Second Regular Session Seventy-third General Assembly STATE OF COLORADO REVISED This Version Includes All Amendments Adopted on Second Reading in the Second House LLS NO. 22-0850.01 Jane Ritter x4342 HOUSE BILL 22-1247 House Committees Senate Committees Public & Behavioral Health & Human Services Appropriations Appropriations 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; SENATE 2nd Reading Unamended April 1, 2022 HOUSE 3rd Reading Unamended March 17, 2022 HOUSE Amended 2nd Reading March 16, 2022 HOUSE SPONSORSHIP Herod and McCluskie, Ransom, Bernett, Bird, Bockenfeld, Boesenecker, Caraveo, Cutter, Duran, Esgar, Exum, Froelich, Gonzales-Gutierrez, Hooton, Jodeh, Kennedy, Kipp, Lindsay, Lontine, McCormick, McLachlan, Michaelson Jenet, Mullica, Ricks, Soper, Titone, Valdez A., Valdez D., Woodrow, Young 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 SHALL ISSUE ADDITIONAL9 SUPPLEMENTAL PAYMENTS TO NURSING FACILITY PROVIDERS THAT MEET10 THE REQUIREMENTS OUTLINED IN THIS SECTION AND THE STATE11 DEPARTMENT'S SUBSEQUENT REGULATION AS FOLLOWS :12 (a) F OR THE 2021-22 STATE FISCAL YEAR, FUNDS APPROPRIATED13 BY THE GENERAL ASSEMBLY ARE FOR THE PURPOSES OF SUPPORTING14 NURSING FACILITY PROVIDERS EXPERIENCING INCREASED STAFFING COSTS15 RESULTING FROM THE COVID-19 PANDEMIC, NURSING FACILITY16 1247-2- PROVIDERS WITH HIGH MEDICAID UTILIZATION RATES , OR NURSING1 FACILITY PROVIDERS CURRENTLY SERVING INDIVIDUALS WITH COMPLEX2 NEEDS.3 (b) P AYMENTS MADE IN ADDITION TO THOSE SPECIFIED IN4 SUBSECTION (1)(a) OF THIS SECTION MAY ALSO BE MADE TO NURSING5 FACILITY PROVIDERS THAT ACCEPT NEW ADMISSIONS OF6 MEDICAID-ENROLLMENT INDIVIDUALS WITH COMPLEX NEEDS .7 (2) T HE STATE DEPARTMENT SHALL ESTABLISH REPORTING AND8 RESULT TRACKING REQUIREMENTS NECESSARY TO ADMINISTER THE9 FUNDING OUTLINED IN THIS SECTION. THE STATE DEPARTMENT MAY DENY10 OR RECOUP FUNDING FROM NURSING FACILITY PROVIDERS THAT ARE11 NONCOMPLIANT WITH REPORTING REQUIREMENTS OR IF FUNDING IS USED12 FOR PURPOSES OUTSIDE THE INTENT OF SUPPORTING AND STABILIZING13 NURSING FACILITY PROVIDERS THAT ARE MEDICAID PROVIDERS .14 (3) T HE STATE DEPARTMENT SHALL EVALUATE PROVIDER15 OUTCOMES, INCLUDING CHANGES IN CAPACITY , ASSOCIATED WITH THE16 PAYMENT OF SUPPLEMENTAL MONEY TO NURSING FACILITY PROVIDERS .17 T HE STATE DEPARTMENT SHALL UTILIZE NURSING FACILITY PROVIDERS '18 FINANCIAL STATEMENTS AND LABOR AND WAGE RECORDS TO EVALUATE19 THE RESULTS OF PAYMENTS.20 (4) (a) T HE STATE DEPARTMENT SHALL PURSUE FEDERAL21 MATCHING FUNDS. IF FEDERAL MATCHING FUNDS ARE UNAVAILABLE FOR22 ANY REASON, PAYMENTS OUTLINED IN THIS SECTION MAY BE REDUCED OR23 RESTRICTED, SUBJECT TO AVAILABLE FUNDING.24 (b) F OR THE PURPOSES OF FEDERAL UPPER PAYMENT LIMIT25 CALCULATIONS, THE STATE DEPARTMENT SHALL PURSUE FEDERAL26 MATCHING FUNDS FOR PAYMENTS MADE PURSUANT TO THIS SECTION BUT27 1247 -3- ONLY AFTER SECURING FEDERAL MATCHING FUNDS FOR PAYMENTS1 OUTLINED IN SECTIONS 25.5-6-203 (2) AND 25.5-6-208.2 (5) (a) S UPPLEMENTAL PAYMENTS MADE TO NURSING FACILITY3 PROVIDERS PURSUANT TO THIS SECT ION MUST BE DETERMINED BASED ON4 THE MOST RECENT AVAILABLE DATA .5 (b) P URSUANT TO RULES PROMULGATED BY THE STATE6 DEPARTMENT, PAYMENTS RECEIVED PURSUANT TO THIS SECTION MUST BE7 REPORTED AS REVENUE ON THE ANNUAL COST REPORT WHEN8 CALCULATING NURSING FACILITY PROVIDER PER DIEM REIMBURSEMENT AS9 DIRECTED BY THE STATE DEPARTMENT .10 (6) T O RECEIVE AN ADDITIONAL PAYMENT PURSUANT TO11 SUBSECTION (1)(b) OF THIS SECTION, A NURSING FACILITY PROVIDER12 SHALL WORK WITH A HOSPITAL TO FACILITATE THE TIMELY DISCHARGE OF13 MEDICAID MEMBERS FROM THE HOSPITAL INTO THE NURSING FACILITY,14 SERVE MEDICAID MEMBERS WITH COMPLEX NEEDS, OR ACCEPT15 COMPASSIONATE RELEASE INDIVIDUALS FROM THE