Oklahoma 2024 2024 Regular Session

Oklahoma Senate Bill SB1417 Introduced / Bill

Filed 12/15/2023

                     
 
 
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STATE OF OKLAHOMA 
 
2nd Session of the 59th Legislature (2024) 
 
SENATE BILL 1417 	By: Rosino 
 
 
 
 
 
AS INTRODUCED 
 
An Act relating to the state Medicaid program; 
amending 56 O.S. 2021, Section 1011.5 , which relates 
to the nursing facility incentive re imbursement rate 
plan; modifying amount of certain reserve d funds; 
removing certain limitations on deductions and 
payments; adding certain outcomes metrics; modifying 
terminology; clarifying language; providing for 
establishment of certain benchmarks; modi fying 
certain method of reporting; authorizing the Oklahoma 
Health Care Authority to take certain actions 
depending on certain factors; amending 63 O.S. 2021, 
Section 1-1925.2, which relates to reimbursements 
from the Nursing Facility Quality of Care Fund ; 
modifying and adding components in certain payment 
methodology; requiring certain adjust ments; removing 
certain provisions relating to payment rates; 
directing certain alloc ations; requiring development 
of certain add-on rate; directing certain transition 
of payment rate methodology; requiring the Authority 
to implement certain scho larship program subject to 
available funding; updating statutory language ; 
providing an effective date; and declaring an 
emergency. 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     AMENDATORY     56 O.S. 2021, Section 1011.5, is 
amended to read as follows: 
Section 1011.5. A.  1.  The Oklahoma Health Ca re Authority 
shall develop an incentive reimbursement rate plan for nursing   
 
 
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facilities focused on improving resident outcomes and resident 
quality of life. 
2.  Under the current rate methodology, the The Authority shall 
reserve funds above the average of Five Dollars ($5.00) per patient 
day designated for incentive payment in the curr ently approved 
Medicaid state plan for the quality assurance component that nursing 
facilities can earn for improvement or perfor mance achievement of 
resident-centered outcomes metrics.  To fund the quality assurance 
component, Two Dollars ($2.00) shall be deducted from each nursing 
facility’s per diem rate, and matched with Three Do llars ($3.00) per 
day funded by the Authority.  Payments to nursing facilities that 
achieve specific metrics shall be treated as an “add back” to their 
net reimbursement per die m.  Dollar values assigned to each metric 
shall be determined so that an average of the five -dollar-quality 
incentive is made to qualifying nursin g facilities The Authority 
shall determine the dollar amount for each resident-centered 
outcomes metric under the incentive reimbursement rate plan . 
3.  Pay-for-performance payments to contracted nursing 
facilities may be earned quarterly and shall be based on the 
following outcomes metrics : 
a. facility-specific performance achievement of four 
equally-weighted equally weighted, Long-Stay Quality 
Measures, as defined by the Centers for Medicare and   
 
 
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Medicaid Services (CMS) and as provided by 
subparagraph a of paragraph 6 of this subsection , 
b. completion of required h ours of a training component 
as provided by subparagraph b of paragraph 6 of this 
subsection, 
c. achievement of staffing retention and direct care 
component benchmarks as provided by subparagraph c of 
paragraph 6 of this subsection , and 
d. achievement of satisfaction survey benchmarks as 
provided by subparagraph d of paragraph 6 of this 
subsection. 
4.  Contracted Medicaid long -term care providers may earn 
payment by achieving either five percent (5%) relative improvement 
each quarter from baseline or by ach ieving the National Average 
Benchmark or better fo r each individual quality metric. 
5. Pursuant to federal Medicaid approval, an y funds that remain 
as a result of providers failing to meet the quality assurance 
benchmarks of the outcomes metrics established by this subsection 
shall be pooled and redistri buted to those who achieve the quality 
assurance metrics benchmarks each quarter.  If federal approval is 
not received, any remaining funds shall be deposited in the Nursing 
Facility Quality of Care Fund au thorized in Section 2002 of th is 
title.   
 
