104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2858 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-5.2 Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that subject to federal approval, beginning on January 1, 2026, the reimbursement rates for the support component of the nursing facility rate for facilities licensed under the Nursing Home Care Act as skilled or intermediate care facilities and for facilities licensed under the Specialized Mental Health Rehabilitation Act of 2013 shall be the rate in effect on June 30, 2024 increased by the percent change in the Consumer Price Index-U from September 2016 to September 2025. Effective immediately. LRB104 10495 KTG 20570 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2858 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-5.2 305 ILCS 5/5-5.2 Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that subject to federal approval, beginning on January 1, 2026, the reimbursement rates for the support component of the nursing facility rate for facilities licensed under the Nursing Home Care Act as skilled or intermediate care facilities and for facilities licensed under the Specialized Mental Health Rehabilitation Act of 2013 shall be the rate in effect on June 30, 2024 increased by the percent change in the Consumer Price Index-U from September 2016 to September 2025. Effective immediately. LRB104 10495 KTG 20570 b LRB104 10495 KTG 20570 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2858 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-5.2 305 ILCS 5/5-5.2 305 ILCS 5/5-5.2 Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that subject to federal approval, beginning on January 1, 2026, the reimbursement rates for the support component of the nursing facility rate for facilities licensed under the Nursing Home Care Act as skilled or intermediate care facilities and for facilities licensed under the Specialized Mental Health Rehabilitation Act of 2013 shall be the rate in effect on June 30, 2024 increased by the percent change in the Consumer Price Index-U from September 2016 to September 2025. Effective immediately. LRB104 10495 KTG 20570 b LRB104 10495 KTG 20570 b LRB104 10495 KTG 20570 b A BILL FOR HB2858LRB104 10495 KTG 20570 b HB2858 LRB104 10495 KTG 20570 b HB2858 LRB104 10495 KTG 20570 b 1 AN ACT concerning public aid. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Public Aid Code is amended by 5 changing Section 5-5.2 as follows: 6 (305 ILCS 5/5-5.2) 7 Sec. 5-5.2. Payment. 8 (a) All nursing facilities that are grouped pursuant to 9 Section 5-5.1 of this Act shall receive the same rate of 10 payment for similar services. 11 (b) It shall be a matter of State policy that the Illinois 12 Department shall utilize a uniform billing cycle throughout 13 the State for the long-term care providers. 14 (c) (Blank). 15 (c-1) Notwithstanding any other provisions of this Code, 16 the methodologies for reimbursement of nursing services as 17 provided under this Article shall no longer be applicable for 18 bills payable for nursing services rendered on or after a new 19 reimbursement system based on the Patient Driven Payment Model 20 (PDPM) has been fully operationalized, which shall take effect 21 for services provided on or after the implementation of the 22 PDPM reimbursement system begins. For the purposes of Public 23 Act 102-1035, the implementation date of the PDPM 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 HB2858 Introduced , by Rep. Robert "Bob" Rita SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-5.2 305 ILCS 5/5-5.2 305 ILCS 5/5-5.2 Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides that subject to federal approval, beginning on January 1, 2026, the reimbursement rates for the support component of the nursing facility rate for facilities licensed under the Nursing Home Care Act as skilled or intermediate care facilities and for facilities licensed under the Specialized Mental Health Rehabilitation Act of 2013 