House File 2312 - Introduced HOUSE FILE 2312 BY WINDSCHITL A BILL FOR An Act relating to rules for compensation under the medical 1 assistance program of individuals holding certain positions 2 in nursing facilities. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 5529YH (7) 84 pf/nh
H.F. 2312 Section 1. RULES RELATING TO COMPENSATION OF NURSING 1 FACILITY EMPLOYEES. The department of human services shall 2 amend administrative rules adopted pursuant to chapter 249A 3 relating to limitations of expenses relating to a reasonable 4 allowance of compensation for services of owners of nursing 5 facilities or their immediate relatives under the medical 6 assistance program as specified in 441 IAC 81.6(11)(h) to 7 provide all of the following: 8 1. With regard to what constitutes compensation, the rules 9 shall provide that the costs of benefits, excluding employment 10 taxes but including group health insurance, retirement plans, 11 and education or other benefits, shall not be included in the 12 computation of the base maximum allowed compensation amount. 13 However, the costs attributable to such benefits shall not 14 exceed twenty percent of the amount that constitutes such base 15 maximum allowed compensation amount. A nursing facility shall 16 provide documentation of the costs of any benefits excluded 17 from the compensation for any related party. 18 2. In determining reasonableness of compensation, the facts 19 and circumstances of the case shall include whether the nursing 20 facility is located in a rural or urban area. 21 3. Beginning July 1, 2012, in determining the base maximum 22 allowed compensation for an administrator on a biannual 23 basis, the maximum allowed compensation amounts for such 24 administrators shall be calculated based upon the previous 25 year’s averages of all nonrelated party administrators and 26 shall be increased or decreased by the inflation factor 27 specified in 441 IAC 81.6(18). 28 4. Beginning July 1, 2012, the maximum allowed compensation 29 for any other employee of a facility who has a five percent 30 or greater interest in ownership of the facility shall not 31 exceed seventy-five percent of the amount allowed for the 32 administrator of the facility. 33 Sec. 2. ADMINISTRATIVE RULES. The department of human 34 services may adopt emergency rules under section 17A.4, 35 -1- LSB 5529YH (7) 84 pf/nh 1/ 2
H.F. 2312 subsection 3, and section 17A.5, subsection 2, paragraph “b”, 1 to implement the provisions of this Act, and the rules shall 2 be effective immediately upon filing unless a later date is 3 specified in the rules. Any rules adopted in accordance with 4 this section shall also be published as a notice of intended 5 action as provided in section 17A.4. 6 EXPLANATION 7 This bill directs the department of human services to amend 8 administrative rules relating to what constitutes compensation 9 for services of owners of nursing facilities or their immediate 10 relatives under the medical assistance program. Benefits such 11 as group health insurance, retirement plans, and education or 12 other benefits are not to be included in the computation of the 13 base maximum allowed compensation amount, but are limited to 20 14 percent of such base maximum allowed compensation amount. The 15 determination of reasonableness of compensation is to include 16 whether the facility is located in a rural or urban area; the 17 determination of the base maximum allowed compensation for 18 an administrator is to include a comparison with all other 19 administrators plus an inflation amount; and the determination 20 of compensation for other employees who have at least a 5 21 percent ownership interest in the facility is not to exceed 22 75 percent of the amount allowed for the administrator of the 23 facility. The bill provides for adoption of emergency rules. 24 -2- LSB 5529YH (7) 84 pf/nh 2/ 2