House Study Bill 124



                                       HOUSE FILE       
                                       BY  (PROPOSED COMMITTEE ON
                                            HUMAN RESOURCES BILL
                                            BY CHAIRPERSON UPMEYER)


    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 2005HC 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 shall assess licensed nursing facilities
  1  6 a quality assurance assessment not to exceed six percent of
  1  7 the total annual revenue of the nursing facility.  The maximum
  1  8 assessment shall be consistent with the guidelines established
  1  9 by the centers for Medicare and Medicaid services of the
  1 10 United States department of health and human services and the
  1 11 corresponding waiver of the uniform tax requirement granted
  1 12 pursuant to the waiver request submitted under this section.
  1 13    2.  The quality assurance assessment shall be collected by
  1 14 the department in equal monthly amounts on or before the
  1 15 fifteenth day of each month.  The department may deduct the
  1 16 monthly assessment amount from medical assistance payments to
  1 17 a nursing facility.  The amount deducted from payments shall
  1 18 not exceed the total amount of the fee due.
  1 19    3.  Revenue generated from the quality assurance assessment
  1 20 shall be deposited in the senior living trust fund created in
  1 21 section 249H.4.  The revenues shall only be used for services
  1 22 for which federal financial participation under the medical
  1 23 assistance program is available to match state funds.
  1 24    4.  The department of human services shall provide a
  1 25 reimbursement to nursing facilities under this section.  The
  1 26 reimbursement amount shall be calculated as a per patient day
  1 27 amount and shall be paid to nursing facilities in addition to
  1 28 the reimbursement payment specified in 2001 Iowa Acts, chapter
  1 29 192, section 4, subsection 2, paragraph "c".
  1 30    5.  If federal financial participation to match the
  1 31 assessments made under subsection 1 becomes unavailable under
  1 32 federal law, the department shall terminate the imposition of
  1 33 the assessment beginning on the date that the federal
  1 34 statutory, regulatory, or interpretive change takes effect.
  1 35    6.  The department may procure a sole source contract to
  2  1 implement the provisions of this section.
  2  2    7.  For the purposes of this section, "nursing facility"
  2  3 means nursing facility as defined in section 135C.1, excluding
  2  4 residential care facilities and nursing facilities that are
  2  5 operated by the state.
  2  6    8.  The department may adopt administrative rules under
  2  7 section 17A.4, subsection 2, and section 17A.5, subsection 2,
  2  8 paragraph "b", to implement this section.
  2  9    Sec. 2.  STATE PLAN AMENDMENT == QUALITY ASSURANCE
  2 10 ASSESSMENT == WAIVER OF UNIFORM TAX.
  2 11    1.  The department of human services shall submit a medical
  2 12 assistance state plan amendment to the centers for Medicare
  2 13 and Medicaid services of the United States department of
  2 14 health and human services to effectuate the nursing facility
  2 15 quality assurance assessment.  The department of human
  2 16 services shall take any necessary steps to preserve the
  2 17 original applicability date of October 1, 2003, established
  2 18 pursuant to 2003 Iowa Acts, chapter 112, section 4, subsection
  2 19 9, as amended by 2004 Iowa Acts, chapter 1085, sections 8 and
  2 20 10.
  2 21    2.  The department of human services shall submit an
  2 22 application to the secretary of the United States department
  2 23 of health and human services to request a waiver of the
  2 24 uniform tax requirement pursuant to 42 U.S.C. } 1396b(w)(3)(E)
  2 25 and 42 C.F.R. } 433.68(e)(2).
  2 26    Sec. 3.  CONTINGENT EFFECTIVE DATE.
  2 27    1.  Section 1 of this Act, amending section 249A.20B, shall
  2 28 not take effect unless the department of human services
  2 29 receives approval of both the medical assistance state plan
  2 30 amendment submitted pursuant to section 2 of this Act from the
  2 31 centers for Medicare and Medicaid services of the United
  2 32 States department of health and human services to effectuate
  2 33 the nursing facility quality assurance assessment and of the
  2 34 application to the secretary of the United States department
  2 35 of health and human services for a waiver of the uniform tax
  3  1 requirement pursuant to 42 U.S.C. } 1396b(w)(3)(E) and 42
  3  2 C.F.R. } 433.68(e)(2) submitted pursuant to section 2 of this
  3  3 Act.  If both approvals are received, the amendment to section
  3  4 249A.20B in this Act shall take effect upon the date that both
  3  5 approvals have been received by the department, and the
  3  6 department shall notify the Code editor of the date of receipt
  3  7 of the approvals.