shall be the rate in effect on June 30, 2024 increased by the percent change in the Consumer Price Index-U from September 2016 to September 2025. Effective immediately. LRB104 10495 KTG 20570 b LRB104 10495 KTG 20570 b LRB104 10495 KTG 20570 b A BILL FOR 305 ILCS 5/5-5.2 LRB104 10495 KTG 20570 b HB2858 LRB104 10495 KTG 20570 b HB2858- 2 -LRB104 10495 KTG 20570 b HB2858 - 2 - LRB104 10495 KTG 20570 b HB2858 - 2 - LRB104 10495 KTG 20570 b 1 reimbursement system and all related provisions shall be July 2 1, 2022 if the following conditions are met: (i) the Centers 3 for Medicare and Medicaid Services has approved corresponding 4 changes in the reimbursement system and bed assessment; and 5 (ii) the Department has filed rules to implement these changes 6 no later than June 1, 2022. Failure of the Department to file 7 rules to implement the changes provided in Public Act 102-1035 8 no later than June 1, 2022 shall result in the implementation 9 date being delayed to October 1, 2022. 10 (d) The new nursing services reimbursement methodology 11 utilizing the Patient Driven Payment Model, which shall be 12 referred to as the PDPM reimbursement system, taking effect 13 July 1, 2022, upon federal approval by the Centers for 14 Medicare and Medicaid Services, shall be based on the 15 following: 16 (1) The methodology shall be resident-centered, 17 facility-specific, cost-based, and based on guidance from 18 the Centers for Medicare and Medicaid Services. 19 (2) Costs shall be annually rebased and case mix index 20 quarterly updated. The nursing services methodology will 21 be assigned to the Medicaid enrolled residents on record 22 as of 30 days prior to the beginning of the rate period in 23 the Department's Medicaid Management Information System 24 (MMIS) as present on the last day of the second quarter 25 preceding the rate period based upon the Assessment 26 Reference Date of the Minimum Data Set (MDS). HB2858 - 2 - LRB104 10495 KTG 20570 b HB2858- 3 -LRB104 10495 KTG 20570 b HB2858 - 3 - LRB104 10495 KTG 20570 b HB2858 - 3 - LRB104 10495 KTG 20570 b 1 (3) Regional wage adjustors based on the Health 2 Service Areas (HSA) groupings and adjusters in effect on 3 April 30, 2012 shall be included, except no adjuster shall 4 be lower than 1.06. 5 (4) PDPM nursing case mix indices in effect on March 6 1, 2022 shall be assigned to each resident class at no less 7 than 0.7858 of the Centers for Medicare and Medicaid 8 Services PDPM unadjusted case mix values, in effect on 9 March 1, 2022. 10 (5) The pool of funds available for distribution by 11 case mix and the base facility rate shall be determined 12 using the formula contained in subsection (d-1). 13 (6) The Department shall establish a variable per diem 14 staffing add-on in accordance with the most recent 15 available federal staffing report, currently the Payroll 16 Based Journal, for the same period of time, and if 17 applicable adjusted for acuity using the same quarter's 18 MDS. The Department shall rely on Payroll Based Journals 19 provided to the Department of Public Health to make a 20 determination of non-submission. If the Department is 21 notified by a facility of missing or inaccurate Payroll 22 Based Journal data or an incorrect calculation of 23 staffing, the Department must make a correction as soon as 24 the error is verified for the applicable quarter. 25 Beginning October 1, 2024, the staffing percentage 26 used in the calculation of the per diem staffing add-on HB2858 - 3 - LRB104 10495 KTG 20570 b HB2858- 4 -LRB104 10495 KTG 20570 b HB2858 - 4 - LRB104 10495 KTG 20570 b HB2858 - 4 - LRB104 10495 KTG 20570 b 1 shall be its PDPM STRIVE Staffing Ratio which equals: its 2 Reported Total Nurse Staffing Hours Per Resident Per Day 3 as published in the most recent federal staffing report 4 (the Provider Information File), divided by the facility's 5 PDPM STRIVE Staffing Target. Each facility's PDPM STRIVE 6 Staffing Target is equal to .82 times the facility's 7 Illinois Adjusted