 
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6. 5.  The Authority shall establish an advi sory group with 
consumer, provider and state agency representation to recommend 
quality measures benchmarks for outcomes metrics, other than the 
benchmarks specified in paragraph 6 of this subsection, to be 
included in the pay-for-performance program and to provide feedback 
on program performance and recommendations for improvement.  The 
quality measures Such benchmarks shall be reviewed annually and 
shall be subject to chan ge every three (3) years throu gh the 
agency’s promulgation of rules.  The Authority shall insure ensure 
adherence to the followin g criteria in determining the quality 
measures benchmarks: 
a. provides direct benefit to resident c are outcomes, 
b. applies to long-stay residents, and 
c. addresses a need for q uality improvement using 
criteria including, but not limited to, the Centers 
for Medicare and Medicaid Services (CMS) ranking for 
Oklahoma. 
7. 6.  The Authority shall begin administer the pay-for-
performance program focusing on improvin g the following CMS nursing 
home quality measures utilizing the following benchmarks for 
outcomes metrics: 
a. achievement of either five percent (5%) relative 
improvement each quarter from baseline or by achieving 
the national average benchmark or better for each of   
 
 
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the following equally weighted CMS Long-Stay Quality 
Measures: 
a. percentage of long-stay, high-risk residents with 
pressure ulcers 
(1) percentage of long-stay, high-risk residents with 
falls, 
b. (2) percentage of long-stay residents who lose 
too much weight, 
c. (3) percentage of long-stay residents with a 
urinary tract infection, and 
d. (4) percentage of long-stay residents who got 
an antipsychotic medication , 
b. completion of training hours required by the Authority 
through distance learning or in -person training on: 
(1) fall prevention, 
(2) mental health care, 
(3) techniques to manage care, 
(4) pressure ulcer care, or 
(5) any other subject approved by the Authority, 
c. achievement of the following staffing retention and 
direct care hour benchmarks: 
(1) retention of not less than fifty percent (50%) of 
registered nurses for twelve (12) months ,   
 
 
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(2) retention of not less than sixty percent (60%) of 
certified nurse aides for twelve (12) months , and 
(3) provision of direct care hours every three (3) 
months in accordance with a benchmark established 
by the Authority, and 
d. achievement of benchmarks established by the Authority 
for satisfaction surveys of: 
(1) residents and families of residents, and 
(2) staff of the facility. 
B.  The Oklahoma Health Care Authority shall negotiate with the 
Centers for Medicare and Medicaid Services to include the au thority 
to base provider reimbursement rates for nursing facilities on the 
criteria specified in subsection A of this section. 
C.  The Oklahoma Health Care Authority shall audit the program 
to ensure transparency and integrity. 
D.  The Oklahoma Health Care Authority shall provide 
electronically submit an annual report of the incentive 
reimbursement rate plan to the Governor, the S peaker of the House of 
Representatives, and the Pr esident Pro Tempore of the Senate by 
December 31 of each year.  The report shal l include, but not be 
limited to, an analysis of the previous fiscal year including 
incentive payments, ratings, and notable trends. 
E.  The Oklahoma Health Care Authority may change, add, or 
exclude any outcomes metric from the incentive reimbursement rate   
 
 
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plan based on availability of funding, changes to metrics made by 
the Centers for Medicare and Medicaid Services, and quality needs of 
nursing facilities in this state as determined by the Authority. 
SECTION 2.     AMENDATORY     63 O.S. 2021, Section 1-1925.2, is 
amended to read as follows: 
Section 1-1925.2. A.  The Oklahoma Health Care Authority shall 
fully recalculate and reimburse nursing facilities and I ntermediate 
Care Facilities for Individuals with Intellectual Disabilities 
(ICFs/IID) from the Nursing Facility Quality of Care Fund beginning 
October 1, 2000, the average actual, audited costs reflected in 
previously submitted cost reports for the cost -reporting period that 
began July 1, 1998, and ended June 30, 1999, inflated by th e 
federally published inflationary factors for the two (2 ) years 
appropriate to reflect present-day costs at the midpoint of the July 
1, 2000, through June 30, 2001, rate year. 
1.  The recalculations provided for in this subsection shall be 
consistent for both nursing facilities and Intermediate Care 
Facilities for Individuals with Intellectual Disabilities 
(ICFs/IID). 
2.  The recalculated reimbursement rate shall be implemented 
September 1, 2000. 
B.  1.  From September 1, 2000, through August 31, 2001, all 
nursing facilities subject to the Nursing Home Care Act, in addition 
to other state and federal requirements related to the staffing of   
 
