104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1490 Introduced 1/31/2025, by Sen. Mary Edly-Allen SYNOPSIS AS INTRODUCED: 305 ILCS 5/5-5.2 Amends the Medical Assistance Article of the Illinois Public Aid Code. In provisions concerning PDPM STRIVE staffing ratio calculations for nursing facilities, provides that beginning January 1, 2025, the staffing percentage used in the calculation of the per diem staffing add-on shall be its PDPM STRIVE Staffing Ratio which equals: its Reported Total Nurse Staffing Hours Per Resident Per Day as published in the most recent federal staffing report (the Provider Information file), divided by the facility's PDPM STRIVE Staffing Target. Provides that each facility's PDPM STRIVE Staffing Target is equal to .76 times the facility's Illinois Adjusted Facility Case-Mix Hours Per Resident Per Day. Provides that a facility's Illinois Adjusted Facility Case-Mix Hours Per Resident Per Day is equal to its Nursing Case-Mix (as published in the most recent federal Provider Information file) divided by 1.4627 times 3.79 (which is the Reported Total Nurse Staffing Hours Per Resident Per Day for the Nation as reported in the January 2024 State US Averages file). Effective July 1, 2025. LRB104 09237 KTG 19294 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1490 Introduced 1/31/2025, by Sen. Mary Edly-Allen 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. In provisions concerning PDPM STRIVE staffing ratio calculations for nursing facilities, provides that beginning January 1, 2025, the staffing percentage used in the calculation of the per diem staffing add-on shall be its PDPM STRIVE Staffing Ratio which equals: its Reported Total Nurse Staffing Hours Per Resident Per Day as published in the most recent federal staffing report (the Provider Information file), divided by the facility's PDPM STRIVE Staffing Target. Provides that each facility's PDPM STRIVE Staffing Target is equal to .76 times the facility's Illinois Adjusted Facility Case-Mix Hours Per Resident Per Day. Provides that a facility's Illinois Adjusted Facility Case-Mix Hours Per Resident Per Day is equal to its Nursing Case-Mix (as published in the most recent federal Provider Information file) divided by 1.4627 times 3.79 (which is the Reported Total Nurse Staffing Hours Per Resident Per Day for the Nation as reported in the January 2024 State US Averages file). Effective July 1, 2025. LRB104 09237 KTG 19294 b LRB104 09237 KTG 19294 b A BILL FOR 104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026 SB1490 Introduced 1/31/2025, by Sen. Mary Edly-Allen 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. In provisions concerning PDPM STRIVE staffing ratio calculations for nursing facilities, provides that beginning January 1, 2025, the staffing percentage used in the calculation of the per diem staffing add-on shall be its PDPM STRIVE Staffing Ratio which equals: its Reported Total Nurse Staffing Hours Per Resident Per Day as published in the most recent federal staffing report (the Provider Information file), divided by the facility's PDPM STRIVE Staffing Target. Provides that each facility's PDPM STRIVE Staffing Target is equal to .76 times the facility's Illinois Adjusted Facility Case-Mix Hours Per Resident Per Day. Provides that a facility's Illinois Adjusted Facility Case-Mix Hours Per Resident Per Day is equal to its Nursing Case-Mix (as published in the most recent federal Provider Information file) divided by 1.4627 times 3.79 (which is the Reported Total Nurse Staffing Hours Per Resident Per Day for the Nation as reported in the January 2024 State US Averages file). Effective July 1, 2025. LRB104 09237 KTG 19294 b LRB104 09237 KTG 19294 b LRB104 09237 KTG 19294 b A BILL FOR SB1490LRB104 09237 KTG 19294 b SB1490 LRB104 09237 KTG 19294 b SB1490 LRB104 09237 KTG 19294 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 SB1490 Introduced 1/31/2025, by Sen. Mary Edly-Allen 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. In provisions concerning PDPM STRIVE staffing ratio calculations for nursing facilities, provides that beginning January 1, 2025, the staffing percentage used in the calculation of the per diem staffing add-on shall be