Second Regular Session Seventy-third General Assembly STATE OF COLORADO INTRODUCED LLS NO. 22-0850.01 Jane Ritter x4342 HOUSE BILL 22-1247 House Committees Senate Committees Public & Behavioral Health & Human Services A BILL FOR AN ACT C ONCERNING REQUIREMENTS FOR ADDITIONAL SUPPLEMENTAL101 PAYMENTS FOR NURSING FACILITY PROVIDERS , AND, IN102 CONNECTION THEREWITH , MAKING AN APPROPRIATION .103 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov/ .) Joint Budget Committee. The bill directs the department of health care policy and financing (department) to do the following, with respect to nursing facility providers (nursing facilities): ! Issue additional supplemental payments as directed for the 2021-22 state fiscal year; HOUSE SPONSORSHIP Herod and McCluskie, Ransom SENATE SPONSORSHIP Hansen and Rankin, Moreno Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. ! Establish reporting and result tracking requirements necessary to administer additional supplemental funding; ! Pursue federal matching funds to reduce the state share of costs to the maximum amount possible; and ! Engage with stakeholders to produce a report including ways to improve methodology, practices regarding care and services to compassionate release individuals from the department of corrections, and funding for nursing facilities. The department shall submit the report to the joint budget committee and committees of the general assembly on or before November 1, 2022. The bill grants the department authority to promulgate rules as necessary for implementation of the payments and their supporting requirements. The supplemental payments and their supporting requirements are repealed, effective July 1, 2023. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, add 25.5-6-210 as2 follows:3 25.5-6-210. Additional supplemental payments - nursing4 facilities - funding methodology - reporting requirement - rules -5 repeal. (1) N OTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE6 CONTRARY AND SUBJECT TO AVAILABLE APPROPRIATIONS , FOR THE7 PURPOSES OF REIMBURSING A MEDICAID -CERTIFIED CLASS I NURSING8 FACILITY PROVIDER, THE STATE DEPARTMENT MAY ISSUE ADDITIONAL9 SUPPLEMENTAL PAYMENTS AS FOLLOWS :10 (a) F OR THE 2021-22 STATE FISCAL YEAR, FUNDS APPROPRIATED11 BY THE GENERAL ASSEMBLY ARE FOR THE PURPOSES OF SUPPORTING12 NURSING FACILITY PROVIDERS EXPERIENCING INCREASED STAFFING COSTS13 RESULTING FROM THE COVID-19 PANDEMIC, NURSING FACILITY14 PROVIDERS WITH HIGH MEDICAID UTILIZATION RATES , OR NURSING15 FACILITY PROVIDERS CURRENTLY SERVING INDIVIDUALS WITH COMPLEX16 HB22-1247-2- NEEDS.1 (b) P AYMENTS MADE IN ADDITION TO THOSE SPECIFIED IN2 SUBSECTION (1)(a) OF THIS SECTION MAY ALSO BE MADE TO NURSING3 FACILITY PROVIDERS THAT ACCEPT NEW ADMISSIONS OF4 MEDICAID-ENROLLMENT INDIVIDUALS WITH COMPLEX NEEDS .5 (2) T HE STATE DEPARTMENT SHALL ESTABLISH