Facility Case-Mix Hours Per Resident Per 8 Day. A facility's Illinois Adjusted Facility Case Mix 9 Hours Per Resident Per Day is equal to its Case-Mix Total 10 Nurse Staffing Hours Per Resident Per Day (as published in 11 the most recent federal staffing report) times 3.662 12 (which reflects the national resident days-weighted mean 13 Reported Total Nurse Staffing Hours Per Resident Per Day 14 as calculated using the January 2024 federal Provider 15 Information Files), divided by the national resident 16 days-weighted mean Reported Total Nurse Staffing Hours Per 17 Resident Per Day calculated using the most recent federal 18 Provider Information File. 19 (6.5) Beginning July 1, 2024, the paid per diem 20 staffing add-on shall be the paid per diem staffing add-on 21 in effect April 1, 2024. For dates beginning October 1, 22 2024 and through September 30, 2025, the denominator for 23 the staffing percentage shall be the lesser of the 24 facility's PDPM STRIVE Staffing Target and: 25 (A) For the quarter beginning October 1, 2024, the 26 sum of 20% of the facility's PDPM STRIVE Staffing HB2858 - 4 - LRB104 10495 KTG 20570 b HB2858- 5 -LRB104 10495 KTG 20570 b HB2858 - 5 - LRB104 10495 KTG 20570 b HB2858 - 5 - LRB104 10495 KTG 20570 b 1 Target and 80% of the facility's Case-Mix Total Nurse 2 Staffing Hours Per Resident Per Day (as published in 3 the January 2024 federal staffing report). 4 (B) For the quarter beginning January 1, 2025, the 5 sum of 40% of the facility's PDPM STRIVE Staffing 6 Target and 60% of the facility's Case-Mix Total Nurse 7 Staffing Hours Per Resident Per Day (as published in 8 the January 2024 federal staffing report). 9 (C) For the quarter beginning March 1, 2025, the 10 sum of 60% of the facility's PDPM STRIVE Staffing 11 Target and 40% of the facility's Case-Mix Total Nurse 12 Staffing Hours Per Resident Per Day (as published in 13 the January 2024 federal staffing report). 14 (D) For the quarter beginning July 1, 2025, the 15 sum of 80% of the facility's PDPM STRIVE Staffing 16 Target and 20% of the facility's Case-Mix Total Nurse 17 Staffing Hours Per Resident Per Day (as published in 18 the January 2024 federal staffing report). 19 Facilities with at least 70% of the staffing 20 indicated by the STRIVE study shall be paid a per diem 21 add-on of $9, increasing by equivalent steps for each 22 whole percentage point until the facilities reach a per 23 diem of $16.52. Facilities with at least 80% of the 24 staffing indicated by the STRIVE study shall be paid a per 25 diem add-on of $16.52, increasing by equivalent steps for 26 each whole percentage point until the facilities reach a HB2858 - 5 - LRB104 10495 KTG 20570 b HB2858- 6 -LRB104 10495 KTG 20570 b HB2858 - 6 - LRB104 10495 KTG 20570 b HB2858 - 6 - LRB104 10495 KTG 20570 b 1 per diem add-on of $25.77. Facilities with at least 92% of 2 the staffing indicated by the STRIVE study shall be paid a 3 per diem add-on of $25.77, increasing by equivalent steps 4 for each whole percentage point until the facilities reach 5 a per diem add-on of $30.98. Facilities with at least 100% 6 of the staffing indicated by the STRIVE study shall be 7 paid a per diem add-on of $30.98, increasing by equivalent 8 steps for each whole percentage point until the facilities 9 reach a per diem add-on of $36.44. Facilities with at 10 least 110% of the staffing indicated by the STRIVE study 11 shall be paid a per diem add-on of $36.44, increasing by 12 equivalent steps for each whole percentage point until the 13 facilities reach a per diem add-on of $38.68. Facilities 14 with at least 125% or higher of the staffing indicated by 15 the STRIVE study shall be paid a per diem add-on of $38.68. 16 No nursing facility's variable staffing per diem add-on 17 shall be reduced by more than 5% in 2 consecutive 18 quarters. For the quarters beginning July 1, 2022 and 19 October 1, 2022, no facility's variable per diem staffing 20 add-on shall be calculated at a rate lower than 85% of the 21 staffing indicated by the STRIVE study. No facility below 22 70% of the staffing indicated by the STRIVE study shall 23 receive a variable per diem staffing add-on after December 24 31, 2022. 