its PDPM STRIVE Staffing Ratio which equals: its Reported Total Nurse Staffing Hours Per Resident Per Day as published in the most recent federal staffing report (the Provider Information file), divided by the facility's PDPM STRIVE Staffing Target. Provides that each facility's PDPM STRIVE Staffing Target is equal to .76 times the facility's Illinois Adjusted Facility Case-Mix Hours Per Resident Per Day. Provides that a facility's Illinois Adjusted Facility Case-Mix Hours Per Resident Per Day is equal to its Nursing Case-Mix (as published in the most recent federal Provider Information file) divided by 1.4627 times 3.79 (which is the Reported Total Nurse Staffing Hours Per Resident Per Day for the Nation as reported in the January 2024 State US Averages file). Effective July 1, 2025. LRB104 09237 KTG 19294 b LRB104 09237 KTG 19294 b LRB104 09237 KTG 19294 b A BILL FOR 305 ILCS 5/5-5.2 LRB104 09237 KTG 19294 b SB1490 LRB104 09237 KTG 19294 b SB1490- 2 -LRB104 09237 KTG 19294 b SB1490 - 2 - LRB104 09237 KTG 19294 b SB1490 - 2 - LRB104 09237 KTG 19294 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). SB1490 - 2 - LRB104 09237 KTG 19294 b SB1490- 3 -LRB104 09237 KTG 19294 b SB1490 - 3 - LRB104 09237 KTG 19294 b SB1490 - 3 - LRB104 09237 KTG 19294 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 SB1490 - 3 - LRB104 09237 KTG 19294 b SB1490- 4 -LRB104 09237 KTG 19294 b SB1490 - 4 - LRB104 09237 KTG 19294 b SB1490 - 4 - LRB104 09237 KTG 19294 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 Provider Information file staffing 12 report) times 3.662 (which reflects the national resident 13 days-weighted mean Reported Total Nurse Staffing Hours Per 14 Resident Per Day as calculated using the January 2024 15 federal Provider Information Files), divided by the 16 national resident days-weighted mean Reported Total Nurse 17 Staffing Hours Per Resident Per Day calculated using the 18 most recent State US Averages file federal Provider 19 Information File. 20 Beginning July 1, 2025, the staffing percentage used 21 in the calculation of the per diem staffing add-on shall 22 be its PDPM STRIVE Staffing Ratio which equals: its 23 Reported Total Nurse Staffing Hours Per Resident Per Day 24 as published in the most recent federal staffing report 25 (the Provider Information file), divided by the facility's 26 PDPM STRIVE Staffing Target. Each facility's PDPM STRIVE SB1490 - 4 - LRB104 09237 KTG 19294 b SB1490- 5 -LRB104 09237 KTG 19294 b SB1490 - 5 - LRB104 09237 KTG 19294 b SB1490 - 5 - LRB104 09237 KTG 19294 b 1 Staffing Target is equal to .76 times the facility's 2 Illinois Adjusted Facility Case-Mix Hours Per Resident Per 3 Day. A facility's Illinois Adjusted Facility Case-Mix 4 Hours Per Resident Per Day is equal to its Nursing 5 Case-Mix (as published in the most recent federal Provider 6 Information file) divided by 1.4627 times 3.79 (which is 7 the Reported Total Nurse Staffing Hours Per Resident Per 8 Day for the Nation as reported in the January 2024 State US 9 Averages file). 10 (6.5) Beginning July 1, 2024, the paid per diem 11 staffing add-on shall be the paid per diem staffing add-on 12 in effect April 1, 2024. For dates beginning October 1, 13 2024 and through September 30, 2025, the denominator for 14 the staffing percentage shall be the lesser of the 15 facility's PDPM STRIVE Staffing Target and: 16 (A) For the quarter beginning October 1, 2024, the 17 sum of 20% of the facility's PDPM STRIVE Staffing 18 Target and 80% of the facility's Case-Mix Total Nurse 19 Staffing Hours Per Resident Per Day (as published in 20 the January 2024 federal staffing report). 21 (B) For the quarter beginning January 1, 2025, the 22 sum of 40% of the facility's PDPM STRIVE Staffing 23 Target and 60% of the facility's Case-Mix Total Nurse 24 Staffing Hours Per Resident Per Day (as published in 25 the January 2024 federal staffing report). 26 (C) For the quarter beginning March 1, 2025, the SB1490 - 5 - LRB104 09237 KTG 19294 b SB1490- 6 -LRB104 09237 KTG 19294 b SB1490 - 6 - LRB104 09237 KTG 19294 b SB1490 - 6 - LRB104 09237 KTG 19294 b 1 sum of 60% of the facility's PDPM STRIVE Staffing 2 Target and 40% of the facility's Case-Mix Total Nurse 3 Staffing Hours Per Resident Per Day (as published in 4 the January 2024 federal staffing report). 