Oklahoma 2025 2025 Regular Session

Oklahoma Senate Bill SB904 Amended / Bill

Filed 03/06/2025

                     
 
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SENATE FLOOR VERSION 
March 5, 2025 
 
 
COMMITTEE SUBSTITUTE 
FOR 
SENATE BILL NO. 904 	By: Rosino of the Senate 
 
  and 
 
  Stinson of the House 
 
 
 
 
 
[ state Medicaid program - reimbursement rate plan - 
qualification criteria - allocation - staff retention 
initiative - payment - reporting - advisory committee 
- apportionment - effective date -  
 	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 Care Authority 
shall develop an incentive reimbursement rate plan for nursing 
facilities focused on improving resident outcomes and resident 
quality of life. 
2.  Under the current rate methodology, the Authority shall 
reserve Five Dollars ($5.00) per patient day designated for the 
quality assurance component that nursing facilities can earn for 
improvement or performance achievement of resident-centered outcomes   
 
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metrics the long-stay quality measures ra tings specified in 
paragraph 4 of this subsection .  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 Dollars ($3.00) per 
day funded by the Authority.  Payments to nursing facilities that 
achieve specific metrics qualify under paragraph 4 of this 
subsection shall be treated as an “add back” to their net 
reimbursement per diem.  Dollar values assigned to each metric 
rating shall be determined so that an average of the five-dollar-
quality five-dollar quality incentive is made to qualifying nursing 
facilities. 
3.  Pay-for-performance payments may be earned quarterly and 
based on facility-specific performance achievement of four equally -
weighted, Long-Stay Quality Measures as defined by the facility’s 
long-stay quality measures rating in the nursing home Five -Star 
Quality Rating System of the Centers for Medicare and Medicaid 
Services (CMS). 
4.  Contracted Medicaid long -term care providers may earn 
payment by achieving either five percent (5%) relative improvement 
each quarter from baseline or by achieving the National Average 
Benchmark or better for each individual quality metric at least a 
two-star long-stay quality measures rating.  Program funds shall be 
allocated as follows:   
 
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a. facilities with a two -star rating shall receive forty 
percent (40%) of the per -day amount reserved for the 
quality assurance component per Medicaid patient day, 
b. facilities with a three -star rating shall receive 
sixty percent (60%) of the p er-day amount reserved for 
the quality assurance component per Medicaid patient 
day, 
c. facilities with a four -star rating shall receive 
eighty percent (80%) of the per -day amount reserved 
for the quality assurance component per Medicaid 
patient day, and 
d. facilities with a five -star rating shall receive one 
hundred percent (100%) of the per -day amount reserved 
for the quality assurance component per Medicaid 
patient day. 
5.  As soon as practicable after receipt of any necessary 
federal approval, and subje ct to appropriation of funds for a rate 
increase to nursing facilities, facilities may earn up to Three 
Dollars ($3.00) per Medicaid patient day by participating in an 
optional staff retention initiative for Registered Nurses, Licensed 
Practical Nurses, an d Certified Nurse Aides .  Payments shall be 
allocated at One Dollar and fifty cents ($1.50) per quality measure, 
subject to the following conditions:   
 
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a. a minimum of sixty percent (60%), or a percentage 
determined by the Authority, of Registered Nurses and 
Licensed Practical Nurses must be retained for not 
less than twelve (12) months, with compliance measured 
quarterly, 
b. a minimum of fifty percent (50%), or a percentage 
determined by the Authority, of Certified Nurse Aides 
must be retained for not less t han twelve (12) months, 
with compliance measured quarterly, 
c. participating facilities must subm it an annual 
retention plan to the Authority by June 30 of each 
year, and 
d. participating facilities shall receive incentive 
payments under this paragraph dur ing the first year to 
support retention efforts.  Beginning in the second 
year and thereafter, facilities must meet program 
metrics as provided by this paragraph to remain 
eligible for payments. 
6. Pursuant to federal Medicaid approval, any funds that rem ain 
as a result of providers failing to meet the quality assurance 
metrics after all the allocati ons under this subsection have been 
made shall be pooled and redistributed to those who achieve the 
quality assurance metrics each quarter qualify for payments under 
this subsection.  If federal approval is not received, any remaining   
 
