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142.361 Provider assessment on nursing facility services -- Disposition of
revenues -- Administrative regulations -- Application to amend waiver -Circumstances rendering provisions void.
(1)
(a)
(b)
(c)
(d)
A provider assessment is hereby imposed on nursing facility services as
provided in this subsection.
The base for the assessment shall be determined on July 1 of each year,
beginning on July 1, 2004, by dividing total gross revenues received by all
nursing facilities for nursing facility services during the prior fiscal year by
the total patient days for all nursing facilities attributable to nursing facility
services during the prior fiscal year. The resulting amount shall be the
base for the assessment imposed under this subsection, and shall be
called the "average daily revenue per patient bed."
The assessment shall be imposed as follows:
1. a.
At a uniform rate per non-Medicare patient day of up to one
percent (1%) of the average daily revenue per patient bed
applied to actual non-Medicare patient bed days by each
nursing facility on or after July 1, 2004, for the provision of
nursing facility services that are provided at a non-hospital
based facility:
i.
Containing licensed intermediate care facility beds as of
eptember 1, 2005; and
ii.
With a facility total bed capacity of sixty (60) or fewer
beds.
b.
This rate shall apply for qualifying providers beginning July 1,
2004. Any tax liability for tax periods beginning on or after July
1, 2004, attributable to the imposition of the levy under KRS
142.307 or the levy imposed by 2004 Ky. Acts ch. 142, sec. 1,
shall be retroactively recalculated at the rate provided in this
subsection, and no penalties or interest shall apply to any
outstanding amounts.
2.
At a uniform rate per non-Medicare patient day of up to two percent
(2%) of the average daily revenue per patient bed applied to actual
non-Medicare patient bed days by each nursing facility on or after
July 1, 2004, for the provision of nursing facility services that are
provided at a hospital-based nursing facilities; and
3.
At a rate per non-Medicare patient day not to exceed six percent
(6%) of the average daily revenue per patient bed applied to actual
non-Medicare patient bed days by each nursing facility on or after
July 1, 2004. This rate shall not apply to any provider assessed
under subparagraphs 1. or 2. of this paragraph.
4.
Notwithstanding the provisions of subparagraphs 1. to 3. of this
paragraph, no provider assessment shall be levied under this
subsection on a state veterans' nursing home on or after July 1,
2004.
The rates established by paragraph (c) of this subsection are maximum
rates. The rates may be adjusted annually on July 1 of each year by the
(2)
(3)
(4)
(5)
(6)
(7)
Department for Medicaid Services. Notification of any rate change shall
be provided to the Department of Revenue and to taxpayers in writing at
least thirty (30) days prior to the new rate going into effect.
The assessment imposed under subparagraph 3. of paragraph (c) of
subsection (1) of this section is not required to be uniform, and the rate of
assessment per non-Medicare day may be variable based upon a facilitys
total annual census days if deemed an acceptable waivered class by the
Centers for Medicare and Medicaid Services.
All revenues collected pursuant to subsection (1) of this section shall be
deposited in the Medical Assistance Revolving Trust Fund (MART) and
transferred on a quarterly basis to the Department for Medicaid Services.
The Department for Medicaid Services shall promulgate administrative
regulations to ensure that a portion of the revenues generated from the
assessment imposed by subsection (1) of this section and federal matching
funds be used to increase reimbursement rates for nursing facilities. The
regulations shall, at a minimum:
(a) Provide that the rate increases shall be used to fully phase in those
providers whose current rates are less than the Medicaid price-based
rates;
(b) Correct for inflation adjustments for the past two (2) years; and
(c) Re-base the rates to recognize current wage and benefit levels in the
industry.
The remaining revenue generated by the assessments levied under subsection
(1) of this section and federal matching funds shall be used to supplement the
medical assistance related general fund appropriations of the Department for
Medicaid Services. Notwithstanding KRS 48.500 and 48.600, the MART fund
shall be exempt from any state budget reduction acts.
(a) On or before July 1, 2004, the Cabinet for Health and Family Services,
Department for Medicaid Services shall submit an application to the
Federal Centers for Medicare and Medicaid Services to request a waiver
of the uniformity tax requirement pursuant to 42 C.F.R. sec. 433.68(e)(2).
If an application to the Centers for Medicare and Medicaid Services for a
waiver of the uniformity requirements is denied, the Department for
Medicaid Services may resubmit the application with appropriate changes
to receive an approved waiver.
(b) On or before July 1, 2005, the Cabinet for Health and Family Services,
Department for Medicaid Services, shall submit an application to the
Federal Centers for Medicare and Medicaid Services to amend the waiver
of the uniformity tax requirement granted in 2004. If the application to
Centers for Medicare and Medicaid Services for an amendment to the
previously granted waiver is denied, the Department for Medicaid
Services may resubmit the application with appropriate changes to
receive an approved amendment to the waiver.
Assessments imposed pursuant to this section shall begin on July 1, 2004, but
are not due and payable until rates are increased as provided in subsection (5)
of this section.
(8)
The provisions of this section shall be considered null and void if the uniformity
waiver or plan amendment to increase rates is not approved by the Centers for
Medicare and Medicaid Services.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 73, sec. 3, effective June 20, 2005. -- Created
2004 Ky. Acts ch. 142, sec. 1, effective April 21, 2004.
Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85,
95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory
references to agencies and officers whose names have been changed in 2005
legislation confirming the reorganization of the executive branch. Such a
correction has been made in this section.
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