5 (D) For the quarter beginning July 1, 2025, the 6 sum of 80% of the facility's PDPM STRIVE Staffing 7 Target and 20% of the facility's Case-Mix Total Nurse 8 Staffing Hours Per Resident Per Day (as published in 9 the January 2024 federal staffing report). 10 Facilities with at least 70% of the staffing 11 indicated by the STRIVE study shall be paid a per diem 12 add-on of $9, increasing by equivalent steps for each 13 whole percentage point until the facilities reach a per 14 diem of $16.52. Facilities with at least 80% of the 15 staffing indicated by the STRIVE study shall be paid a per 16 diem add-on of $16.52, increasing by equivalent steps for 17 each whole percentage point until the facilities reach a 18 per diem add-on of $25.77. Facilities with at least 92% of 19 the staffing indicated by the STRIVE study shall be paid a 20 per diem add-on of $25.77, increasing by equivalent steps 21 for each whole percentage point until the facilities reach 22 a per diem add-on of $30.98. Facilities with at least 100% 23 of the staffing indicated by the STRIVE study shall be 24 paid a per diem add-on of $30.98, increasing by equivalent 25 steps for each whole percentage point until the facilities 26 reach a per diem add-on of $36.44. Facilities with at SB1490 - 6 - LRB104 09237 KTG 19294 b SB1490- 7 -LRB104 09237 KTG 19294 b SB1490 - 7 - LRB104 09237 KTG 19294 b SB1490 - 7 - LRB104 09237 KTG 19294 b 1 least 110% of the staffing indicated by the STRIVE study 2 shall be paid a per diem add-on of $36.44, increasing by 3 equivalent steps for each whole percentage point until the 4 facilities reach a per diem add-on of $38.68. Facilities 5 with at least 125% or higher of the staffing indicated by 6 the STRIVE study shall be paid a per diem add-on of $38.68. 7 No nursing facility's variable staffing per diem add-on 8 shall be reduced by more than 5% in 2 consecutive 9 quarters. For the quarters beginning July 1, 2022 and 10 October 1, 2022, no facility's variable per diem staffing 11 add-on shall be calculated at a rate lower than 85% of the 12 staffing indicated by the STRIVE study. No facility below 13 70% of the staffing indicated by the STRIVE study shall 14 receive a variable per diem staffing add-on after December 15 31, 2022. 16 (7) For dates of services beginning July 1, 2022, the 17 PDPM nursing component per diem for each nursing facility 18 shall be the product of the facility's (i) statewide PDPM 19 nursing base per diem rate, $92.25, adjusted for the 20 facility average PDPM case mix index calculated quarterly 21 and (ii) the regional wage adjuster, and then add the 22 Medicaid access adjustment as defined in (e-3) of this 23 Section. Transition rates for services provided between 24 July 1, 2022 and October 1, 2023 shall be the greater of 25 the PDPM nursing component per diem or: 26 (A) for the quarter beginning July 1, 2022, the SB1490 - 7 - LRB104 09237 KTG 19294 b SB1490- 8 -LRB104 09237 KTG 19294 b SB1490 - 8 - LRB104 09237 KTG 19294 b SB1490 - 8 - LRB104 09237 KTG 19294 b 1 RUG-IV nursing component per diem; 2 (B) for the quarter beginning October 1, 2022, the 3 sum of the RUG-IV nursing component per diem 4 multiplied by 0.80 and the PDPM nursing component per 5 diem multiplied by 0.20; 6 (C) for the quarter beginning January 1, 2023, the 7 sum of the RUG-IV nursing component per diem 8 multiplied by 0.60 and the PDPM nursing component per 9 diem multiplied by 0.40; 10 (D) for the quarter beginning April 1, 2023, the 11 sum of the RUG-IV nursing component per diem 12 multiplied by 0.40 and the PDPM nursing component per 13 diem multiplied by 0.60; 14 (E) for the quarter beginning July 1, 2023, the 15 sum of the RUG-IV nursing component per diem 16 multiplied by 0.20 and the PDPM nursing component per 17 diem multiplied by 0.80; or 18 (F) for the quarter beginning October 1, 2023 and 19 each subsequent quarter, the transition rate shall end 20 and a nursing facility shall be paid 100% of the PDPM 21 nursing component per diem. 22 (d-1) Calculation of base year Statewide RUG-IV nursing 23 base per diem rate. 24 (1) Base rate spending pool shall be: 25 (A) The base year resident days which are 26 calculated by multiplying the number of Medicaid SB1490 - 8 - LRB104 09237 KTG 19294 b SB1490- 9 -LRB104 09237 KTG 19294 b SB1490 - 9 - LRB104 09237 KTG 19294 b SB1490 - 9 - LRB104 09237 KTG 19294 b 1 residents in each nursing home as indicated in the MDS 2 data defined in paragraph (4) by 365. 