25 (7) For dates of services beginning July 1, 2022, the 26 PDPM nursing component per diem for each nursing facility HB2858 - 6 - LRB104 10495 KTG 20570 b HB2858- 7 -LRB104 10495 KTG 20570 b HB2858 - 7 - LRB104 10495 KTG 20570 b HB2858 - 7 - LRB104 10495 KTG 20570 b 1 shall be the product of the facility's (i) statewide PDPM 2 nursing base per diem rate, $92.25, adjusted for the 3 facility average PDPM case mix index calculated quarterly 4 and (ii) the regional wage adjuster, and then add the 5 Medicaid access adjustment as defined in (e-3) of this 6 Section. Transition rates for services provided between 7 July 1, 2022 and October 1, 2023 shall be the greater of 8 the PDPM nursing component per diem or: 9 (A) for the quarter beginning July 1, 2022, the 10 RUG-IV nursing component per diem; 11 (B) for the quarter beginning October 1, 2022, the 12 sum of the RUG-IV nursing component per diem 13 multiplied by 0.80 and the PDPM nursing component per 14 diem multiplied by 0.20; 15 (C) for the quarter beginning January 1, 2023, the 16 sum of the RUG-IV nursing component per diem 17 multiplied by 0.60 and the PDPM nursing component per 18 diem multiplied by 0.40; 19 (D) for the quarter beginning April 1, 2023, the 20 sum of the RUG-IV nursing component per diem 21 multiplied by 0.40 and the PDPM nursing component per 22 diem multiplied by 0.60; 23 (E) for the quarter beginning July 1, 2023, the 24 sum of the RUG-IV nursing component per diem 25 multiplied by 0.20 and the PDPM nursing component per 26 diem multiplied by 0.80; or HB2858 - 7 - LRB104 10495 KTG 20570 b HB2858- 8 -LRB104 10495 KTG 20570 b HB2858 - 8 - LRB104 10495 KTG 20570 b HB2858 - 8 - LRB104 10495 KTG 20570 b 1 (F) for the quarter beginning October 1, 2023 and 2 each subsequent quarter, the transition rate shall end 3 and a nursing facility shall be paid 100% of the PDPM 4 nursing component per diem. 5 (d-1) Calculation of base year Statewide RUG-IV nursing 6 base per diem rate. 7 (1) Base rate spending pool shall be: 8 (A) The base year resident days which are 9 calculated by multiplying the number of Medicaid 10 residents in each nursing home as indicated in the MDS 11 data defined in paragraph (4) by 365. 12 (B) Each facility's nursing component per diem in 13 effect on July 1, 2012 shall be multiplied by 14 subsection (A). 15 (C) Thirteen million is added to the product of 16 subparagraph (A) and subparagraph (B) to adjust for 17 the exclusion of nursing homes defined in paragraph 18 (5). 19 (2) For each nursing home with Medicaid residents as 20 indicated by the MDS data defined in paragraph (4), 21 weighted days adjusted for case mix and regional wage 22 adjustment shall be calculated. For each home this 23 calculation is the product of: 24 (A) Base year resident days as calculated in 25 subparagraph (A) of paragraph (1). 26 (B) The nursing home's regional wage adjustor HB2858 - 8 - LRB104 10495 KTG 20570 b HB2858- 9 -LRB104 10495 KTG 20570 b HB2858 - 9 - LRB104 10495 KTG 20570 b HB2858 - 9 - LRB104 10495 KTG 20570 b 1 based on the Health Service Areas (HSA) groupings and 2 adjustors in effect on April 30, 2012. 3 (C) Facility weighted case mix which is the number 4 of Medicaid residents as indicated by the MDS data 5 defined in paragraph (4) multiplied by the associated 6 case weight for the RUG-IV 48 grouper model using 7 standard RUG-IV procedures for index maximization. 8 (D) The sum of the products calculated for each 9 nursing home in subparagraphs (A) through (C) above 10 shall be the base year case mix, rate adjusted 11 weighted days. 12 (3) The Statewide RUG-IV nursing base per diem rate: 13 (A) on January 1, 2014 shall be the quotient of the 14 paragraph (1) divided by the sum calculated under 15 subparagraph (D) of paragraph (2); 16 (B) on and after July 1, 2014 and until July 1, 17 2022, shall be the amount calculated under 18 subparagraph (A) of this paragraph (3) plus $1.76; and 19 (C) beginning July 1, 2022 and thereafter, $7 20 shall be added to the amount calculated under 21 subparagraph (B) of this paragraph (3) of this 22 Section. 