REPORTING AND6 RESULT TRACKING REQUIREMENTS NECESSARY TO ADMINISTER THE7 FUNDING OUTLINED IN THIS SECTION. THE STATE DEPARTMENT MAY DENY8 OR RECOUP FUNDING FROM NURSING FACILITY PROVIDERS THAT ARE9 NONCOMPLIANT WITH REPORTING REQUIREMENTS OR IF FUNDING IS USED10 FOR PURPOSES OUTSIDE THE INTENT OF SUPPORTING AND STABILIZING11 NURSING FACILITY PROVIDERS THAT ARE MEDICAID PROVIDERS .12 (3) T HE STATE DEPARTMENT SHALL EVALUATE PROVIDER13 OUTCOMES, INCLUDING CHANGES IN CAPACITY , ASSOCIATED WITH THE14 PAYMENT OF SUPPLEMENTAL MONEY TO NURSING FACILITY PROVIDERS .15 T HE STATE DEPARTMENT SHALL UTILIZE NURSING FACILITY PROVIDERS '16 FINANCIAL STATEMENTS AND LABOR AND WAGE RECORDS TO EVALUATE17 THE RESULTS OF PAYMENTS.18 (4) (a) T HE STATE DEPARTMENT SHALL PURSUE FEDERAL19 MATCHING FUNDS. IF FEDERAL MATCHING FUNDS ARE UNAVAILABLE FOR20 ANY REASON, PAYMENTS OUTLINED IN THIS SECTION MAY BE REDUCED OR21 RESTRICTED, SUBJECT TO AVAILABLE FUNDING.22 (b) F OR THE PURPOSES OF FEDERAL UPPER PAYMENT LIMIT23 CALCULATIONS, THE STATE DEPARTMENT SHALL PURSUE FEDERAL24 MATCHING FUNDS FOR PAYMENTS MADE PURSUANT TO THIS SECTION BUT25 ONLY AFTER SECURING FEDERAL MATCHING FUNDS FOR PAYMENTS26 OUTLINED IN SECTIONS 25.5-6-203 (2) AND 25.5-6-208.27 HB22-1247 -3- (5) (a) SUPPLEMENTAL PAYMENTS MADE TO NURSING FACILITY1 PROVIDERS PURSUANT TO THIS SECT ION MUST BE DETERMINED BASED ON2 THE MOST RECENT AVAILABLE DATA .3 (b) P URSUANT TO RULES PROMULGATED BY THE STATE4 DEPARTMENT, PAYMENTS RECEIVED PURSUANT TO THIS SECTION MUST5 OFFSET COSTS REPORTED ON THE ANNUAL COST REPORT WHEN6 CALCULATING NURSING FACILITY PROVIDER PER DIEM REIMBURSEMENT .7 (6) T O RECEIVE AN ADDITIONAL PAYMENT PURSUANT TO8 SUBSECTION (1)(b) OF THIS SECTION, A NURSING FACILITY PROVIDER9 SHALL COMMIT TO ADDITIONAL RESPONSIBILITY BY WORKING TO10 DISCHARGE MEDICAID MEMBERS FROM A HOSPITAL INTO THE NURSING11 FACILITY, SERVE MEDICAID MEMBERS WITH BEHAVIORAL HEALTH NEEDS ,12 OR ACCEPT COMPASSIONATE RELEASE INDIVIDUALS FROM THE13 DEPARTMENT OF CORRECTIONS .14 (7) O N OR BEFORE NOVEMBER 1, 2022, THE STATE DEPARTMENT15 SHALL ENGAGE WITH STAKEHOLDERS AND SUBMIT A REPORT AND16 RECOMMENDATIONS TO THE JOINT BUDGET COMMITTEE , THE HEALTH AND17 HUMAN SERVICES COMMITTEE OF THE SENATE , AND THE PUBLIC AND18 BEHAVIORAL HEALTH AND HUMAN SERVICES COMMI TTEE OF THE HOUSE OF19 REPRESENTATIVES, OR ANY SUCCESSOR COMMITTEES , CONCERNING20 SUGGESTED CHANGES FOR PERMANENTLY CHANGING MEDICAID NURSING21 FACILITY PROVIDER REIMBURSEMENT POLICY IN COLORADO TO PRIORITIZE22 QUALITY, SUSTAINABILITY, AND SOUND FISCAL STEWARDSHIP TO AVOID23 FURTHER ONE-TIME CASH INFUSIONS. THE REPORT MUST INCLUDE24 CHANGES THAT CAN BE MADE TO AFFIRM A NURSING FACILITY PROVIDER 'S25 COMMITMENT TO ACCOUNTABILITY AND MUST INCLUDE , AT A MINIMUM:26 (a) I NFECTION CONTROL AND CULTURE CHANGE PRACTICES ,27 HB22-1247 -4- INCLUDING:1 (I) S INGLE OCCUPANCY