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Legislative Year: 2023 Change

Bill Detail: HB23-1228

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Title Nursing Facility Reimbursement Rate Setting
Status Governor Signed (05/30/2023)
Bill Subjects
  • Health Care & Health Insurance
House Sponsors J. McCluskie (D)
J. Willford (D)
Senate Sponsors R. Zenzinger (D)
J. Smallwood (R)
House Committee Public and Behavioral Health & Human Services
Senate Committee Appropriations
Date Introduced 03/03/2023

The bill adjusts the supplemental medicaid payment rates a
qualifying nursing facility receives from the department of health care
policy and financing (state department).
Current law limits the annual increase of the general fund share of
the aggregate statewide average of the per diem rate to not more than 3%.
The bill removes this limitation and requires the general fund share be
calculated based on specific percentage increases.
The bill requires the state department to initiate a process no later
than July 1, 2023, to remove the medicare costs from the provider rate
setting by July 1, 2026.
The bill repeals the requirement that only such costs as are
reasonable, necessary, and patient-related be reported for reimbursement
The bill authorizes the state department to require a nursing
facility, as a condition of receiving medicaid funds, to submit any
documentation necessary to ensure the state's interest in transparency,
stability, and sound fiscal stewardship.
As part of developing and implementing a transition plan to
regulate nursing facility reimbursement, the bill requires the state
department to:
  • No later than July 1, 2026, define nursing home
reimbursement and provide payments to nursing facilities;
  • Engage with stakeholders regularly to seek input on any
proposed methodology changes; and
  • From November 1, 2023, to November 1, 2026, submit an
annual report to the joint budget committee of the general
assembly regarding the implementation process.
The bill requires the state department to issue additional
supplemental payments to nursing facility providers with
disproportionately high medicaid utilization, to facilities that are
geographically critical to ensuring access to care, and to facilities that
admit compassionate release individuals from the department of
Effective July 1, 2026, the bill repeals:
  • The requirement that the state department exempt certain
nursing facility providers from the provider fee;
  • The process for providing a wage enhancement
supplemental payment to eligible nursing home providers
that pay their employees a wage of at least $15 per hour;
  • Requirements for issuing additional supplemental payments
to nursing facility providers that meet certain requirements.

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (08/28/2023) (most recent)  
Additional Bill Documents Bill Documents
  • Past bill versions
  • Past fiscal notes
  • Committee activity and documents
  • Bill History
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Votes House and Senate Votes
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