ID H0351

Establishes a new prospective payment methodology for nursing facilities effective July 1, 2021, accounting for patient needs, facility quality of care, reasonable costs, and state budget limitations, subject to legislative approval.

Sets Medicaid provider payment rates at up to 100% of current Medicare rates for primary care codes and 90% for all other procedure codes, with 91% rate for adolescent mental health hospital services.

Authorizes the department to establish value-based payment agreements with providers designed to be cost-neutral or cost-saving and permits pursuit of federal waivers for managed care arrangements.

Requires equitable reduction of net reimbursements for hospital services by $3,100,000 in fiscal year 2020 and $8,720,000 in fiscal year 2021 to reduce general fund needs.

Increases nursing facility assessments by $1,786,000 in fiscal year 2020 and $5,000,000 in fiscal year 2021, with provider rate adjustments to offset the Medicaid share of increases.