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         409.9082Quality 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.