  3  8    2.  If both approvals described in subsection 1 are not
  3  9 received by June 30, 2005, the section of this Act amending
  3 10 section 249A.20B is repealed.
  3 11    Sec. 4.  RETROACTIVE APPLICABILITY.  If the amendment to
  3 12 section 249A.20B in this Act takes effect as provided in
  3 13 section 3 of this Act, any assessment made under section
  3 14 249A.20B, as amended, may be made retroactive to October 1,
  3 15 2003, if preserved as provided in section 2 of this Act, or
  3 16 the applicability date approved in the state plan amendment.
  3 17    Sec. 5.  EFFECTIVE DATES.  Section 2 of this Act, relating
  3 18 to directing the department of human services to submit a
  3 19 medical assistance state plan amendment to the centers for
  3 20 Medicare and Medicaid services of the United States department
  3 21 of health and human services to effectuate the nursing
  3 22 facility quality assurance assessment and directing the
  3 23 department of human services to submit an application to the
  3 24 secretary of the United States department of health and human
  3 25 services for a waiver of the uniform tax requirement pursuant
  3 26 to 42 U.S.C. } 1396b(w)(3)(E) and 42 C.F.R. } 433.68(e)(2),
  3 27 being deemed of immediate importance, takes effect upon
  3 28 enactment.
  3 29                           EXPLANATION
  3 30    This bill provides for a quality assurance assessment not
  3 31 to exceed 6 percent of the total annual revenue of a licensed
  3 32 nursing facility.  The maximum assessment on a nursing
  3 33 facility is to be consistent with the guidelines established
  3 34 by the centers for Medicare and Medicaid services of the
  3 35 United States department of health and human services and the
  4  1 corresponding waiver of uniformity of the assessment granted
  4  2 by the federal government.  This is similar to a provision
  4  3 enacted in 2003 which did not take effect due to lack of
  4  4 federal approval of the medical assistance state plan
  4  5 amendment and the waiver of the uniform tax requirement.
  4  6    The bill directs the department of human services (DHS) to
  4  7 submit a medical assistance state plan amendment to the
  4  8 centers for Medicare and Medicaid services of the United
  4  9 States department of health and human services to effectuate
  4 10 the assessment.  The bill directs DHS to take any necessary
  4 11 steps to preserve the original retroactive applicability date
  4 12 of October 1, 2003, that was established pursuant to the 2003
  4 13 enactment as amended by a 2004 enactment.
  4 14    The bill also directs DHS to submit an application to the
  4 15 secretary of the United States department of health and human
  4 16 services to request a waiver of the uniform tax requirement on
  4 17 nursing facilities.
  4 18    The bill provides that the assessment is to be collected by
  4 19 DHS in equal monthly amounts on or before the 15th day of each
  4 20 month, and that DHS may deduct the monthly assessment amount
  4 21 from medical assistance payments to a nursing facility.  The
  4 22 amount deducted from payments is not to exceed the total
  4 23 amount of the fee due.
  4 24    Revenue generated from the assessment is to be deposited in
  4 25 the senior living trust fund, and the revenues are only to be
  4 26 used for services for which federal financial participation
  4 27 under the medical assistance program is available to match
  4 28 state funds.
  4 29    The bill provides that if federal financial participation
  4 30 to match the assessments becomes unavailable under federal
  4 31 law, DHS is to terminate the imposition of the assessment
  4 32 beginning on the date that the federal statutory, regulatory,
  4 33 or interpretive change takes effect.
  4 34    DHS may procure a sole source contract and may adopt
  4 35 administrative rules to implement the bill.
  5  1    The portions of the bill relating to implementation of the
  5  2 quality assurance assessment do not take effect until DHS
  5  3 receives approval of both the medical assistance state plan
  5  4 amendment and the waiver of the uniform tax requirement.  If
  5  5 both approvals are received, these portions of the bill take
  5  6 effect upon the date that both approvals have been received by
  5  7 the department, and DHS is to notify the Code editor of the
  5  8 date of receipt of the approvals.  If both approvals are not
  5  9 received by June 30, 2005, the provision is repealed.  The
  5 10 bill also provides that if the bill takes effect, the
  5 11 assessment may be made retroactive to October 1, 2003, if
  5 12 preserved under the original state plan amendment submitted,
  5 13 or the applicability date approved in the state plan
  5 14 amendment.
  5 15    The portions of the bill directing DHS to submit a medical
  5 16 assistance state plan amendment and to request a waiver of the
  5 17 uniform tax requirement take effect upon enactment.
  5 18 LSB 2005HC 81
  5 19 pf:nh/pj/5