State of Illinois
91st General Assembly
Legislation

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91_HB2356

 
                                               LRB9104670DJcd

 1        AN ACT to amend the Illinois Public Aid Code by  changing
 2    Section 5-5.4 and repealing Article V-E.

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

 5        Section  5.  The Illinois Public Aid Code is  amended  by
 6    changing Section 5-5.4 as follows:

 7        (305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4)
 8        Sec.  5-5.4.  Standards of Payment - Department of Public
 9    Aid.  The Department of Public Aid shall develop standards of
10    payment of skilled nursing and intermediate care services  in
11    facilities providing such services under this Article which:
12        (1)  Provides  for  the  determination  of  a  facility's
13    payment for skilled nursing and intermediate care services on
14    a  prospective basis.  The amount of the payment rate for all
15    nursing facilities certified  under  the  medical  assistance
16    program  shall  be  prospectively established annually on the
17    basis  of  historical,  financial,   and   statistical   data
18    reflecting  actual  costs  from  prior  years, which shall be
19    applied to the current rate year and updated  for  inflation,
20    except  that  the  capital cost element for newly constructed
21    facilities  shall  be  based  upon  projected  budgets.   The
22    annually established payment rate shall take effect on July 1
23    in 1984  and  subsequent  years.   Rate  increases  shall  be
24    provided  annually  thereafter  on July 1 in 1984 and on each
25    subsequent July 1 in the following years, except that no rate
26    increase and no update for inflation shall be provided on  or
27    after   July   1,  1994  and  before  July  1,  1999,  unless
28    specifically provided for in this Section.    For  facilities
29    licensed by the Department of Public Health under the Nursing
30    Home  Care  Act  as Intermediate Care for the Developmentally
31    Disabled facilities or  Long  Term  Care  for  Under  Age  22
 
                            -2-                LRB9104670DJcd
 1    facilities,  the  rates  taking  effect on July 1, 1998 shall
 2    include an increase of 3%.  For facilities  licensed  by  the
 3    Department  of  Public Health under the Nursing Home Care Act
 4    as  Skilled   Nursing   facilities   or   Intermediate   Care
 5    facilities,  the  rates  taking  effect on July 1, 1998 shall
 6    include an increase of 3% plus  $1.10  per  resident-day,  as
 7    defined  by the Department.  Rates established effective each
 8    July 1 shall govern payment for services rendered  throughout
 9    that  fiscal  year,  except that rates established on July 1,
10    1996 shall be increased by 6.8% for services provided  on  or
11    after  January  1, 1997, and except that for those facilities
12    with  rates  less  than  the  actual,  audited  costs,  rates
13    established on July 1, 1999 shall be  increased  to  no  less
14    than  the  lower  of  the  average  costs  in  the facility's
15    geographic  area  as  defined  by  the  Department   or   the
16    facility's  actual audited, adjusted costs.  In no case shall
17    a facility's July 1, 1999 rate be less than its July 1,  1998
18    rate.   The  repeal  of Article V-E by this amendatory Act of
19    the 91st General Assembly shall have no effect on  the  rates
20    paid  to  facilities. Such rates will be based upon the rates
21    calculated for the year  beginning  July  1,  1990,  and  for
22    subsequent  years  thereafter  shall be based on the facility
23    cost reports for the facility fiscal year ending at any point
24    in time during the previous calendar  year,  updated  to  the
25    midpoint  of the rate year.  The cost report shall be on file
26    with the Department no later than April 1 of the current rate
27    year.  Should the cost report not be on file by April 1,  the
28    Department  shall  base  the  rate  on the latest cost report
29    filed by each skilled care  facility  and  intermediate  care
30    facility,  updated  to the midpoint of the current rate year.
31    In determining rates for services rendered on and after  July
32    1,  1985, fixed time shall not be computed at less than zero.
33    The Department shall not make any alterations of  regulations
34    which  would  reduce  any component of the Medicaid rate to a
 
                            -3-                LRB9104670DJcd
 1    level below what that component would have been utilizing  in
 2    the rate effective on July 1, 1984.
 3        (2)  Shall take into account the actual costs incurred by
 4    facilities  in  providing  services for recipients of skilled
 5    nursing and intermediate  care  services  under  the  medical
 6    assistance program.
 7        (3)  Shall    take   into   account   the   medical   and
 8    psycho-social characteristics and needs of the patients.
 9        (4)  Shall take into account the actual costs incurred by
10    facilities in meeting licensing and  certification  standards
11    imposed  and  prescribed by the State of Illinois, any of its
12    political subdivisions or municipalities and  by  the  United
13    States  Department  of Health, Education and Welfare pursuant
14    to Title XIX of the Social Security Act.
15        The  Department  of  Public  Aid  shall  develop  precise
16    standards for payments to reimburse  nursing  facilities  for
17    any  utilization  of appropriate rehabilitative personnel for
18    the provision of rehabilitative services which is  authorized
19    by  federal regulations, including reimbursement for services
20    provided by qualified therapists or qualified assistants, and
21    which is in accordance with accepted professional  practices.
22    Reimbursement  also  may  be  made  for  utilization of other
23    supportive personnel under appropriate supervision.
24    (Source: P.A. 89-21, eff. 7-1-95; 89-499, eff. 6-28-96; 90-9,
25    eff. 7-1-97; 90-588, eff. 7-1-98.)

26        (305 ILCS 5/Art. V-E rep.)
27        Section 6.  The Illinois Public Aid Code  is  amended  by
28    repealing Article V-E.

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