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
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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
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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
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