23 (4) Minimum Data Set (MDS) comprehensive assessments 24 for Medicaid residents on the last day of the quarter used 25 to establish the base rate. 26 (5) Nursing facilities designated as of July 1, 2012 HB2858 - 9 - LRB104 10495 KTG 20570 b HB2858- 10 -LRB104 10495 KTG 20570 b HB2858 - 10 - LRB104 10495 KTG 20570 b HB2858 - 10 - LRB104 10495 KTG 20570 b 1 by the Department as "Institutions for Mental Disease" 2 shall be excluded from all calculations under this 3 subsection. The data from these facilities shall not be 4 used in the computations described in paragraphs (1) 5 through (4) above to establish the base rate. 6 (e) Beginning July 1, 2014, the Department shall allocate 7 funding in the amount up to $10,000,000 for per diem add-ons to 8 the RUGS methodology for dates of service on and after July 1, 9 2014: 10 (1) $0.63 for each resident who scores in I4200 11 Alzheimer's Disease or I4800 non-Alzheimer's Dementia. 12 (2) $2.67 for each resident who scores either a "1" or 13 "2" in any items S1200A through S1200I and also scores in 14 RUG groups PA1, PA2, BA1, or BA2. 15 (e-1) (Blank). 16 (e-2) For dates of services beginning January 1, 2014 and 17 ending September 30, 2023, the RUG-IV nursing component per 18 diem for a nursing home shall be the product of the statewide 19 RUG-IV nursing base per diem rate, the facility average case 20 mix index, and the regional wage adjustor. For dates of 21 service beginning July 1, 2022 and ending September 30, 2023, 22 the Medicaid access adjustment described in subsection (e-3) 23 shall be added to the product. 24 (e-3) A Medicaid Access Adjustment of $4 adjusted for the 25 facility average PDPM case mix index calculated quarterly 26 shall be added to the statewide PDPM nursing per diem for all HB2858 - 10 - LRB104 10495 KTG 20570 b HB2858- 11 -LRB104 10495 KTG 20570 b HB2858 - 11 - LRB104 10495 KTG 20570 b HB2858 - 11 - LRB104 10495 KTG 20570 b 1 facilities with annual Medicaid bed days of at least 70% of all 2 occupied bed days adjusted quarterly. For each new calendar 3 year and for the 6-month period beginning July 1, 2022, the 4 percentage of a facility's occupied bed days comprised of 5 Medicaid bed days shall be determined by the Department 6 quarterly. For dates of service beginning January 1, 2023, the 7 Medicaid Access Adjustment shall be increased to $4.75. This 8 subsection shall be inoperative on and after January 1, 2028. 9 (e-4) Subject to federal approval, on and after January 1, 10 2024, the Department shall increase the rate add-on at 11 paragraph (7) subsection (a) under 89 Ill. Adm. Code 147.335 12 for ventilator services from $208 per day to $481 per day. 13 Payment is subject to the criteria and requirements under 89 14 Ill. Adm. Code 147.335. 15 (f) (Blank). 16 (g) Notwithstanding any other provision of this Code, on 17 and after July 1, 2012, for facilities not designated by the 18 Department of Healthcare and Family Services as "Institutions 19 for Mental Disease", rates effective May 1, 2011 shall be 20 adjusted as follows: 21 (1) (Blank); 22 (2) (Blank); 23 (3) Facility rates for the capital and support 24 components shall be reduced by 1.7%. 25 (h) Notwithstanding any other provision of this Code, on 26 and after July 1, 2012, nursing facilities designated by the HB2858 - 11 - LRB104 10495 KTG 20570 b HB2858- 12 -LRB104 10495 KTG 20570 b HB2858 - 12 - LRB104 10495 KTG 20570 b HB2858 - 12 - LRB104 10495 KTG 20570 b 1 Department of Healthcare and Family Services as "Institutions 2 for Mental Disease" and "Institutions for Mental Disease" that 3 are facilities licensed under the Specialized Mental Health 4 Rehabilitation Act of 2013 shall have the nursing, 5 socio-developmental, capital, and support components of their 6 reimbursement rate effective May 1, 2011 reduced in total by 7 2.7%. 