3 (B) Each facility's nursing component per diem in 4 effect on July 1, 2012 shall be multiplied by 5 subsection (A). 6 (C) Thirteen million is added to the product of 7 subparagraph (A) and subparagraph (B) to adjust for 8 the exclusion of nursing homes defined in paragraph 9 (5). 10 (2) For each nursing home with Medicaid residents as 11 indicated by the MDS data defined in paragraph (4), 12 weighted days adjusted for case mix and regional wage 13 adjustment shall be calculated. For each home this 14 calculation is the product of: 15 (A) Base year resident days as calculated in 16 subparagraph (A) of paragraph (1). 17 (B) The nursing home's regional wage adjustor 18 based on the Health Service Areas (HSA) groupings and 19 adjustors in effect on April 30, 2012. 20 (C) Facility weighted case mix which is the number 21 of Medicaid residents as indicated by the MDS data 22 defined in paragraph (4) multiplied by the associated 23 case weight for the RUG-IV 48 grouper model using 24 standard RUG-IV procedures for index maximization. 25 (D) The sum of the products calculated for each 26 nursing home in subparagraphs (A) through (C) above SB1490 - 9 - LRB104 09237 KTG 19294 b SB1490- 10 -LRB104 09237 KTG 19294 b SB1490 - 10 - LRB104 09237 KTG 19294 b SB1490 - 10 - LRB104 09237 KTG 19294 b 1 shall be the base year case mix, rate adjusted 2 weighted days. 3 (3) The Statewide RUG-IV nursing base per diem rate: 4 (A) on January 1, 2014 shall be the quotient of the 5 paragraph (1) divided by the sum calculated under 6 subparagraph (D) of paragraph (2); 7 (B) on and after July 1, 2014 and until July 1, 8 2022, shall be the amount calculated under 9 subparagraph (A) of this paragraph (3) plus $1.76; and 10 (C) beginning July 1, 2022 and thereafter, $7 11 shall be added to the amount calculated under 12 subparagraph (B) of this paragraph (3) of this 13 Section. 14 (4) Minimum Data Set (MDS) comprehensive assessments 15 for Medicaid residents on the last day of the quarter used 16 to establish the base rate. 17 (5) Nursing facilities designated as of July 1, 2012 18 by the Department as "Institutions for Mental Disease" 19 shall be excluded from all calculations under this 20 subsection. The data from these facilities shall not be 21 used in the computations described in paragraphs (1) 22 through (4) above to establish the base rate. 23 (e) Beginning July 1, 2014, the Department shall allocate 24 funding in the amount up to $10,000,000 for per diem add-ons to 25 the RUGS methodology for dates of service on and after July 1, 26 2014: SB1490 - 10 - LRB104 09237 KTG 19294 b SB1490- 11 -LRB104 09237 KTG 19294 b SB1490 - 11 - LRB104 09237 KTG 19294 b SB1490 - 11 - LRB104 09237 KTG 19294 b 1 (1) $0.63 for each resident who scores in I4200 2 Alzheimer's Disease or I4800 non-Alzheimer's Dementia. 3 (2) $2.67 for each resident who scores either a "1" or 4 "2" in any items S1200A through S1200I and also scores in 5 RUG groups PA1, PA2, BA1, or BA2. 6 (e-1) (Blank). 7 (e-2) For dates of services beginning January 1, 2014 and 8 ending September 30, 2023, the RUG-IV nursing component per 9 diem for a nursing home shall be the product of the statewide 10 RUG-IV nursing base per diem rate, the facility average case 11 mix index, and the regional wage adjustor. For dates of 12 service beginning July 1, 2022 and ending September 30, 2023, 13 the Medicaid access adjustment described in subsection (e-3) 14 shall be added to the product. 15 (e-3) A Medicaid Access Adjustment of $4 adjusted for the 16 facility average PDPM case mix index calculated quarterly 17 shall be added to the statewide PDPM nursing per diem for all 18 facilities with annual Medicaid bed days of at least 70% of all 19 occupied bed days adjusted quarterly. For each new calendar 20 year and for the 6-month period beginning July 1, 2022, the 21 percentage of a facility's occupied bed days comprised of 22 Medicaid bed days shall be determined by the Department 23 quarterly. For dates of service beginning January 1, 2023, the 24 Medicaid Access Adjustment shall be increased to $4.75. This 25 subsection shall be inoperative on and after January 1, 2028. 