ROOMS ;2 (II) S MALLER FACILITY MODELS; AND3 (III) I NNOVATIVE FACILITY MODELS;4 (b) B EHAVIORAL HEALTH NEEDS ;5 (c) P RACTICES REGARDING INDIVIDUALS WHO HAVE COMPLEX6 NEEDS REQUIRING HOSPITAL DISCHARGE ;7 (d) P RACTICES REGARDING CARE AND SERVICES TO8 COMPASSIONATE RELEASE INDIVIDUALS FROM THE DEPARTMENT OF9 CORRECTIONS;10 (e) O PTIONS FOR DIVERSIFIED FUNDING STREAMS TO ENSURE11 CONTINUITY OF SERVICES;12 (f) C OMPETITIVE STAFFING PRACTICES;13 (g) T HE TIMELINE AND COSTS ASSOCIATED WITH IMPLEMENTING14 THE RECOMMENDED CHANGES , INCLUDING THE IMPACT ON NURSING15 FACILITY PROVIDER RATES; AND16 (h) I DENTIFICATION OF THE AMOUNT OF SUPPLEMENTAL PAYMENTS17 TO EACH NURSING FACILITY PROVIDER AND THE OUTCOME EVALUATION18 REQUIRED PURSUANT TO SUBSECTION (3) OF THIS SECTION.19 (8) T HE STATE DEPARTMENT SHALL MEET WITH THE FOLLOWING20 STAKEHOLDERS, AT A MINIMUM, TO SEEK INPUT ON ANY PROPOSED21 REIMBURSEMENT METHODOLOGY CHANGES AND REPORT AS REQUIRED BY22 THIS SECTION:23 (a) A REPRESENTATIVE FROM AN URBAN NURSING FACILITY24 PROVIDER;25 (b) A REPRESENTATIVE FROM A RURAL NURSING FACILITY26 PROVIDER;27 HB22-1247 -5- (c) A REPRESENTATIVE FROM A NURSING FACILITY TRADE1 ORGANIZATION;2 (d) A REPRESENTATIVE FROM A NURSING FACILITY WITH A HIGH3 MEDICAID UTILIZATION RATE; AND4 (e) A REPRESENTATIVE FROM A NURSING FACILITY THAT SERVES5 INDIVIDUALS WITH COMPLEX NEEDS .6 (9) T HE STATE BOARD SHALL PROMULGATE ANY RULES NECESSARY7 TO IMPLEMENT THIS SECTION.8 (10) T HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2023.9 SECTION 2. Appropriation. (1) For the 2021-22 state fiscal10 year, $17,000,500 is appropriated to the department of health care policy11 and financing for use by medical services premiums. This appropriation12 is from the general fund and is subject to the "(M)" notation as defined in13 the annual general appropriation act for the same fiscal year. To14 implement this act, the department may use this appropriation for medical15 and long-term care services for Medicaid-eligible individuals.16 (2) For the 2021-22 state fiscal year, the general assembly17 anticipates that the department of health care policy and financing will18 receive $10,000,500 in federal funds to implement this act. The19 appropriation in subsection (1) of this section is based on the assumption20 that the department will receive this amount of federal funds to be used21 for medical and long-term care services for Medicaid-eligible individuals.22 (3) Any money appropriated in subsection (1) of this section not23 expended prior to July 1, 2022, is further appropriated to the department24 for the 2022-23 state fiscal year for the same purpose.25 SECTION 3. Safety clause. The general assembly hereby finds,26 HB22-1247 -6- determines, and declares that this act is necessary for the immediate1 preservation of the public peace, health, or safety.2 HB22-1247 -7-