HF 2312 (LSB 5529YH (7) 84)

HOUSE FILE 2312

BY  WINDSCHITL

A BILL FOR

An Act relating to rules for compensation under the medical assistance program of individuals holding certain positions in nursing facilities.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  RULES RELATING TO COMPENSATION OF NURSING FACILITY EMPLOYEES.  The department of human services shall amend administrative rules adopted pursuant to chapter 249A relating to limitations of expenses relating to a reasonable allowance of compensation for services of owners of nursing facilities or their immediate relatives under the medical assistance program as specified in 441 IAC 81.6(11)(h) to provide all of the following:
   1.  With regard to what constitutes compensation, the rules shall provide that the costs of benefits, excluding employment taxes but including group health insurance, retirement plans, and education or other benefits, shall not be included in the computation of the base maximum allowed compensation amount. However, the costs attributable to such benefits shall not exceed twenty percent of the amount that constitutes such base maximum allowed compensation amount. A nursing facility shall provide documentation of the costs of any benefits excluded from the compensation for any related party.
   2.  In determining reasonableness of compensation, the facts and circumstances of the case shall include whether the nursing facility is located in a rural or urban area.
   3.  Beginning July 1, 2012, in determining the base maximum allowed compensation for an administrator on a biannual basis, the maximum allowed compensation amounts for such administrators shall be calculated based upon the previous year’s averages of all nonrelated party administrators and shall be increased or decreased by the inflation factor specified in 441 IAC 81.6(18).
   4.  Beginning July 1, 2012, the maximum allowed compensation for any other employee of a facility who has a five percent or greater interest in ownership of the facility shall not exceed seventy-five percent of the amount allowed for the administrator of the facility.
    Sec. 2.  ADMINISTRATIVE RULES.  The department of human services may adopt emergency rules under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, to implement the provisions of this Act, and the rules shall be effective immediately upon filing unless a later date is specified in the rules. Any rules adopted in accordance with this section shall also be published as a notice of intended action as provided in section 17A.4.
EXPLANATION
   This bill directs the department of human services to amend administrative rules relating to what constitutes compensation for services of owners of nursing facilities or their immediate relatives under the medical assistance program. Benefits such as group health insurance, retirement plans, and education or other benefits are not to be included in the computation of the base maximum allowed compensation amount, but are limited to 20 percent of such base maximum allowed compensation amount. The determination of reasonableness of compensation is to include whether the facility is located in a rural or urban area; the determination of the base maximum allowed compensation for an administrator is to include a comparison with all other administrators plus an inflation amount; and the determination of compensation for other employees who have at least a 5 percent ownership interest in the facility is not to exceed 75 percent of the amount allowed for the administrator of the facility. The bill provides for adoption of emergency rules.