State of Illinois
92nd General Assembly
Legislation

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92_SB0608

 
                                               LRB9203291DJgc

 1        AN ACT in relation to public aid.

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

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

 6        (305 ILCS 5/5-5.4) (from Ch. 23, par. 5-5.4)
 7        Sec.  5-5.4.  Standards of Payment - Department of Public
 8    Aid.  The Department of Public Aid shall develop standards of
 9    payment of skilled nursing and intermediate care services  in
10    facilities providing such services under this Article which:
11        (1)  Provides  for  the  determination  of  a  facility's
12    payment for skilled nursing and intermediate care services on
13    a  prospective basis.  The amount of the payment rate for all
14    nursing facilities certified  under  the  medical  assistance
15    program  shall  be  prospectively established annually on the
16    basis  of  historical,  financial,   and   statistical   data
17    reflecting  actual  costs  from  prior  years, which shall be
18    applied to the current rate year and updated  for  inflation,
19    except  that  the  capital cost element for newly constructed
20    facilities  shall  be  based  upon  projected  budgets.   The
21    annually established payment rate shall take effect on July 1
22    in 1984  and  subsequent  years.   Rate  increases  shall  be
23    provided  annually  thereafter  on July 1 in 1984 and on each
24    subsequent July 1 in the following years, except that no rate
25    increase and no update for inflation shall be provided on  or
26    after   July   1,  1994  and  before  July  1,  2001,  unless
27    specifically provided for in this Section.
28        For facilities  licensed  by  the  Department  of  Public
29    Health  under  the Nursing Home Care Act as Intermediate Care
30    for the Developmentally Disabled facilities or Long Term Care
31    for Under Age 22 facilities, the rates taking effect on  July
 
                            -2-                LRB9203291DJgc
 1    1,  1998  shall  include  an  increase of 3%.  For facilities
 2    licensed by the Department of Public Health under the Nursing
 3    Home Care Act as Skilled Nursing facilities  or  Intermediate
 4    Care  facilities,  the  rates  taking  effect on July 1, 1998
 5    shall include an increase of 3% plus $1.10 per  resident-day,
 6    as defined by the Department.
 7        For  facilities  licensed  by  the  Department  of Public
 8    Health under the Nursing Home Care Act as  Intermediate  Care
 9    for the Developmentally Disabled facilities or Long Term Care
10    for  Under Age 22 facilities, the rates taking effect on July
11    1, 1999 shall include an increase  of  1.6%  plus  $3.00  per
12    resident-day,  as  defined by the Department.  For facilities
13    licensed by the Department of Public Health under the Nursing
14    Home Care Act as Skilled Nursing facilities  or  Intermediate
15    Care  facilities,  the  rates  taking  effect on July 1, 1999
16    shall include an increase of 1.6% and, for services  provided
17    on  or after October 1, 1999, shall be increased by $4.00 per
18    resident-day, as defined by the Department.
19        For facilities  licensed  by  the  Department  of  Public
20    Health  under  the Nursing Home Care Act as Intermediate Care
21    for the Developmentally Disabled facilities or Long Term Care
22    for Under Age 22 facilities, the rates taking effect on  July
23    1,  2000  shall include an increase of 2.5% per resident-day,
24    as defined by the Department.  For facilities licensed by the
25    Department of Public Health under the Nursing Home  Care  Act
26    as   Skilled   Nursing   facilities   or   Intermediate  Care
27    facilities, the rates taking effect on  July  1,  2000  shall
28    include  an  increase of 2.5% per resident-day, as defined by
29    the Department.
30        For facilities  licensed  by  the  Department  of  Public
31    Health  under  the  Nursing  Home Care Act as skilled nursing
32    facilities or intermediate care facilities, the rates  taking
33    effect  on  July  1, 2001 and each subsequent July 1 shall be
34    computed using the most recent cost reports  filed  with  the
 