DEPARTMENT OF16 CORRECTIONS.17 (7) O N OR BEFORE NOVEMBER 1, 2022, THE STATE DEPARTMENT18 SHALL ENGAGE WITH STAKEHOLDERS AND SUBMIT A REPORT AND19 RECOMMENDATIONS TO THE JOINT BUDGET COMMITTEE , THE HEALTH AND20 HUMAN SERVICES COMMITTEE OF THE SENATE , AND THE PUBLIC AND21 BEHAVIORAL HEALTH AND HUMAN SERVICES COMMITTEE OF THE HOUSE OF22 REPRESENTATIVES, OR ANY SUCCESSOR COMMITTEES , CONCERNING23 SUGGESTED CHANGES FOR PERMANENTLY CHANGING MEDICAID NURSING24 FACILITY PROVIDER REIMBURSEMENT POLICY IN COLORADO TO PRIORITIZE25 QUALITY, SUSTAINABILITY, AND SOUND FISCAL STEWARDSHIP TO AVOID26 FURTHER ONE-TIME CASH INFUSIONS. THE REPORT MUST INCLUDE27 1247 -4- CHANGES THAT CAN BE MADE TO AFFIRM A NURSING FACILITY PROVIDER 'S1 COMMITMENT TO ACCOUNTABILITY AND MUST INCLUDE , AT A MINIMUM:2 (a) I NFECTION CONTROL AND CULTURE CHANGE PRACTICES ,3 INCLUDING:4 (I) S INGLE OCCUPANCY ROOMS ;5 (II) S MALLER FACILITY MODELS; AND6 (III) I NNOVATIVE FACILITY MODELS;7 (b) B EHAVIORAL HEALTH NEEDS ;8 (c) P RACTICES REGARDING INDIVIDUALS WHO HAVE COMPLEX9 NEEDS REQUIRING HOSPITAL DISCHARGE ;10 (d) P RACTICES REGARDING CARE AND SERVICES TO11 COMPASSIONATE RELEASE INDIVIDUALS FROM THE DEPARTMENT OF12 CORRECTIONS;13 (e) O PTIONS FOR DIVERSIFIED FUNDING STREAMS TO ENSURE14 CONTINUITY OF SERVICES;15 (f) C OMPETITIVE STAFFING PRACTICES;16 (g) T HE TIMELINE AND COSTS ASSOCIATED WITH IMPLEMENTING17 THE RECOMMENDED CHANGES , INCLUDING THE IMPACT ON NURSING18 FACILITY PROVIDER RATES; AND19 (h) I DENTIFICATION OF THE AMOUNT OF SUPPLEMENTAL PAYMENTS20 TO EACH NURSING FACILITY PROVIDER AND THE OUTCOME EVALUATION21 REQUIRED PURSUANT TO SUBSECTION (3) OF THIS SECTION.22 (8) T HE STATE DEPARTMENT SHALL MEET WITH THE FOLLOWING23 STAKEHOLDERS, AT A MINIMUM, TO SEEK INPUT ON ANY PROPOSED24 REIMBURSEMENT METHODOLOGY CHANGES AND REPORT AS REQUIRED BY25 THIS SECTION:26 (a) A REPRESENTATIVE FROM AN URBAN NURSING FACILITY27 1247 -5- PROVIDER;1 (b) A REPRESENTATIVE FROM A RURAL NURSING FACILITY2 PROVIDER;3 (c) A REPRESENTATIVE FROM A NURSING FACILITY TRADE4 ORGANIZATION;5 (d) A REPRESENTATIVE FROM A NURSING FACILITY WITH A HIGH6 MEDICAID UTILIZATION RATE; AND7 (e) A REPRESENTATIVE FROM A NURSING FACILITY THAT SERVES8 INDIVIDUALS WITH COMPLEX NEEDS .9 (9) T HE STATE BOARD SHALL PROMULGATE ANY RULES NECESSARY10 TO IMPLEMENT THIS SECTION.11 (10) T HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2023.12 SECTION 2. Appropriation. (1) For the 2021-22 state fiscal13 year, $17,000,500 is appropriated to the department of health care policy14 and financing for use by medical services premiums. This appropriation15 is from the general fund and is subject to the "(M)" notation as defined in16 the annual general appropriation act for the same fiscal year. To17 implement this act, the department may use this appropriation for medical18 and long-term care services for Medicaid-eligible individuals.19 (2) For the 2021-22 state fiscal year, the general assembly20 anticipates that the department of health care policy and financing will21 receive $10,000,500 in federal funds to implement this act. The22 appropriation in subsection (1) of this section is based on the assumption23 that the department will receive this amount of federal funds to be used24 for medical and long-term care services for Medicaid-eligible individuals.25 (3) Any money appropriated in subsection (1) of this section not26 expended prior to July 1, 2022, is further appropriated to the department27 1247 -6- for the 2022-23 state fiscal year for the same purpose.1 SECTION 3. Safety clause. The general assembly hereby finds,2 determines, and declares that this act is necessary for the immediate3 preservation of the public peace, health, or safety.4 1247 -7-