 established pursuant to 2003 Iowa Acts, chapter 112, section
  3 11 4, subsection 9, as amended by 2004 Iowa Acts, chapter 1085,
  3 12 sections 8 and 10.
  3 13    2.  Submit an application to the secretary of the United
  3 14 States department of health and human services to request a
  3 15 waiver of the uniform tax requirement pursuant to 42 U.S.C. }
  3 16 1396b(w)(3)(E) and 42 C.F.R. } 433.68(e)(2).
  3 17    Sec. 3.  CONTINGENT EFFECTIVE DATE.
  3 18    1.  Section 1 of this Act, amending section 249A.20B, shall
  3 19 not take effect unless all of the following conditions are
  3 20 met:
  3 21    a.  The department of human services receives approval of
  3 22 both the medical assistance state plan amendment submitted
  3 23 pursuant to section 2 of this Act from the centers for
  3 24 Medicare and Medicaid services of the United States department
  3 25 of health and human services to effectuate the nursing
  3 26 facility quality assurance assessment and of the application
  3 27 to the secretary of the United States department of health and
  3 28 human services for a waiver of the uniform tax requirement
  3 29 pursuant to 42 U.S.C. } 1396(w)(3)(E) and 42 C.F.R. }
  3 30 433.68(e)(2) submitted pursuant to section 2 of this Act.
  3 31    b.  The reimbursement payments and any additional payments
  3 32 proposed to be made are not deemed hold harmless payments by
  3 33 the centers for Medicare and Medicaid services of the United
  3 34 States department of health and human services, contrary to
  3 35 federal rules regarding allowable health care provider taxes.
  4  1    c.  The department of human services submits a plan for
  4  2 implementation of the quality assurance assessment to the
  4  3 administrative rules review committee which includes an
  4  4 evaluation of the projected effect of the assessment and the
  4  5 specific effect of payment of an additional amount to nursing
  4  6 facilities relative to all of the following:
  4  7    (1)  The impact on the nursing facility case=mix
  4  8 reimbursement system.
  4  9    (2)  The interest of the state in rebalancing the long=
  4 10 term care system.
  4 11    (3)  The potential that the centers for Medicare and
  4 12 Medicaid services of the United States department of health
  4 13 and human services will reduce the ability of the state to
  4 14 effectively utilize the quality assurance assessment.
  4 15    2.  If the approvals described in subsection 1, paragraph
  4 16 "a", are not received by December 31, 2005, the section of
  4 17 this Act amending section 249A.20B is repealed.
  4 18    Sec. 4.  CONTINGENT REPEAL.  If the amendment to section
  4 19 249A.20B in this Act takes effect as provided in section 3 of
  4 20 this Act, section 249A.20B, as amended, is repealed June 30,
  4 21 2006.
  4 22    Sec. 5.  RETROACTIVE APPLICABILITY.  If the amendment to
  4 23 section 249A.20B in this Act takes effect as provided in
  4 24 section 3 of this Act, any assessment made under section
  4 25 249A.20B, as amended, may be made retroactive to October 1,
  4 26 2003, if preserved as provided in section 2 of this Act, or
  4 27 the applicability date approved in the state plan amendment.
  4 28    Sec. 6.  EFFECTIVE DATES.  Section 2 of this Act, relating
  4 29 to directing the department of human services to submit a
  4 30 medical assistance state plan amendment to the centers for
  4 31 Medicare and Medicaid services of the United States department
  4 32 of health and human services to effectuate the nursing
  4 33 facility quality assurance assessment and directing the
  4 34 department of human services to submit an application to the
  4 35 secretary of the United States department of health and human
  5  1 services for a waiver of the uniform tax requirement pursuant
  5  2 to 42 U.S.C. } 1396b(w)(3)(E) and 42 C.F.R. } 433.68(e)(2),
  5  3 being deemed of immediate importance, takes effect upon
  5  4 enactment.
  5  5                          EXPLANATION
  5  6    This bill provides for the imposition of a quality
  5  7 assurance assessment not to exceed 6 percent of the total
  5  8 annual revenue of all licensed nursing facilities, in the
  5  9 aggregate, under the medical assistance program.  The maximum
  5 10 assessment is to be consistent with the guidelines established
  5 11 by the centers for Medicare and Medicaid services of the
  5 12 United States department of health and human services and the
  5 13 corresponding waiver of uniformity of the assessment granted
  5 14 by the federal government.  The bill provides for payment of
  5 15 the assessment by nursing facilities and for reimbursement of
  5 16 the nursing facilities by the department of human services
  5 17 (DHS).  The bill also provides for payment of an additional
  5 18 amount to nursing facilities beyond any reimbursement amounts.
  5 19 The bill provides that the net revenue generated by imposition
  5 20 of the assessment is to be deposited in the senior living
  5 21 trust fund.
  5 22    The bill provides that if federal financial participation
  5 23 to match the assessment becomes unavailable or if federal
  5 24 approval of the assessment is otherwise terminated following
  5 25 approval, DHS is to terminate the imposition of the assessment
  5 26 and payment of the reimbursement amount and any additional
  5 27 amount, and is not required to continue payment or to replace
  5 28 payment of the reimbursement amount or any additional amount
  5 29 with state=only funds.
  5 30    The bill authorizes DHS to procure a sole source contract
  5 31 to implement the bill and provides that the bill is not to be
  5 32 interpreted as authorizing the department to seek federal
  5 33 approval to implement any other quality assurance assessment
  5 34 unless specifically authorized by the general assembly.
  5 35    If DHS determines that the opportunities for the state to
  6  1 receive additional federal funding under the medical
  6  2 assistance program will not be jeopardized by implementation
  6  3 of the assessment, the bill directs DHS to seek the necessary
  6  4 waiver of the uniform tax requirement and submit a state plan
  6  5 amendment to implement the assessment.
  6  6    The quality assurance assessment does not take effect
  6  7 unless DHS receives approval of the necessary waiver and state
  6  8 plan amendment, the reimbursement payments and additional
  6  9 payments are not deemed hold harmless payments by the federal
  6 10 government, and the department submits an implementation plan
  6 11 to the administrative rules review committee.  Additionally,
  6 12 if federal approval of the waiver and the state plan amendment
  6 13 are not received by December 31, 2005, the assessment
  6 14 provision is repealed.
  6 15    If the assessment does take effect, the assessment
  6 16 provision is repealed June 30, 2006.  If the assessment does
  6 17 take effect, the assessment may be retroactive to October 1,
  6 18 2003, or is applicable from the date approved in the state
  6 19 plan amendment.
  6 20    The provision directing DHS to submit a medical assistance
  6 21 state plan amendment and to request a waiver of the uniform
  6 22 tax requirement takes effect upon enactment.
  6 23 LSB 2005HV 81
  6 24 pf:nh/pj/5