EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0462*
HOUSE BILL 462
J1, J3 4lr2132
HB 725/23 – HGO CF SB 328
By: Delegates Martinez, Acevero, Fair, Lehman, R. Lewis, and Woods
Introduced and read first time: January 22, 2024
Assigned to: Health and Government Operations
A BILL ENTITLED
AN ACT concerning 1
Funding for Wages and Benefits for Nursing Home Workers 2
(Nursing Home Staffing Crisis Funding Act of 2024) 3
FOR the purpose of requiring that the Governor’s proposed budget for certain fiscal years 4
include a certain percentage reimbursement rate increase for providers of certain 5
health care services under the Maryland Medical Assistance Program, the Maryland 6
Children’s Health Program, and the Community First Choice program; requiring 7
nursing homes to annually submit a certain cost report to the Maryland Department 8
of Health; requiring that a certain percentage of the funding increase for certain 9
fiscal years be used to fund wages and benefits for certain workers; and generally 10
relating to the reimbursement of service providers under the Maryland Medical 11
Assistance Program, the Maryland Children’s Health Program, and the Community 12
First Choice program. 13
BY repealing and reenacting, with amendments, 14
Article – Health – General 15
Section 16–201.4 16
Annotated Code of Maryland 17
(2023 Replacement Volume) 18
BY adding to 19
Article – Health – General 20
Section 16–209 21
Annotated Code of Maryland 22
(2023 Replacement Volume) 23
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 24
That the Laws of Maryland read as follows: 25
Article – Health – General 26
2 HOUSE BILL 462
16–201.4. 1
(a) (1) In this section the following words have the meanings indicated. 2
(2) “Provider” means a provider of: 3
(i) Nursing home services; 4
(ii) Medical day care services; 5
(iii) Private duty nursing services; 6
(iv) Personal care services; 7
(v) Home– and community–based services; and 8
(vi) Services provided through the Community First Choice program. 9
(3) “Rate” means the reimbursement rate paid by the Department to 10
providers of nursing home, medical day care, private duty nursing, personal care, and 11
home– and community–based services and services provided through the Community First 12
Choice program from the State General Fund, Maryland Medical Assistance Program 13
funds, other State or federal funds, or a combination of these funds. 14
(b) (1) The Governor’s proposed budget for fiscal year 2021 shall include a 4% 15
rate increase for providers over the funding provided in the legislative appropriation for 16
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 17
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 18
Maryland Children’s Health Program – Medical Care Programs Administration. 19
(2) The Governor’s proposed budget for fiscal year 2022 shall include a 4% 20
rate increase for providers over the funding provided in the legislative appropriation for 21
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 22
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 23
Maryland Children’s Health Program – Medical Care Programs Administration. 24
(3) The Governor’s proposed budget for fiscal year 2023 shall include a 4% 25
rate increase for providers over the funding provided in the legislative appropriation for 26
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 27
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 28
Maryland Children’s Health Program – Medical Care Programs Administration. 29
(4) The Governor’s proposed budget for fiscal year 2024 shall include a 4% 30
rate increase for providers over the funding provided in the legislative appropriation for 31
the immediately preceding fiscal year in Program M00Q01.03 Medical Care Provider 32
Reimbursements – Medical Care Programs Administration and Program M00Q01.07 33
Maryland Children’s Health Program – Medical Care Programs Administration. 34 HOUSE BILL 462 3