 
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nursing facilities, shall maintain the following minimum direct -
care-staff-to-resident ratios: 
a. from 7:00 a.m. to 3:00 p.m., one direct -care staff to 
every eight residents, or major fraction thereof, 
b. from 3:00 p.m. to 11:0 0 p.m., one direct-care staff to 
every twelve residents, or major fra ction thereof, and 
c. from 11:00 p.m. to 7:00 a.m., one direct -care staff to 
every seventeen residents, or major fraction thereof. 
2.  From September 1, 2001, through August 31, 2003, nursing 
facilities subject to the Nursing Home Care Act and Intermediat e 
Care Facilities for Individuals with Intellectual Disabilities 
(ICFs/IID) with seventeen or more beds shall maintain, in addition 
to other state and federal requirements related to the s taffing of 
nursing facilities, the following minimum direct -care-staff-to-
resident ratios: 
a. from 7:00 a.m. to 3:00 p.m., one direct -care staff to 
every seven residents, or major fraction thereof, 
b. from 3:00 p.m. to 11:00 p.m., one direct-care staff to 
every ten residents, or major fraction thereof, and 
c. from 11:00 p.m. to 7:00 a.m., one direct -care staff to 
every seventeen residents, or major fraction thereof. 
3.  On and after October 1, 2019, nursing facilities subject to 
the Nursing Home Care Act an d Intermediate Care Facilities for 
Individuals with Intellectual Disa bilities (ICFs/IID) with seventeen   
 
 
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or more beds shall maintain, in addition to other state and federal 
requirements related to the staff ing of nursing facilities, the 
following minimum direct -care-staff-to-resident ratios: 
a. from 7:00 a.m. to 3:00 p.m., one direct-care staff to 
every six residents, or major fraction thereof, 
b. from 3:00 p.m. to 11:00 p.m., one direct -care staff to 
every eight residents, or major fraction thereof, and 
c. from 11:00 p.m. to 7:00 a.m., one direct-care staff to 
every fifteen residents, or major fraction thereof. 
4.  Effective immediately, facilities sha ll have the option of 
varying the starting times for the eight-hour shifts by one (1) hour 
before or one (1) hour after the times designated in this section 
without overlapping shifts. 
5. a. On and after January 1, 2020, a facility may implement 
twenty-four-hour-based staff scheduling; provided, 
however, such facility shall continue to maintain a 
direct-care service rate of at least two and nine 
tenths (2.9) hours of direct -care service per resident 
per day, the same to be calculated based on average 
direct care staff maintained over a twenty-four-hour 
period. 
b. At no time shall direct-care staffing ratios in a 
facility with twenty -four-hour-based staff-scheduling 
privileges fall below one direct-care staff to every   
 
 
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fifteen residents or major fraction thereof, and at 
least two direct-care staff shall be on duty and awake 
at all times. 
c. As used in this paragraph , “twenty-four-hour-based-
scheduling” means maintaining: 
(1) a direct-care-staff-to-resident ratio based on 
overall hours of direct -care service per resident 
per day rate of not less than two and ninety one -
hundredths (2.90) hours per day, 
(2) a direct-care-staff-to-resident ratio of at least 
one direct-care staff person on duty to every 
fifteen residents or major fraction thereof at 
all times, and 
(3) at least two direct-care staff persons on duty 
and awake at all times. 
6. a. On and after January 1, 2004, the State Department of 
Health shall require a facility to maintain the shift-
based, staff-to-resident ratios provided in paragraph 
3 of this subsection if the facility has been 
determined by the Department to be deficient with 
regard to: 
(1) the provisions of paragraph 3 of this subsection, 
(2) fraudulent reporting of st affing on the Quality 
of Care Report, or   
 