26 (e-4) Subject to federal approval, on and after January 1, SB1490 - 11 - LRB104 09237 KTG 19294 b SB1490- 12 -LRB104 09237 KTG 19294 b SB1490 - 12 - LRB104 09237 KTG 19294 b SB1490 - 12 - LRB104 09237 KTG 19294 b 1 2024, the Department shall increase the rate add-on at 2 paragraph (7) subsection (a) under 89 Ill. Adm. Code 147.335 3 for ventilator services from $208 per day to $481 per day. 4 Payment is subject to the criteria and requirements under 89 5 Ill. Adm. Code 147.335. 6 (f) (Blank). 7 (g) Notwithstanding any other provision of this Code, on 8 and after July 1, 2012, for facilities not designated by the 9 Department of Healthcare and Family Services as "Institutions 10 for Mental Disease", rates effective May 1, 2011 shall be 11 adjusted as follows: 12 (1) (Blank); 13 (2) (Blank); 14 (3) Facility rates for the capital and support 15 components shall be reduced by 1.7%. 16 (h) Notwithstanding any other provision of this Code, on 17 and after July 1, 2012, nursing facilities designated by the 18 Department of Healthcare and Family Services as "Institutions 19 for Mental Disease" and "Institutions for Mental Disease" that 20 are facilities licensed under the Specialized Mental Health 21 Rehabilitation Act of 2013 shall have the nursing, 22 socio-developmental, capital, and support components of their 23 reimbursement rate effective May 1, 2011 reduced in total by 24 2.7%. 25 (i) On and after July 1, 2014, the reimbursement rates for 26 the support component of the nursing facility rate for SB1490 - 12 - LRB104 09237 KTG 19294 b SB1490- 13 -LRB104 09237 KTG 19294 b SB1490 - 13 - LRB104 09237 KTG 19294 b SB1490 - 13 - LRB104 09237 KTG 19294 b 1 facilities licensed under the Nursing Home Care Act as skilled 2 or intermediate care facilities shall be the rate in effect on 3 June 30, 2014 increased by 8.17%. 4 (i-1) Subject to federal approval, on and after January 1, 5 2024, the reimbursement rates for the support component of the 6 nursing facility rate for facilities licensed under the 7 Nursing Home Care Act as skilled or intermediate care 8 facilities shall be the rate in effect on June 30, 2023 9 increased by 12%. 10 (j) Notwithstanding any other provision of law, subject to 11 federal approval, effective July 1, 2019, sufficient funds 12 shall be allocated for changes to rates for facilities 13 licensed under the Nursing Home Care Act as skilled nursing 14 facilities or intermediate care facilities for dates of 15 services on and after July 1, 2019: (i) to establish, through 16 June 30, 2022 a per diem add-on to the direct care per diem 17 rate not to exceed $70,000,000 annually in the aggregate 18 taking into account federal matching funds for the purpose of 19 addressing the facility's unique staffing needs, adjusted 20 quarterly and distributed by a weighted formula based on 21 Medicaid bed days on the last day of the second quarter 22 preceding the quarter for which the rate is being adjusted. 23 Beginning July 1, 2022, the annual $70,000,000 described in 24 the preceding sentence shall be dedicated to the variable per 25 diem add-on for staffing under paragraph (6) of subsection 26 (d); and (ii) in an amount not to exceed $170,000,000 annually SB1490 - 13 - LRB104 09237 KTG 19294 b SB1490- 14 -LRB104 09237 KTG 19294 b SB1490 - 14 - LRB104 09237 KTG 19294 b SB1490 - 14 - LRB104 09237 KTG 19294 b 1 in the aggregate taking into account federal matching funds to 2 permit the support component of the nursing facility rate to 3 be updated as follows: 4 (1) 80%, or $136,000,000, of the funds shall be used 5 to update each facility's rate in effect on June 30, 2019 6 using the most recent cost reports on file, which have had 7 a limited review conducted by the Department of Healthcare 8 and Family Services and will not hold up enacting the rate 9 increase, with the Department of Healthcare and Family 10 Services. 