Explanation:
(This amendment provides $5.9 million from the general fund and an equal amount of federal Medicaid matching funds the second year to remove the fiscal year 2010 component of a two-year reduction in the inflation rate provided to nursing facilities implemented on July 1, 2008. This reduction was intended to cap the nursing facility Medicaid inflation update to no more than two percent. For ease of administration, language implementing the inflation cap required the Department of Medical Assistance Services to reduce direct and indirect care payment rates by 1.329 percent below the normally calculated rates. The state fiscal year 2010 component of this reduction ($11.7 million in total funds) is inconsistent with the language contained in the introduced budget which eliminates the entire inflation update for nursing facilities and effectively represents a double cut to Medicaid payments for nursing facilities.) |