 
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(3) a complaint or survey investigation that has 
determined substandard quality of care as a 
result of insufficient staffing. 
b. The Department shall require a facility described in 
subparagraph a of this paragraph t o achieve and 
maintain the shift-based, staff-to-resident ratios 
provided in paragraph 3 of this subsection for a 
minimum of three (3) months before being considered 
eligible to implement twenty -four-hour-based staff 
scheduling as defined in subparagraph c of paragraph 5 
of this subsection. 
c. Upon a subsequent determination by the Department that 
the facility has achieved and maintained for at least 
three (3) months the shift -based, staff-to-resident 
ratios described in paragraph 3 of this subsection, 
and has corrected any deficiency described in 
subparagraph a of this paragraph, the Department shall 
notify the facility of its eligibility to implement 
twenty-four-hour-based staff-scheduling privileges. 
7. a. For facilities that utilize twenty -four-hour-based 
staff-scheduling privileges, the Department shall 
monitor and evaluate facility compliance with the 
twenty-four-hour-based staff-scheduling staffing 
provisions of paragraph 5 of this su bsection through   
 
 
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reviews of monthly staffing reports, results of 
complaint investigations and inspections. 
b. If the Department identifies any quali ty-of-care 
problems related to insufficient staffing in such 
facility, the Department shall issue a directed plan 
of correction to the facility found to be out of 
compliance with the provisions of this subsection. 
c. In a directed plan of correction, the Department shall 
require a facility described in subparagraph b of this 
paragraph to maintain shift -based, staff-to-resident 
ratios for the following periods of time: 
(1) the first determination shall require that shift -
based, staff-to-resident ratios be ma intained 
until full compliance is achieved, 
(2) the second determination wit hin a two-year period 
shall require that shift -based, staff-to-resident 
ratios be maintained for a m inimum period of 
twelve (12) months, and 
(3) the third determination within a two -year period 
shall require that shift -based, staff-to-resident 
ratios be maintained.  The facility may appl y for 
permission to use twenty-four-hour staffing 
methodology after two (2) years.   
 
 
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C.  Effective September 1, 2002, facilities shall post the names 
and titles of direct-care staff on duty each day in a conspicuous 
place, including the name and title of the supervising nurse. 
D.  The State Commissioner of Health shall promu lgate rules 
prescribing staffing requirements for Intermediate Care Facilities 
for Individuals with Intellectual Disabilities serving six or fewer 
clients (ICFs/IID-6) and for Intermediate Care Facilities for 
Individuals with Intellectual Disabilities servi ng sixteen or fewer 
clients (ICFs/IID-16). 
E.  Facilities shall have the right to appeal and to the 
informal dispute resolution process with regard to pena lties and 
sanctions imposed due to staffing noncompliance. 
F.  1.  When the state Medicaid program r eimbursement rate 
reflects the sum of Ninety -four Dollars and eleven cents ($94.11), 
plus the increases in actual audited costs over and above the actual 
audited costs reflected in the cos t reports submitted for the most 
current cost-reporting period and th e costs estimated by the 
Oklahoma Health Care Authority to increase the direct -care, flexible 
staff-scheduling staffing level from two and eighty -six one-
hundredths (2.86) hours per day per occupied bed to three and two -
tenths (3.2) hours per day per occu pied bed, all nursing facilities 
subject to the provisions of the Nursing Home Care Act and 
Intermediate Care Facilities for Individuals with Intellectual 
Disabilities (ICFs/IID) with seve nteen or more beds, in addition to   
 
 
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other state and federal requiremen ts related to the staffing of 
nursing facilities, shall maintain direct -care, flexible staff-
scheduling staffing levels based on an overall three and two -tenths 
(3.2) hours per day per occupied bed. 
2.  When the state Medicaid program reimbursement rate r eflects 
the sum of Ninety-four Dollars and eleven cents ($94.11), plus the 
increases in actual audited costs over and above the actual audited 
costs reflected in the cost reports submitted for the most current 
cost-reporting period and the costs estimated b y the Oklahoma Health 
Care Authority to increase the direct -care flexible staff-scheduling 
staffing level from three and two -tenths (3.2) hours per day per 
occupied bed to three and eight -tenths (3.8) hours per day per 
occupied bed, all nursing facilities subject to the provisions of 
the Nursing Home Care Act and Intermediate Care Facilities for 
Individuals with Intellectual Disabilities (ICFs/IID) with seventeen 
or more beds, in addition to other state and federal requirements 
related to the staffing of nu rsing facilities, shall maintain 
direct-care, flexible staff -scheduling staffing levels based on an 
overall three and eight-tenths (3.8) hours per day per occupied bed. 
3.  When the state Medicaid program reimbursement rate reflects 
the sum of Ninety-four Dollars and eleven cents ($94.11), plus the 
increases in actual audited costs over and above the actual audited 
costs reflected in the cost reports submitted for the most current 
cost-reporting period and the costs estimated by the Oklahoma Health   
 
