H.B. 749 Summary

• Extends the nursing facility sustainability fee program from June 30, 2019 to June 30, 2021, allowing continued collection of provider fees from nursing facilities to draw down federal Medicaid funds.

• Increases the maximum nursing facility sustainability fee from 4% to 5.5% of net patient service revenue, with per resident daily fees capped at $20 (or $9 for facilities meeting certain exceptions), up from $13.46 and $5.85 respectively.

• Allows fee revenues to be used for quality incentive payments in addition to matching federal Medicaid funds for enhanced capitated rates to health plans for nursing facility reimbursements.

• Requires Medicaid managed care health plans to make payments to nursing facilities within 30 calendar days of receiving monthly capitation rates from the department.

• Appropriates $21 million for fiscal years 2019-2020 and 2020-2021 from the nursing facility sustainability program special fund for purposes consistent with the program's authorized uses.