                            -3-                LRB9203291DJgc
 1    Department  of  Public Aid no later than April 1 of the prior
 2    year. For rates effective July 1, 2001 only, rates  shall  be
 3    the greater of the rate computed for July 1, 2001 or the rate
 4    effective on June 30, 2001.
 5        For  facilities  licensed  by  the  Department  of Public
 6    Health under the Nursing Home Care  Act  as  skilled  nursing
 7    facilities  or  intermediate  care  facilities, a new payment
 8    methodology must be implemented for the nursing component  of
 9    the  rate effective January 1, 2002. The Department of Public
10    Aid shall develop  the  new  payment  methodology  using  the
11    federal  Minimum  Data Set (MDS) as the instrument to collect
12    information  concerning  nursing  home   resident   condition
13    necessary  to  compute  the rate. The new payment methodology
14    must be developed  to  meet  the  unique  needs  of  Illinois
15    nursing  home  residents.  Rates  based  on  the  new payment
16    methodology must be phased in over a 4-year  period  using  a
17    blend   of  the  rate  based  on  the  nursing  rate  payment
18    methodology in effect  on  December  31,  2001  and  the  new
19    payment methodology effective January 1, 2002 as follows:
20             (A)  For  rates  effective  January  1, 2002 through
21        December 31, 2002, the nursing component of the rate must
22        be comprised of a blend of 75% of the rate based  on  the
23        payment  methodology  in  effect on December 31, 2001 and
24        25% of the rate in effect on January 1, 2002.
25             (B)  For rates effective  January  1,  2003  through
26        December 31, 2003, the nursing component of the rate must
27        be  comprised  of a blend of 50% of the rate based on the
28        payment methodology in effect on December  31,  2001  and
29        50% of the rate in effect on January 1, 2002.
30             (C)  For  rates  effective  January  1, 2004 through
31        December 31, 2004, the nursing component of the rate must
32        be comprised of a blend of 25% of the rate based  on  the
33        payment  methodology  in  effect on December 31, 2001 and
34        75% of the rate in effect on January 1, 2002.
 
                            -4-                LRB9203291DJgc
 1             (D)  For  rates  effective  January  1,   2005   and
 2        thereafter,  the  nursing  component  of the rate must be
 3        comprised of 100%  of  the  rate  based  on  the  payment
 4        methodology in effect on January 1, 2002.
 5        Rates  established  effective  each  July  1 shall govern
 6    payment for services rendered throughout  that  fiscal  year,
 7    except  that  rates  established  on  July  1,  1996 shall be
 8    increased by 6.8% for services provided on or  after  January
 9    1,  1997.  Such rates will be based upon the rates calculated
10    for the year beginning July 1, 1990, and for subsequent years
11    thereafter shall be based on the facility  cost  reports  for
12    the  facility  fiscal year ending at any point in time during
13    the previous calendar year, updated to the  midpoint  of  the
14    rate  year.   The  cost  report  shall  be  on  file with the
15    Department no later than April 1 of the  current  rate  year.
16    Should  the  cost  report  not  be  on  file  by April 1, the
17    Department shall base the rate  on  the  latest  cost  report
18    filed  by  each  skilled  care facility and intermediate care
19    facility, updated to the midpoint of the current  rate  year.
20    In  determining rates for services rendered on and after July
21    1, 1985, fixed time shall not be computed at less than  zero.
22    The  Department shall not make any alterations of regulations
23    which would reduce any component of the Medicaid  rate  to  a
24    level  below what that component would have been utilizing in
25    the rate effective on July 1, 1984.
26        (2)  Shall take into account the actual costs incurred by
27    facilities in providing services for  recipients  of  skilled
28    nursing  and  intermediate  care  services  under the medical
29    assistance program.
30        (3)  Shall   take   into   account   the   medical    and
31    psycho-social characteristics and needs of the patients.
32        (4)  Shall take into account the actual costs incurred by
33    facilities  in  meeting licensing and certification standards
34    imposed and prescribed by the State of Illinois, any  of  its
 
                            -5-                LRB9203291DJgc
 1    political  subdivisions  or  municipalities  and  by the U.S.
 2    Department of Health and Human Services pursuant to Title XIX
 3    of the Social Security Act.
 4        The  Department  of  Public  Aid  shall  develop  precise
 5    standards for payments to reimburse  nursing  facilities  for
 6    any  utilization  of appropriate rehabilitative personnel for
 7    the provision of rehabilitative services which is  authorized
 8    by  federal regulations, including reimbursement for services
 9    provided by qualified therapists or qualified assistants, and
10    which is in accordance with accepted professional  practices.
11    Reimbursement  also  may  be  made  for  utilization of other
12    supportive personnel under appropriate supervision.
13    (Source: P.A. 90-9, eff. 7-1-97; 90-588, eff. 7-1-98;  91-24,
14    eff. 7-1-99; 91-712, eff. 7-1-00.)

15        Section  99.  Effective date.  This Act takes effect upon
16    becoming law.

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