 
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Care Authority to increase the direct -care, flexible staff -
scheduling staffing level fr om three and eight-tenths (3.8) hours 
per day per occupied bed to four and o ne-tenth (4.1) hours per day 
per occupied bed, all nursing facilities subject to the provisions 
of the Nursing Home Care Act and Intermediate Care Facilities for 
Individuals with Intellectual Disabilities (ICFs/IID) with seventeen 
or more beds, in addition to other state and federal requ irements 
related to the staffing of nursing facilities, shall maintai n 
direct-care, flexible staff -scheduling staffing levels based on an 
overall four and one-tenth (4.1) hours per day per occupied bed. 
4.  The Commissioner shall promulgate rules for shift -based, 
staff-to-resident ratios for noncompliant facilities denotin g the 
incremental increases reflected in direct -care, flexible staff -
scheduling staffing levels. 
5.  In the event that the state Medicaid program reimbursement 
rate for facilities subject to the Nursing Home Care Act, and 
Intermediate Care Facilities for In dividuals with Intellectual 
Disabilities (ICFs/IID) having seventeen or more be ds is reduced 
below actual audited costs, the requirements for staffing rati o 
levels shall be adjusted to the appropriate levels provided in 
paragraphs 1 through 4 of this subs ection. 
G.  For purposes of this subsection: 
1.  “Direct-care staff” means any nursing or therapy staff who 
provides direct, hands -on care to residents in a nursing facility;   
 
 
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2.  Prior to September 1, 2003, activity and social services 
staff who are not pro viding direct, hands -on care to residents may 
be included in the direct -care-staff-to-resident ratio in any shift.  
On and after September 1, 2003, such pe rsons shall not be included 
in the direct-care-staff-to-resident ratio, regardless of their 
licensure or certification status; and 
3.  The administrator shall not be co unted in the direct-care-
staff-to-resident ratio regardless of the administrator ’s licensure 
or certification status. 
H. 1.  The Oklahoma Health Care Authority shall require all 
nursing facilities subject to the provisions of the Nursing Home 
Care Act and Intermediat e Care Facilities for Individuals with 
Intellectual Disabilities (ICFs/IID) with seventeen or more beds to 
submit a monthly report on staffing ratios on a form that the 
Authority shall develop. 
2.  The report shall document the extent to which such 
facilities are meeting or are failing to meet the minimum direct -
care-staff-to-resident ratios specified by this se ction.  Such 
report shall be available to the public upon request. 
3. The Authority may assess administrative penalties for the 
failure of any facility to submit the report as required by the 
Authority.  Provided, however:   
 
 
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a. administrative penalties shall not accrue until the 
Authority notifies the facility in writing th at the 
report was not timely submitted as required, and 
b. a minimum of a one-day penalty shall be assessed in 
all instances. 
4.  Administrative pena lties shall not be assessed for 
computational errors made in preparing the report. 
5.  Monies collected from administrative penalties shall be 
deposited in the Nursing Facility Quality of Care Fund and utilized 
for the purposes specified in the Oklahoma Healthcar e Initiative 
Act. 
I.  1.  All entities regulated by this state that provide long -
term care services shall utilize a single assessment tool to 
determine client services needs.  The tool shall be developed by the 
Oklahoma Health Care Authority in cons ultation with the State 
Department of Health. 
2. a. The Oklahoma Nursing Facility Funding Advisory 
Committee is hereby created and shall consist of the 
following: 
(1) four members selecte d by the Oklahoma Association 
of Health Care Providers, 
(2) three members selected by the Oklahoma 
Association of Homes and Services for the Aging, 
and   
 