8 (i) On and after July 1, 2014, the reimbursement rates for 9 the support component of the nursing facility rate for 10 facilities licensed under the Nursing Home Care Act as skilled 11 or intermediate care facilities shall be the rate in effect on 12 June 30, 2014 increased by 8.17%. 13 (i-1) Subject to federal approval, on and after January 1, 14 2024, the reimbursement rates for the support component of the 15 nursing facility rate for facilities licensed under the 16 Nursing Home Care Act as skilled or intermediate care 17 facilities shall be the rate in effect on June 30, 2023 18 increased by 12%. 19 (i-2) Subject to federal approval, beginning on January 1, 20 2026, the reimbursement rates for the support component of the 21 nursing facility rate for facilities licensed under the 22 Nursing Home Care Act as skilled or intermediate care 23 facilities and for facilities licensed under the Specialized 24 Mental Health Rehabilitation Act of 2013 shall be the rate in 25 effect on June 30, 2024 increased by the percent change in the 26 Consumer Price Index-U from September 2016 to September 2025. HB2858 - 12 - LRB104 10495 KTG 20570 b HB2858- 13 -LRB104 10495 KTG 20570 b HB2858 - 13 - LRB104 10495 KTG 20570 b HB2858 - 13 - LRB104 10495 KTG 20570 b 1 As used in this subsection, "Consumer Price Index-U" means the 2 index published by the Bureau of Labor Statistics of the 3 United States Department of Labor that measures the average 4 change in prices of goods and services purchased by all urban 5 consumers, United States city average, all items, 1982-84 = 6 100. 7 (j) Notwithstanding any other provision of law, subject to 8 federal approval, effective July 1, 2019, sufficient funds 9 shall be allocated for changes to rates for facilities 10 licensed under the Nursing Home Care Act as skilled nursing 11 facilities or intermediate care facilities for dates of 12 services on and after July 1, 2019: (i) to establish, through 13 June 30, 2022 a per diem add-on to the direct care per diem 14 rate not to exceed $70,000,000 annually in the aggregate 15 taking into account federal matching funds for the purpose of 16 addressing the facility's unique staffing needs, adjusted 17 quarterly and distributed by a weighted formula based on 18 Medicaid bed days on the last day of the second quarter 19 preceding the quarter for which the rate is being adjusted. 20 Beginning July 1, 2022, the annual $70,000,000 described in 21 the preceding sentence shall be dedicated to the variable per 22 diem add-on for staffing under paragraph (6) of subsection 23 (d); and (ii) in an amount not to exceed $170,000,000 annually 24 in the aggregate taking into account federal matching funds to 25 permit the support component of the nursing facility rate to 26 be updated as follows: HB2858 - 13 - LRB104 10495 KTG 20570 b HB2858- 14 -LRB104 10495 KTG 20570 b HB2858 - 14 - LRB104 10495 KTG 20570 b HB2858 - 14 - LRB104 10495 KTG 20570 b 1 (1) 80%, or $136,000,000, of the funds shall be used 2 to update each facility's rate in effect on June 30, 2019 3 using the most recent cost reports on file, which have had 4 a limited review conducted by the Department of Healthcare 5 and Family Services and will not hold up enacting the rate 6 increase, with the Department of Healthcare and Family 7 Services. 8 (2) After completing the calculation in paragraph (1), 9 any facility whose rate is less than the rate in effect on 10 June 30, 2019 shall have its rate restored to the rate in 11 effect on June 30, 2019 from the 20% of the funds set 12 aside. 13 (3) The remainder of the 20%, or $34,000,000, shall be 14 used to increase each facility's rate by an equal 15 percentage. 