Florida Senate - 2009 CONFERENCE COMMITTEE AMENDMENT Bill No. CS/SB 8-A, 1st Eng. Barcode 681414 LEGISLATIVE ACTION Senate . House . . . Floor: AD/2R . 01/14/2009 10:23 AM . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Conference Committee on CS/SB 8-A, 1st Eng. recommended the following: 1 Senate Conference Committee Amendment (with title 2 amendment) 3 4 Delete everything after the enacting clause 5 and insert: 6 Section 1. Section 409.9082, Florida Statutes, is created 7 to read: 8 409.9082 Quality assessment on nursing home facility 9 providers; exemptions; purpose; federal approval required; 10 remedies.— 11 (1) As used in this section, the term: 12 (a) “Net patient service revenue” means gross revenues from 13 services provided to nursing home facility patients, less 14 reductions from gross revenue resulting from an inability to 15 collect payment of charges. Such reductions include bad debts; 16 contractual adjustments; uncompensated care; administrative, 17 courtesy, and policy discounts and adjustments; and other such 18 revenue deductions. 19 (b) “Nursing home facility” means a facility licensed under 20 part II of chapter 400. 21 (c) “Resident day” means a calendar day of care provided to 22 a nursing home facility resident, including the day of admission 23 and excluding the day of discharge, except that, when admission 24 and discharge occur on the same day, 1 day of care is deemed to 25 exist. 26 (d) “Medicare Part A resident days” means those patient 27 days funded by the Medicare program or by a Medicare Advantage 28 or special needs plan. 29 (e) “Skilled nursing facility units of acute care 30 hospitals” means the Medicare-certified skilled nursing beds 31 located in hospitals licensed under chapter 395. 32 (2) Effective April 1, 2009, there is imposed upon each 33 nursing home facility a quality assessment. The aggregated 34 amount of assessments for all nursing home facilities in a given 35 year shall be an amount not exceeding 5.5 percent of the total 36 aggregate net patient service revenue of assessed facilities. 37 The agency shall calculate the quality assessment rate annually 38 on a per-resident-day basis, exclusive of those resident days 39 funded by the Medicare program, as reported by the facilities. 40 The per-resident-day assessment rate shall be uniform except as 41 prescribed in subsection (3). Each facility shall report monthly 42 to the agency its total number of resident days, exclusive of 43 Medicare Part A resident days, and shall remit an amount equal 44 to the assessment rate times the reported number of days. The 45 agency shall collect, and each facility shall pay, the quality 46 assessment each month. The agency shall collect the assessment 47 from nursing home facility providers by no later than the 15th 48 of the next succeeding calendar month. The agency shall notify 49 providers of the quality assessment and provide a standardized 50 form to complete and submit with payments. The collection of the 51 nursing home facility quality assessment shall commence no 52 sooner than 5 days after the agency’s initial payment of the 53 Medicaid rates containing the elements prescribed in subsection 54 (4). Nursing home facilities may not create a separate line-item 55 charge for the purpose of passing through the assessment to 56 residents. 57 (3)(a) The following nursing home facility providers are 58 exempt from the quality assessment: 59 1. Nursing home facilities that are licensed under part II 60 of chapter 400 and located on the campus of continuing care 61 retirement communities operating pursuant to a certificate of 62 authority under chapter 651; 63 2. Nursing home facilities that have 45 or fewer beds; and 64 3. The skilled nursing facility units of acute care 65 hospitals licensed by the agency under chapter 395. 66 (b) The agency may apply a lower quality assessment rate to 67 high-volume Medicaid nursing facilities. The agency shall apply 68 the lower rate to the fewest number of such facilities necessary 69 to meet federal Medicaid waiver requirements. 70 (c) The agency may apply a lower quality assessment rate to 71 high-patient-volume nursing facilities. The agency shall apply 72 the lower rate to the fewest number of such facilities necessary 73 to meet federal Medicaid waiver requirements. 74 (4) The purpose of the nursing home facility quality 75 assessment is to ensure continued quality of care. Collected 76 assessment funds shall be used to obtain federal financial 77 participation through the Medicaid program to make Medicaid 78 payments for nursing home facility services up to the amount of 79 nursing home facility Medicaid rates as calculated in accordance 80 with the approved state Medicaid plan in effect on December 31, 81 2007. The quality assessment and federal matching funds shall be 82 used exclusively for the following purposes and in the following 83 order of priority: 84 (a) To reimburse the Medicaid share of the quality 85 assessment as a pass-through, Medicaid-allowable cost; 86 (b) To increase to each nursing home facility’s Medicaid 87 rate, as needed, an amount that restores the rate reductions 88 implemented January 1, 2008, and January 1, 2009; 89 (c) To increase to each nursing home facility’s Medicaid 90 rate, as needed, an amount that restores any rate reductions for 91 the 2008-2009 fiscal year; and 92 (d) To increase each nursing home facility’s Medicaid rate 93 that accounts for the portion of the total assessment not 94 included in paragraphs (a)-(c) which begins a phase-in to a 95 pricing model for the operating cost component. 96 (5) The agency shall seek necessary federal approval in the 97 form of waivers and state plan amendments in order to implement 98 the provisions of this section. 99 (6) The quality assessment shall terminate and the agency 100 shall discontinue the imposition, assessment, and collection of 101 the nursing facility quality assessment if any of the following 102 occur: 103 (a) The agency does not obtain necessary federal approval 104 for the nursing home facility quality assessment or the payment 105 rates required by subsection (4); or 106 (b) The weighted average Medicaid rate paid to nursing home 107 facilities is reduced below the weighted average Medicaid rate 108 to nursing home facilities in effect on December 31, 2008, plus 109 any future annual amount of the quality assessment and the 110 applicable matching federal funds. 111 Upon termination of the quality assessment, all collected 112 assessment revenues, less any amounts expended by the agency, 113 shall be returned on a pro rata basis to the nursing facilities 114 that paid them. 115 (7) The agency may seek any of the following remedies for 116 failure of any nursing home facility provider to pay its 117 assessment timely: 118 (a) Withholding any medical assistance reimbursement 119 payments until such time as the assessment amount is recovered; 120 (b) Suspension or revocation of the nursing home facility 121 license; and 122 (c) Imposition of a fine of up to $1,000 per day for each 123 delinquent payment, not to exceed the amount of the assessment. 124 (8) The agency shall adopt rules necessary to administer 125 this section. 126 Section 2. This act shall take effect upon becoming a law. 127 128 ================= T I T L E A M E N D M E N T ================ 129 And the title is amended as follows: 130 Delete everything before the enacting clause 131 and insert: 132 A bill to be entitled 133 An act relating to Medicaid; creating s. 409.9082, F.S.; 134 providing definitions; providing for a quality assessment to be 135 imposed upon nursing home facility providers; requiring the 136 Agency for Health Care Administration to calculate the quality 137 assessment rate annually; providing requirements for reporting 138 and collecting the assessment; exempting certain nursing home 139 facility providers from the assessment; providing for certain 140 providers to pay a lower assessment; specifying the purposes of 141 the assessment and an order of priority; requiring that the 142 agency seek federal authorization to implement the act; 143 specifying circumstances requiring discontinuance of the quality 144 assessment; authorizing the agency to impose certain penalties 145 against providers that fail to pay the assessment; requiring the 146 agency to adopt rules; providing an effective date.