 
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(3) two members selected by the State Council on 
Aging. 
The Chair shall be elected by the committee.  No state 
employees may be appointed to serve. 
b. The purpose of the adv isory committee will be to 
develop a new methodology for calculating state 
Medicaid program reimbursements t o nursing facilities 
by implementing facility -specific rates based on 
expenditures relating to direct care staffing.  No 
nursing home will receive less tha n the current rate 
at the time of implementation of facility -specific 
rates pursuant to this subpara graph. 
c. The advisory committee shall be staffed and advised by 
the Oklahoma Health Care Authority. 
d. The new methodology will be submitted for app roval to 
the Board of the Oklahoma Heal th Care Authority by 
January 15, 2005, and shall be finalized by July 1, 
2005.  The new methodology will apply only to new 
funds that become availab le for Medicaid nursing 
facility reimbursement after the methodology of this 
paragraph has been finalized.  Existing funds paid to 
nursing homes will not be subject to the meth odology 
of this paragraph.  The methodology as outlined in 
this paragraph will only be applied to any new funding   
 
 
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for nursing facilities appropriated above and beyond 
the funding amounts e ffective on January 15, 2005. 
e. The new methodology shall divide the payment into two 
components: 
(1) direct care which the nursing rate component, 
which shall consist of direct care and a nurse 
aide wage and promotion scale if utilized. 
(a) Direct care includes allowable costs for 
registered nurses, licensed practical 
nurses, certified medication aides and 
certified nurse aides.  The direct care 
component of the rate shall be a facility -
specific rate, directly related to each 
facility’s actual expenditures on direct 
care. 
(b) Effective July 1, 2025, the Authority shall 
design and implement an optional nurse aide 
wage and promotion scale for nursing 
facilities.  This program shall provide 
qualifying facilities with a subsidy 
payment, and 
(2) other costs.   
 
 
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f. The Oklahoma Health Care Authority, in calculating the 
base year prospective direct care rat e component, 
shall use the following criteria: 
(1) to construct an array of facility per diem 
allowable expenditures on direct care, the 
Authority shall use the most recent data 
available.  The limit on this array shall be no 
less than the ninetieth percentile, 
(2) each facility’s direct care base-year component 
of the rate shall be the lesser of the facility ’s 
allowable expenditures on direct car e or the 
limit, 
(3) effective July 1, 2025, the direct care payment 
amount of each facil ity shall be adjusted to 
reflect the resident case mix of each facility 
using a percentage of funds in the direct care 
pool as determined by the Authority , 
(4) other rate components shall be determined by t he 
Oklahoma Nursing Facility Funding Advisory 
Committee of the Authority in accordance with 
federal regulations and requirements, 
(4) (5) prior to July 1, 2020, the Authority shall 
seek federal approval to calculate th e upper 
payment limit under the authority of CMS   
 
 
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utilizing the Medicare equivalent payme nt rate, 
and 
(5) (6) if Medicaid payment rates to providers are 
adjusted, nursing home ra tes and Intermediate 
Care Facilities for Individuals with Intellectual 
Disabilities (ICFs/IID) rates shall not be 
adjusted less favorably than the average 
percentage-rate reduction or incr ease applicable 
to the majority of other provider groups . 
g. (1) Effective October 1, 2019, if sufficient funding 
is appropriated for a rate increa se, a new 
average rate for nursing facilities shall be 
established.  The rate shall be e qual to the 
statewide average cost as derived from audited 
cost reports for SFY 2018, end ing June 30, 2018, 
after adjustment for inflation.  After such new 
average rate has been established, the facility 
specific reimbursement rate shall be as follows: 
(a) amounts up to the ex isting base rate amount 
shall continue to be distributed a s a part 
of the base rate in accordance with the 
existing State Plan, and 
(b) to the extent the new rate excee ds the rate 
effective before the effective date of this   
 
 
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act, fifty percent (50%) of the resulting 
increase on October 1, 2019, shall be 
allocated toward an increase of the existing 
base reimbursement rate and distributed 
accordingly.  The remaining fifty percent 
(50%) of the increase shall be allocated in 
accordance with the currently approve d 70/30 
reimbursement rate meth odology as outlined 
in the existing State Plan. 
(2) Any subsequent rate increases, as determined 
based on the provisions set forth in thi s 
subparagraph, 
(7) effective July 1, 2025, the base rate of each 
facility shall be adjusted by a percentage 
determined by the Authority based on the 
facility’s performance in the CMS Five -Star 
Quality Rating System or similar program if the 
CMS Five-Star Quality Rating System is 
discontinued, 
(8) subsequently, for any ne w funds, seventy percent 
(70%) shall be allocated in accordance with the 
currently approved 70/30 reimbursement rate 
methodology to the direct care component of the 
nursing rate and thirty percent (30%) shall be   
 