16 (k) During the first quarter of State Fiscal Year 2020, 17 the Department of Healthcare of Family Services must convene a 18 technical advisory group consisting of members of all trade 19 associations representing Illinois skilled nursing providers 20 to discuss changes necessary with federal implementation of 21 Medicare's Patient-Driven Payment Model. Implementation of 22 Medicare's Patient-Driven Payment Model shall, by September 1, 23 2020, end the collection of the MDS data that is necessary to 24 maintain the current RUG-IV Medicaid payment methodology. The 25 technical advisory group must consider a revised reimbursement 26 methodology that takes into account transparency, HB2858 - 14 - LRB104 10495 KTG 20570 b HB2858- 15 -LRB104 10495 KTG 20570 b HB2858 - 15 - LRB104 10495 KTG 20570 b HB2858 - 15 - LRB104 10495 KTG 20570 b 1 accountability, actual staffing as reported under the 2 federally required Payroll Based Journal system, changes to 3 the minimum wage, adequacy in coverage of the cost of care, and 4 a quality component that rewards quality improvements. 5 (l) The Department shall establish per diem add-on 6 payments to improve the quality of care delivered by 7 facilities, including: 8 (1) Incentive payments determined by facility 9 performance on specified quality measures in an initial 10 amount of $70,000,000. Nothing in this subsection shall be 11 construed to limit the quality of care payments in the 12 aggregate statewide to $70,000,000, and, if quality of 13 care has improved across nursing facilities, the 14 Department shall adjust those add-on payments accordingly. 15 The quality payment methodology described in this 16 subsection must be used for at least State Fiscal Year 17 2023. Beginning with the quarter starting July 1, 2023, 18 the Department may add, remove, or change quality metrics 19 and make associated changes to the quality payment 20 methodology as outlined in subparagraph (E). Facilities 21 designated by the Centers for Medicare and Medicaid 22 Services as a special focus facility or a hospital-based 23 nursing home do not qualify for quality payments. 24 (A) Each quality pool must be distributed by 25 assigning a quality weighted score for each nursing 26 home which is calculated by multiplying the nursing HB2858 - 15 - LRB104 10495 KTG 20570 b HB2858- 16 -LRB104 10495 KTG 20570 b HB2858 - 16 - LRB104 10495 KTG 20570 b HB2858 - 16 - LRB104 10495 KTG 20570 b 1 home's quality base period Medicaid days by the 2 nursing home's star rating weight in that period. 3 (B) Star rating weights are assigned based on the 4 nursing home's star rating for the LTS quality star 5 rating. As used in this subparagraph, "LTS quality 6 star rating" means the long-term stay quality rating 7 for each nursing facility, as assigned by the Centers 8 for Medicare and Medicaid Services under the Five-Star 9 Quality Rating System. The rating is a number ranging 10 from 0 (lowest) to 5 (highest). 11 (i) Zero-star or one-star rating has a weight 12 of 0. 13 (ii) Two-star rating has a weight of 0.75. 14 (iii) Three-star rating has a weight of 1.5. 15 (iv) Four-star rating has a weight of 2.5. 16 (v) Five-star rating has a weight of 3.5. 17 (C) Each nursing home's quality weight score is 18 divided by the sum of all quality weight scores for 19 qualifying nursing homes to determine the proportion 20 of the quality pool to be paid to the nursing home. 21 (D) The quality pool is no less than $70,000,000 22 annually or $17,500,000 per quarter. The Department 23 shall publish on its website the estimated payments 24 and the associated weights for each facility 45 days 25 prior to when the initial payments for the quarter are 26 to be paid. The Department shall assign each facility HB2858 - 16 - LRB104 10495 KTG 20570 b HB2858- 17 -LRB104 10495 KTG 20570 b HB2858 - 17 - LRB104 10495 KTG 20570 b HB2858 - 17 - LRB104 10495 KTG 20570 b 1 the most recent and applicable quarter's STAR value 2 unless the facility notifies the Department within 15 3 days of an issue and the facility provides reasonable 4 evidence demonstrating its timely compliance with 5 federal data submission requirements for the quarter 6 of record. If such evidence cannot be provided to the 7 Department, the STAR rating assigned to the facility 8 shall be reduced by one from the prior quarter. 