11 (2) After completing the calculation in paragraph (1), 12 any facility whose rate is less than the rate in effect on 13 June 30, 2019 shall have its rate restored to the rate in 14 effect on June 30, 2019 from the 20% of the funds set 15 aside. 16 (3) The remainder of the 20%, or $34,000,000, shall be 17 used to increase each facility's rate by an equal 18 percentage. 19 (k) During the first quarter of State Fiscal Year 2020, 20 the Department of Healthcare of Family Services must convene a 21 technical advisory group consisting of members of all trade 22 associations representing Illinois skilled nursing providers 23 to discuss changes necessary with federal implementation of 24 Medicare's Patient-Driven Payment Model. Implementation of 25 Medicare's Patient-Driven Payment Model shall, by September 1, 26 2020, end the collection of the MDS data that is necessary to SB1490 - 14 - LRB104 09237 KTG 19294 b SB1490- 15 -LRB104 09237 KTG 19294 b SB1490 - 15 - LRB104 09237 KTG 19294 b SB1490 - 15 - LRB104 09237 KTG 19294 b 1 maintain the current RUG-IV Medicaid payment methodology. The 2 technical advisory group must consider a revised reimbursement 3 methodology that takes into account transparency, 4 accountability, actual staffing as reported under the 5 federally required Payroll Based Journal system, changes to 6 the minimum wage, adequacy in coverage of the cost of care, and 7 a quality component that rewards quality improvements. 8 (l) The Department shall establish per diem add-on 9 payments to improve the quality of care delivered by 10 facilities, including: 11 (1) Incentive payments determined by facility 12 performance on specified quality measures in an initial 13 amount of $70,000,000. Nothing in this subsection shall be 14 construed to limit the quality of care payments in the 15 aggregate statewide to $70,000,000, and, if quality of 16 care has improved across nursing facilities, the 17 Department shall adjust those add-on payments accordingly. 18 The quality payment methodology described in this 19 subsection must be used for at least State Fiscal Year 20 2023. Beginning with the quarter starting July 1, 2023, 21 the Department may add, remove, or change quality metrics 22 and make associated changes to the quality payment 23 methodology as outlined in subparagraph (E). Facilities 24 designated by the Centers for Medicare and Medicaid 25 Services as a special focus facility or a hospital-based 26 nursing home do not qualify for quality payments. SB1490 - 15 - LRB104 09237 KTG 19294 b SB1490- 16 -LRB104 09237 KTG 19294 b SB1490 - 16 - LRB104 09237 KTG 19294 b SB1490 - 16 - LRB104 09237 KTG 19294 b 1 (A) Each quality pool must be distributed by 2 assigning a quality weighted score for each nursing 3 home which is calculated by multiplying the nursing 4 home's quality base period Medicaid days by the 5 nursing home's star rating weight in that period. 6 (B) Star rating weights are assigned based on the 7 nursing home's star rating for the LTS quality star 8 rating. As used in this subparagraph, "LTS quality 9 star rating" means the long-term stay quality rating 10 for each nursing facility, as assigned by the Centers 11 for Medicare and Medicaid Services under the Five-Star 12 Quality Rating System. The rating is a number ranging 13 from 0 (lowest) to 5 (highest). 14 (i) Zero-star or one-star rating has a weight 15 of 0. 16 (ii) Two-star rating has a weight of 0.75. 17 (iii) Three-star rating has a weight of 1.5. 18 (iv) Four-star rating has a weight of 2.5. 19 (v) Five-star rating has a weight of 3.5. 20 (C) Each nursing home's quality weight score is 21 divided by the sum of all quality weight scores for 22 qualifying nursing homes to determine the proportion 23 of the quality pool to be paid to the nursing home. 24 (D) The quality pool is no less than $70,000,000 25 annually or $17,500,000 per quarter. The Department 26 shall publish on its website the estimated payments SB1490 - 16 - LRB104 09237 KTG 19294 b SB1490- 17 -LRB104 09237 KTG 19294 b SB1490 - 17 - LRB104 09237 KTG 19294 b SB1490 - 17 - LRB104 09237 KTG 19294 b 1 and the associated weights for each facility 45 days 2 prior to when the initial payments for the quarter are 3 to be paid. The Department shall assign each facility 4 the most recent and applicable quarter's STAR value 5 unless the facility notifies the Department within 15 6 days of an issue and the facility provides reasonable 7 evidence demonstrating its timely compliance with 8 federal data submission requirements for the quarter 9 of record. If such evidence cannot be provided to the 10 Department, the STAR rating assigned to the facility 11 shall be reduced by one from the prior quarter. 