 
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allocated for other costs under the nursing rate.  
The rate shall not exceed the upper paym ent limit 
established by the Medicare rate equivalent 
established by the federal CMS , 
(9) upon the effective date of this act, subject to 
the availability of f unds, the Authority shall 
develop an add-on rate for nursing facilities 
serving residents who have received a 
tracheostomy.  The Authority shall establish 
eligibility requirements for the add -on rate, and 
(10) the Authority shall transition the payment rate 
methodology of nursing facilities to a price -
based methodology when data for such a 
methodology becomes available and has been 
analyzed by the Authority . 
h. g. Effective October 1, 2019, in coordination with the 
rate adjustments identified in the precedi ng section, 
a portion of the funds s hall be utilized as follows: 
(1) effective October 1, 2019, the Oklahoma Health 
Care Authority shall increase the personal needs 
allowance for residents of nursing homes a nd 
Intermediate Care Facilities for Individuals with 
Intellectual Disabilities (ICFs/IID) from Fif ty 
Dollars ($50.00) per month to Seventy-five   
 
 
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Dollars ($75.00) per month per resident.  The 
increase shall be funded by Medicaid nursing home 
providers, by way of a reduction of eighty -two 
cents ($0.82) per day deducted from the base 
rate.  Any additional cost shall be funded by the 
Nursing Facility Quality of Care Fund, and 
(2) effective January 1, 2020, all clinical employees 
working in a licensed nursing fac ility shall be 
required to receive at least four (4) hours 
annually of Alzheimer ’s or dementia training, to 
be provided and paid for by the facilities. 
3.  The Department of Human Services shall expand its st atewide 
toll-free, Senior-Info Line for senior citizen services to include 
assistance with or inf ormation on long-term care services in this 
state. 
4.  The Oklahoma Health Care Authority shall develop a nursing 
facility cost-reporting system that reflects the most current costs 
experienced by nursing and specializ ed facilities.  The Oklahoma 
Health Care Authority shall utilize the m ost current cost report 
data to estimate costs in determining daily per diem rates. 
5.  The Oklahoma Health Care Authority shal l provide access to 
the detailed Medicaid payment audit adjustments and implement an 
appeal process for disputed payment audit adjust ments to the 
provider.  Additionally, the Oklahoma Health Care Authority shall   
 
 
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make sufficient revisions to the nursing facility cost reporting 
forms and electronic data input system so as to clarify what 
expenses are allowable and appropriate for incl usion in cost 
calculations. 
J.  1.  When the state Medicaid program reimbursement rate 
reflects the sum of Ninety -four Dollars and eleven cents ($94.11), 
plus the increases in actual audited costs, over and above the 
actual audited costs reflected in the cost reports submitted for the 
most current cost-reporting period, and the direct -care, flexible 
staff-scheduling staffing level has been prospectively funded at 
four and one-tenth (4.1) hours per day per occupied bed, the 
Authority may apportion funds for the implementation of the 
provisions of this section. 
2.  The Authority shall make application to the United States 
Centers for Medicare and Medicaid Service for a waiver of the 
uniform requirement on health -care-related taxes as permitted by 
Section 433.72 of 42 C.F.R. 
3.  Upon approval of the waiver, the Authority shall develop a 
program to implement the provisions of the waiver as it relates to 
all nursing facilities. 
K.  Subject to the availability of funds, the Authority shall 
design and implement a sc holarship program for nurse aides who work 
in Medicaid-certified nursing facilities or Intermediate Care   
 
 
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Facilities for Individuals with Intellectual Disabilities 
(ICFs/IID). 
SECTION 3.  This act shall become effective July 1, 2024. 
SECTION 4.  It being immediately necessary for the preservation 
of the public peace, hea lth or safety, an emergency is hereby 
declared to exist, by reason whereof this act shall take effect and 
be in full force from and after its passage and approval. 
 
59-2-2722 DC 12/15/2023 3:47:15 PM