9 (E) The Department shall review quality metrics 10 used for payment of the quality pool and make 11 recommendations for any associated changes to the 12 methodology for distributing quality pool payments in 13 consultation with associations representing long-term 14 care providers, consumer advocates, organizations 15 representing workers of long-term care facilities, and 16 payors. The Department may establish, by rule, changes 17 to the methodology for distributing quality pool 18 payments. 19 (F) The Department shall disburse quality pool 20 payments from the Long-Term Care Provider Fund on a 21 monthly basis in amounts proportional to the total 22 quality pool payment determined for the quarter. 23 (G) The Department shall publish any changes in 24 the methodology for distributing quality pool payments 25 prior to the beginning of the measurement period or 26 quality base period for any metric added to the HB2858 - 17 - LRB104 10495 KTG 20570 b HB2858- 18 -LRB104 10495 KTG 20570 b HB2858 - 18 - LRB104 10495 KTG 20570 b HB2858 - 18 - LRB104 10495 KTG 20570 b 1 distribution's methodology. 2 (2) Payments based on CNA tenure, promotion, and CNA 3 training for the purpose of increasing CNA compensation. 4 It is the intent of this subsection that payments made in 5 accordance with this paragraph be directly incorporated 6 into increased compensation for CNAs. As used in this 7 paragraph, "CNA" means a certified nursing assistant as 8 that term is described in Section 3-206 of the Nursing 9 Home Care Act, Section 3-206 of the ID/DD Community Care 10 Act, and Section 3-206 of the MC/DD Act. The Department 11 shall establish, by rule, payments to nursing facilities 12 equal to Medicaid's share of the tenure wage increments 13 specified in this paragraph for all reported CNA employee 14 hours compensated according to a posted schedule 15 consisting of increments at least as large as those 16 specified in this paragraph. The increments are as 17 follows: an additional $1.50 per hour for CNAs with at 18 least one and less than 2 years' experience plus another 19 $1 per hour for each additional year of experience up to a 20 maximum of $6.50 for CNAs with at least 6 years of 21 experience. For purposes of this paragraph, Medicaid's 22 share shall be the ratio determined by paid Medicaid bed 23 days divided by total bed days for the applicable time 24 period used in the calculation. In addition, and additive 25 to any tenure increments paid as specified in this 26 paragraph, the Department shall establish, by rule, HB2858 - 18 - LRB104 10495 KTG 20570 b HB2858- 19 -LRB104 10495 KTG 20570 b HB2858 - 19 - LRB104 10495 KTG 20570 b HB2858 - 19 - LRB104 10495 KTG 20570 b 1 payments supporting Medicaid's share of the 2 promotion-based wage increments for CNA employee hours 3 compensated for that promotion with at least a $1.50 4 hourly increase. Medicaid's share shall be established as 5 it is for the tenure increments described in this 6 paragraph. Qualifying promotions shall be defined by the 7 Department in rules for an expected 10-15% subset of CNAs 8 assigned intermediate, specialized, or added roles such as 9 CNA trainers, CNA scheduling "captains", and CNA 10 specialists for resident conditions like dementia or 11 memory care or behavioral health. 12 (m) The Department shall work with nursing facility 13 industry representatives to design policies and procedures to 14 permit facilities to address the integrity of data from 15 federal reporting sites used by the Department in setting 16 facility rates. 17 (Source: P.A. 102-77, eff. 7-9-21; 102-558, eff. 8-20-21; 18 102-1035, eff. 5-31-22; 102-1118, eff. 1-18-23; 103-102, 19 Article 40, Section 40-5, eff. 1-1-24; 103-102, Article 50, 20 Section 50-5, eff. 1-1-24; 103-593, eff. 6-7-24; 103-605, eff. 21 7-1-24.) HB2858 - 19 - LRB104 10495 KTG 20570 b