HB6604 93RD GENERAL ASSEMBLY

LRB093 15229 DRJ 47301 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6604

Introduced 02/09/04, by Dan Reitz

SYNOPSIS AS INTRODUCED:

305 ILCS 5/5-5.8c new

Amends the Illinois Public Aid Code. Provides that under the Medicaid program, a nursing home may place up to 50% of its beds on layaway; sets forth requirements for placing beds on layaway. Provides for adjustment of a nursing home's Medicaid payment rate based on the nursing home's layaway or delicensure of beds.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning public aid.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The Illinois Public Aid Code is amended by adding Section 5-5.8c as follows:

(305 ILCS 5/5-5.8c new)

Sec. 5-5.8c. Nursing homes; bed layaway.

(a) Upon prior written notice to the Department of Public Aid and in accordance with rules adopted by the Department, a nursing facility may place up to 50% of the facility's beds on layaway. A nursing facility may not discharge a resident in order to lay away a bed. Notice to the Department must be given 60 days prior to the effective date of the layaway. Beds on layaway shall have the same status as voluntarily delicensed and decertified beds. In addition, beds on layaway may be removed from layaway at any time on or after one year after the effective date of layaway in the facility of origin, with a 60-day notice to the Department. A nursing facility that removes beds from layaway may not place beds on layaway status for one year after the effective date of the removal from layaway. The Department may approve the immediate removal of beds from layaway if necessary to provide access to those nursing home beds to residents relocated from other nursing homes due to emergency situations or closure. If approval is granted, the one-year restriction on placing beds on layaway after a removal of beds from layaway shall not apply. Beds may remain on layaway for up to 5 years.

(b) For rate years beginning on or after July 1, 2005, a nursing facility reimbursed under this Article that has placed beds on layaway shall have those beds given the same effect as if the beds had been delicensed, so long as the beds remain on layaway. At the time of a layaway, a facility may change its single bed election for use in calculating capacity days. The property payment rate increase shall be effective the first day of the month following the month in which the layaway of the beds becomes effective.

(c) For rate years beginning on or after July 1, 2005, a nursing facility that has placed beds on layaway shall, for so long as the beds remain on layaway, be allowed to do the following:

(1) Aggregate the applicable investment per bed limits based on the number of beds licensed immediately before entering the alternative payment system.

(2) Retain or change the facility's single bed election for use in calculating capacity days as provided by rule.

(3) Establish capacity days based on the number of beds immediately before the layaway and the number of beds after the layaway. The Department shall increase the facility's property payment rate according to rules adopted by the Department.

(d) If a nursing facility removes a bed from layaway status in accordance with rules adopted by the Department, the Department shall establish capacity days based on the number of licensed and certified beds in the facility not on layaway and shall reduce the nursing facility's property payment rate in accordance with subsection (c).

(e) For rate years beginning on or after July 1, 2005, a nursing facility that has delicensed beds after July 1, 2005 by giving notice of the delicensure to the Department of Public Aid according to rules adopted by the Department shall be allowed to do the following:

(1) Aggregate the applicable investment per bed limits based on the number of beds licensed immediately before entering the alternative payment system.

(2) Retain or change the facility's single bed election for use in calculating capacity days as provided by rule.

(3) Establish capacity days based on the number of beds immediately before the delicensure and the number of beds after the delicensure. The Department shall increase the facility's property payment rate according to rules adopted by the Department.

(f) Any beds placed on layaway shall not be included in calculating facility occupancy as it pertains to leave days as provided in rules adopted by the Department.

(g) The rental rate calculated after placing beds on layaway may not be less than the rental rate before placing beds on layaway.

(h) A facility that does not utilize the space made available as a result of bed layaway or delicensure under this Section to reduce the number of beds per room or provide more common space for nursing facility uses or perform other activities related to the operation of the nursing facility shall have its property rate increase calculated under this Section reduced according to rules adopted by the Department.