12 (E) The Department shall review quality metrics 13 used for payment of the quality pool and make 14 recommendations for any associated changes to the 15 methodology for distributing quality pool payments in 16 consultation with associations representing long-term 17 care providers, consumer advocates, organizations 18 representing workers of long-term care facilities, and 19 payors. The Department may establish, by rule, changes 20 to the methodology for distributing quality pool 21 payments. 22 (F) The Department shall disburse quality pool 23 payments from the Long-Term Care Provider Fund on a 24 monthly basis in amounts proportional to the total 25 quality pool payment determined for the quarter. 26 (G) The Department shall publish any changes in SB1490 - 17 - LRB104 09237 KTG 19294 b SB1490- 18 -LRB104 09237 KTG 19294 b SB1490 - 18 - LRB104 09237 KTG 19294 b SB1490 - 18 - LRB104 09237 KTG 19294 b 1 the methodology for distributing quality pool payments 2 prior to the beginning of the measurement period or 3 quality base period for any metric added to the 4 distribution's methodology. 5 (2) Payments based on CNA tenure, promotion, and CNA 6 training for the purpose of increasing CNA compensation. 7 It is the intent of this subsection that payments made in 8 accordance with this paragraph be directly incorporated 9 into increased compensation for CNAs. As used in this 10 paragraph, "CNA" means a certified nursing assistant as 11 that term is described in Section 3-206 of the Nursing 12 Home Care Act, Section 3-206 of the ID/DD Community Care 13 Act, and Section 3-206 of the MC/DD Act. The Department 14 shall establish, by rule, payments to nursing facilities 15 equal to Medicaid's share of the tenure wage increments 16 specified in this paragraph for all reported CNA employee 17 hours compensated according to a posted schedule 18 consisting of increments at least as large as those 19 specified in this paragraph. The increments are as 20 follows: an additional $1.50 per hour for CNAs with at 21 least one and less than 2 years' experience plus another 22 $1 per hour for each additional year of experience up to a 23 maximum of $6.50 for CNAs with at least 6 years of 24 experience. For purposes of this paragraph, Medicaid's 25 share shall be the ratio determined by paid Medicaid bed 26 days divided by total bed days for the applicable time SB1490 - 18 - LRB104 09237 KTG 19294 b SB1490- 19 -LRB104 09237 KTG 19294 b SB1490 - 19 - LRB104 09237 KTG 19294 b SB1490 - 19 - LRB104 09237 KTG 19294 b 1 period used in the calculation. In addition, and additive 2 to any tenure increments paid as specified in this 3 paragraph, the Department shall establish, by rule, 4 payments supporting Medicaid's share of the 5 promotion-based wage increments for CNA employee hours 6 compensated for that promotion with at least a $1.50 7 hourly increase. Medicaid's share shall be established as 8 it is for the tenure increments described in this 9 paragraph. Qualifying promotions shall be defined by the 10 Department in rules for an expected 10-15% subset of CNAs 11 assigned intermediate, specialized, or added roles such as 12 CNA trainers, CNA scheduling "captains", and CNA 13 specialists for resident conditions like dementia or 14 memory care or behavioral health. 15 (m) The Department shall work with nursing facility 16 industry representatives to design policies and procedures to 17 permit facilities to address the integrity of data from 18 federal reporting sites used by the Department in setting 19 facility rates. 20 (Source: P.A. 102-77, eff. 7-9-21; 102-558, eff. 8-20-21; 21 102-1035, eff. 5-31-22; 102-1118, eff. 1-18-23; 103-102, 22 Article 40, Section 40-5, eff. 1-1-24; 103-102, Article 50, 23 Section 50-5, eff. 1-1-24; 103-593, eff. 6-7-24; 103-605, eff. 24 7-1-24.) SB1490 - 19 - LRB104 09237 KTG 19294 b