HOUSE OF REPRESENTATIVES
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE NURSING FACILITY SUSTAINABILITY PROGRAM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Act 156, Session Laws of Hawaii 2012, as amended by section 2 of Act 142, Session Laws of Hawaii 2013, is amended by amending section 2 as follows:
1. By amending subsection (c) of section -4, Hawaii Revised Statutes, to read:
"(c) Revenue from the nursing facility sustainability fee shall be used exclusively as follows:
(1) No less than eighty-eight per cent of the revenue from the nursing facility sustainability fee shall be used to match federal medicaid funds, with the combined total to be used to enhance capitated rates to medicaid managed care health plans for the purpose of increasing medicaid payments to private nursing facilities;
(2) Twelve per cent of the revenue from the nursing facility sustainability fee may be used by the department for other departmental purposes; and
(3) All moneys remaining in the special fund
on December 30, [
2015, shall be
distributed to nursing facilities within thirty days in the same proportions as
received from the nursing facilities."
2. By amending section -10, Hawaii Revised Statutes, to read:
"§ -10 Enhanced rates to medicaid managed care health plans.
In accordance with title 42 Code of
Federal Regulations section 438, the department shall use revenues from
the nursing facility sustainability fee and federal matching funds to
enhance the capitated rates paid to medicaid managed care health plans
for the state fiscal year [
2013-2014] 2014-2015 consistent with
the following objectives:
(1) The rate enhancement shall be used exclusively for increasing reimbursements to private nursing facilities to support the availability of services and to ensure access to care to the medicaid managed care health plan enrollees;
(2) The rate enhancement shall be made part of the monthly capitated rates by the department to medicaid managed care health plans, which shall provide documentation to the department and the nursing facility trade associations located in Hawaii certifying that the revenues received under paragraph (1) are used in accordance with this section;
(3) The rate enhancement shall be actuarially sound and approved by the federal government for federal fund participation; and
(4) The department shall modify the fee-for-service reimbursement rates of the nursing facilities to recognize the medicaid portion of the nursing facility sustainability fee as an additional cost of serving medicaid patients, and to provide a uniform percentage increase in pre-existing facility-specific rates."
3. By amending subsection (a) of section -13, Hawaii Revised Statutes, to read:
"(a) Collection of the nursing facility sustainability fee under section -5 shall be discontinued if:
(1) The waiver in section -7 or the enhanced capitation rates in section -10 have not been approved by the Centers for Medicare and Medicaid Services;
(2) The department reduces funding for
nursing facility services below the state appropriation in effect on June 30, [
(3) The department or any other state agency uses the money in the special fund for any use other than the uses permitted pursuant to this chapter; or
(4) Federal financial participation to match the nursing facility sustainability fee becomes unavailable under federal law. In such case, the department shall terminate the collection of the fee beginning on the effective date of the federal statutory, regulatory, or interpretive change."
SECTION 2. Act 156, Session Laws of Hawaii 2012, as amended by section 3 of Act 142, Session Laws of Hawaii 2013, is amended by amending section 5 to read as follows:
"SECTION 5. This Act shall take effect on July 1, 2012, and shall be repealed on June 30, [
2014;] 2015; provided
that section [ ‑4(c),] -4, Hawaii Revised Statutes, established by section 2 of
this Act, shall be repealed on December 31, [ 2014.] 2015."
SECTION 3. There is appropriated out of the nursing facility sustainability program special fund the sum of $ or so much thereof as may be necessary for fiscal year 2014-2015 to be used for the purposes of the nursing facility sustainability program special fund.
The sum appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2030.
Nursing Facility Sustainability Program; Special Fund; Appropriation
Continues the Nursing Facility Sustainability Program by extending the sunset date of the Act to June 30, 2015, updating the referral dates in the statute, and appropriating funds from the Nursing Facility Sustainability Program Special Fund for fiscal year 2014-2015. Effective July 1, 2030. (HB2294 HD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.