ENROLLED 2009 Legislature CS for SB 8-A, 2nd Engrossed 20098Aer 1 2 An act relating to Medicaid; creating s. 409.9082, 3 F.S.; providing definitions; providing for a quality 4 assessment to be imposed upon nursing home facility 5 providers; requiring the Agency for Health Care 6 Administration to calculate the quality assessment 7 rate annually; providing requirements for reporting 8 and collecting the assessment; exempting certain 9 nursing home facility providers from the assessment; 10 providing for certain providers to pay a lower 11 assessment; specifying the purposes of the assessment 12 and an order of priority; requiring that the agency 13 seek federal authorization to implement the act; 14 specifying circumstances requiring discontinuance of 15 the quality assessment; authorizing the agency to 16 impose certain penalties against providers that fail 17 to pay the assessment; requiring the agency to adopt 18 rules; providing an effective date. 19 20 Be It Enacted by the Legislature of the State of Florida: 21 22 Section 1. Section 409.9082, Florida Statutes, is created 23 to read: 24 409.9082 Quality assessment on nursing home facility 25 providers; exemptions; purpose; federal approval required; 26 remedies.— 27 (1) As used in this section, the term: 28 (a) “Net patient service revenue” means gross revenues from 29 services provided to nursing home facility patients, less 30 reductions from gross revenue resulting from an inability to 31 collect payment of charges. Such reductions include bad debts; 32 contractual adjustments; uncompensated care; administrative, 33 courtesy, and policy discounts and adjustments; and other such 34 revenue deductions. 35 (b) “Nursing home facility” means a facility licensed under 36 part II of chapter 400. 37 (c) “Resident day” means a calendar day of care provided to 38 a nursing home facility resident, including the day of admission 39 and excluding the day of discharge, except that, when admission 40 and discharge occur on the same day, 1 day of care is deemed to 41 exist. 42 (d) “Medicare Part A resident days” means those patient 43 days funded by the Medicare program or by a Medicare Advantage 44 or special needs plan. 45 (e) “Skilled nursing facility units of acute care 46 hospitals” means the Medicare-certified skilled nursing beds 47 located in hospitals licensed under chapter 395. 48 (2) Effective April 1, 2009, there is imposed upon each 49 nursing home facility a quality assessment. The aggregated 50 amount of assessments for all nursing home facilities in a given 51 year shall be an amount not exceeding 5.5 percent of the total 52 aggregate net patient service revenue of assessed facilities. 53 The agency shall calculate the quality assessment rate annually 54 on a per-resident-day basis, exclusive of those resident days 55 funded by the Medicare program, as reported by the facilities. 56 The per-resident-day assessment rate shall be uniform except as 57 prescribed in subsection (3). Each facility shall report monthly 58 to the agency its total number of resident days, exclusive of 59 Medicare Part A resident days, and shall remit an amount equal 60 to the assessment rate times the reported number of days. The 61 agency shall collect, and each facility shall pay, the quality 62 assessment each month. The agency shall collect the assessment 63 from nursing home facility providers by no later than the 15th 64 of the next succeeding calendar month. The agency shall notify 65 providers of the quality assessment and provide a standardized 66 form to complete and submit with payments. The collection of the 67 nursing home facility quality assessment shall commence no 68 sooner than 5 days after the agency’s initial payment of the 69 Medicaid rates containing the elements prescribed in subsection 70 (4). Nursing home facilities may not create a separate line-item 71 charge for the purpose of passing through the assessment to 72 residents. 73 (3)(a) The following nursing home facility providers are 74 exempt from the quality assessment: 75 1. Nursing home facilities that are licensed under part II 76 of chapter 400 and located on the campus of continuing care 77 retirement communities operating pursuant to a certificate of 78 authority under chapter 651; 79 2. Nursing home facilities that have 45 or fewer beds; and 80 3. The skilled nursing facility units of acute care 81 hospitals licensed by the agency under chapter 395. 82 (b) The agency may apply a lower quality assessment rate to 83 high-volume Medicaid nursing facilities. The agency shall apply 84 the lower rate to the fewest number of such facilities necessary 85 to meet federal Medicaid waiver requirements. 86 (c) The agency may apply a lower quality assessment rate to 87 high-patient-volume nursing facilities. The agency shall apply 88 the lower rate to the fewest number of such facilities necessary 89 to meet federal Medicaid waiver requirements. 90 (4) The purpose of the nursing home facility quality 91 assessment is to ensure continued quality of care. Collected 92 assessment funds shall be used to obtain federal financial 93 participation through the Medicaid program to make Medicaid 94 payments for nursing home facility services up to the amount of 95 nursing home facility Medicaid rates as calculated in accordance 96 with the approved state Medicaid plan in effect on December 31, 97 2007. The quality assessment and federal matching funds shall be 98 used exclusively for the following purposes and in the following 99 order of priority: 100 (a) To reimburse the Medicaid share of the quality 101 assessment as a pass-through, Medicaid-allowable cost; 102 (b) To increase to each nursing home facility’s Medicaid 103 rate, as needed, an amount that restores the rate reductions 104 implemented January 1, 2008, and January 1, 2009; 105 (c) To increase to each nursing home facility’s Medicaid 106 rate, as needed, an amount that restores any rate reductions for 107 the 2008-2009 fiscal year; and 108 (d) To increase each nursing home facility’s Medicaid rate 109 that accounts for the portion of the total assessment not 110 included in paragraphs (a)-(c) which begins a phase-in to a 111 pricing model for the operating cost component. 112 (5) The agency shall seek necessary federal approval in the 113 form of waivers and state plan amendments in order to implement 114 the provisions of this section. 115 (6) The quality assessment shall terminate and the agency 116 shall discontinue the imposition, assessment, and collection of 117 the nursing facility quality assessment if any of the following 118 occur: 119 (a) The agency does not obtain necessary federal approval 120 for the nursing home facility quality assessment or the payment 121 rates required by subsection (4); or 122 (b) The weighted average Medicaid rate paid to nursing home 123 facilities is reduced below the weighted average Medicaid rate 124 to nursing home facilities in effect on December 31, 2008, plus 125 any future annual amount of the quality assessment and the 126 applicable matching federal funds. 127 Upon termination of the quality assessment, all collected 128 assessment revenues, less any amounts expended by the agency, 129 shall be returned on a pro rata basis to the nursing facilities 130 that paid them. 131 (7) The agency may seek any of the following remedies for 132 failure of any nursing home facility provider to pay its 133 assessment timely: 134 (a) Withholding any medical assistance reimbursement 135 payments until such time as the assessment amount is recovered; 136 (b) Suspension or revocation of the nursing home facility 137 license; and 138 (c) Imposition of a fine of up to $1,000 per day for each 139 delinquent payment, not to exceed the amount of the assessment. 140 (8) The agency shall adopt rules necessary to administer 141 this section. 142 Section 2. This act shall take effect upon becoming a law.