(5) THE GOVERNOR’S PROPOSED BUDGET FO R FISCAL YEAR 2026 1
SHALL INCLUDE AN 8% RATE INCREASE FOR PR OVIDERS OVER THE FUN DING 2
PROVIDED IN THE LEGI SLATIVE APPROPRIATIO N FOR THE IMMEDIATEL Y 3
PRECEDING FISCAL YEA R IN PROGRAM M00Q01.03 MEDICAL CARE PROVIDER 4
REIMBURSEMENTS – MEDICAL CARE PROGRAMS ADMINISTRATION AND PROGRAM 5
M00Q01.07 MARYLAND CHILDREN’S HEALTH PROGRAM – MEDICAL CARE 6
PROGRAMS ADMINISTRATION . 7
(6) THE GOVERNOR’S PROPOSED BUDGET FO R FISCAL YEAR 2027 8
SHALL INCLUDE AN 8% RATE INCREASE FOR PR OVIDERS OVER THE FUN DING 9
PROVIDED IN THE LEGI SLATIVE APPROPRIATION FOR TH E IMMEDIATELY 10
PRECEDING FISCAL YEA R IN PROGRAM M00Q01.03 MEDICAL CARE PROVIDER 11
REIMBURSEMENTS – MEDICAL CARE PROGRAMS ADMINISTRATION AND PROGRAM 12
M00Q01.07 MARYLAND CHILDREN’S HEALTH PROGRAM – MEDICAL CARE 13
PROGRAMS ADMINISTRATION . 14
(7) THE GOVERNOR’S PROPOSED BUDGET FO R FISCAL YEAR 2028 15
SHALL INCLUDE AN 8% RATE INCREASE FOR PR OVIDERS OVER THE FUN DING 16
PROVIDED IN THE LEGI SLATIVE APPROPRIATIO N FOR THE IMMEDIATEL Y 17
PRECEDING FISCAL YEA R IN PROGRAM M00Q01.03 MEDICAL CARE PROVIDER 18
REIMBURSEME NTS – MEDICAL CARE PROGRAMS ADMINISTRATION AND PROGRAM 19
M00Q01.07 MARYLAND CHILDREN’S HEALTH PROGRAM – MEDICAL CARE 20
PROGRAMS ADMINISTRATION . 21
[(5)] (8) The Governor’s proposed budget for fiscal year 2021 and each 22
fiscal year thereafter shall be presented in the same manner, including object and program 23
information, as in the fiscal year 2020 budget. 24
16–209. 25
(A) ON OR BEFORE SEPTEMBER 1 EACH YEAR, BEGINNING IN 2026, EACH 26
NURSING HOME SHALL S UBMIT TO THE DEPARTMENT A COST REP ORT IN THE FORM 27
AND MANNER REQUIRED BY THE DEPARTMENT . 28
(B) THE COST REPORT REQUI RED UNDER SUBSECTION (A) OF THIS SECTION 29
SHALL: 30
(1) INCLUDE: 31
(I) DOCUMENTATION OF WAGE DISBURSEMENT ; AND 32
(II) ANY OTHER INFORMATION THE DEPARTMENT DETERMINES 33
IS APPROPRIATE ; AND 34 4 HOUSE BILL 462
(2) BE SIGNED BY AN AUTHORIZE D REPRESENTATIVE OF THE 1
NURSING HOME UNDER P ENALTY OF PERJURY . 2
(C) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 3
DEPARTMENT MAY TAKE A PPROPRIATE ENFORCEME NT ACTION AGAINST A 4
NURSING HOME IF THE NURSING HOME : 5
(I) FAILS TO SUBMIT A COST REPORT A S REQUIRED; 6
(II) SUBMITS AN INACCURATE , INCOMPLETE , OR INVALID COST 7
REPORT; OR 8
(III) FAILS TO PAY THE WAGE S IN THE AMOUNT REQU IRED. 9
(2) THE ENFORCEMENT ACTIO N THAT THE DEPARTMENT MAY TAKE 10
UNDER PARAGRAPH (1) OF THIS SUBSECTIO N MAY INCLUDE ANY OF THE 11
FOLLOWING: 12
(I) RECOUPMENT BY THE DEPARTMENT OF FUNDING 13
RESULTING FROM THE R EIMBURSEMENT RATE IN CREASE PROVIDED FOR UNDER § 14
16–201.4(B) OF THIS SUBTITLE; 15
(II) IMPOSITION OF A CORRE CTIVE PLAN; AND 16
(III) SUSPENSION OR TERMINATION FROM THE PROGRAM. 17
SECTION 2. AND BE IT FURTHER ENACTED, That: 18
(a) (1) For each of fiscal years 2026, 2027, and 2028, 75% of the funding 19
increase provided in the legislative appropriation for Program M00Q01.03 Medical Care 20
Provider Reimbursements – Medical Care Programs Administration in § 16–201.4(b)(5) 21
through (7) of the Health – General Article, as enacted by Section 1 of this Act, shall be 22
used to fund wages and benefits for workers and staff providing direct care, indirect care, 23
direct care support services, and other patient care to residents in a nursing home. 24
(2) Administrative staff and workers who do not provide direct care to 25
residents are not eligible to take part in the wage increase provided for under paragraph 26
(1) of this subsection. 27
(b) Nursing home providers who receive funding increases in accordance with § 28
16–201.4(b)(5) through (7) of the Health – General Article, as enacted by Section 1 of this 29
Act, shall document the disbursement of the funds. 30
HOUSE BILL 462 5
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect June 1
1, 2024. 2