HI SB2466

Establishes the Nursing Facility Sustainability Program to create a special fund receiving revenue from a nursing facility sustainability fee, administered by the Department of Human Services.

Imposes a provider fee on nursing facilities effective July 1, 2012, not exceeding 4 percent of net patient service revenue, calculated on a per resident day basis and payable in twelve equal monthly installments.

Exempts nursing facilities with 28 or fewer licensed beds, Hawaii Health Systems Corporation facilities, and continuing care retirement communities from the sustainability fee, subject to federal approval.

Requires at least 88 percent of fee revenue be used to match federal Medicaid funds for enhanced capitated rates to QUEST expanded access health plans, with 12 percent for restoring a 3 percent reimbursement reduction to nursing facilities.

Repeals the program on June 30, 2013, with the special fund provision repealing December 31, 2013; any remaining funds must be returned to nursing facilities within 30 days in the same proportions as collected.