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funds shall be deposited in the Nursing Facility Quality of Care 
Fund authorized in Section 2002 of this title. 
6.  The Authority shall establish an advisory group with 
consumer, provider and state agency representation to recommend 
quality measures to be included in the pay -for-performance program 
and to provide feedback on program performance and recommendations 
for improvement.  The quality measures shall be reviewed annually 
and shall be subject to change every three (3) years through the 
agency’s promulgation of rules.  The Authority shall insure 
adherence to the following criteria in determining the quality 
measures: 
a. provides direct benefit to resident care outcomes, 
b. applies to long-stay residents, and 
c. addresses a need for quality improvement using the 
Centers for Medicare and Medicaid Services (CMS) 
ranking for Oklahoma. 
7.  The Authority shall begin the pay -for-performance program 
focusing on improving the following C MS nursing home quality 
measures: 
a. percentage of long-stay, high-risk residents with 
pressure ulcers, 
b. percentage of long-stay residents who lose too much 
weight,   
 
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c. percentage of long-stay residents with a urinary tract 
infection, and 
d. percentage of long-stay residents who got an 
antipsychotic medication. 
B.  The Oklahoma Health Care Authority shall negotiate with the 
Centers for Medicare and Medicaid Services to include the authority 
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 inc entive 
reimbursement rate plan to the Governor, the Speaker of the House of 
Representatives, and the President Pro Tempore of the Senate by 
December 31 of each year.  The report shall include, but not be 
limited to, an analysis of the previous fiscal year including 
incentive payments, ratings, and notable trends. 
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 Intermediate 
Care Facilities for Individuals with Intellectual D isabilities 
intermediate care facilities for individuals with intellectual 
disabilities (ICFs/IID) from the Nursing Facility Quality of Care   
 
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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 the 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 Indivi duals with Intellectual Disabilities 
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 
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 11:00 p.m., one direct -care staff to 
every twelve 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.   
 
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2.  From September 1, 2001, through August 31, 2003, nursing 
facilities subject to the Nursing Home Care Act and Intermediate 
Care Facilities for Individuals with Intellectual Disabilities 
intermediate 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 
staffing 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 and Intermediate Care Facilities for 
Individuals with Intellectua l Disabilities intermediate 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 staffing of nursing 
facilities, the followi ng 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,   
 
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b. from 3:00 p.m. to 11:00 p.m., one direct -care staff to 
every eight residents, or major fraction the reof, and 
c. from 11:00 p.m. to 7:00 a.m., one direct -care staff to 
every fifteen residents, or m ajor fraction thereof. 
4.  Effective immediately, facilities shall 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 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 
fifteen residents or major fraction thereof, and at 
least two direct-care staff shall be on duty and awake 
at all times.   
 
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c. As used in this paragraph, “twenty-four-hour-based-
scheduling” “twenty-four-hour-based staff 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) two and nine-tenths (2.9) 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 fa cility 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 staffing 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 r equire a facility described in 
subparagraph a of this paragraph to achieve and 
maintain the shift-based, staff-to-resident ratios 
provided in paragraph 3 of th is 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 sha ll 
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 w ith the 
twenty-four-hour-based staff-scheduling staffing 
provisions of paragraph 5 of this subsec tion through   
 
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reviews of monthly staffing reports, results of 
complaint investigations and inspections. 
b. If the Department identifies any quality -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 maintained 
until full compliance is achieved, 
(2) the second determination within a two -year period 
shall require that shift -based, staff-to-resident 
ratios be maintained for a minimum 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 apply fo r 
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 promulgate rules 
prescribing staffing requirements for Intermediate Care Facilities 
for Individuals with Intellectual Disabilities intermediate care 
facilities for individuals with intellectual dis abilities serving 
six or fewer clients (ICFs/IID -6) and for Intermediate Care 
Facilities for Individuals with Intellectual Disabilities 
intermediate care facil ities for individuals with intellectual 
disabilities serving 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 penalties and 
sanctions imposed due to staffing noncompliance. 
F.  1.  When the state Medicaid program reimbursement rate 
reflects the sum of Ni nety-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 s ubmitted for the most 
current cost-reporting period and the 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 occupied bed, all nursing facilities 
subject to the provisions of the Nursing Home Care Act and   
 
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Intermediate Care Facilities for Individuals with Intellectual 
Disabilities intermediate care facilities fo r individuals with 
intellectual disabilities (ICFs/IID) with seventeen or more beds, in 
addition to other state and federal requirements related to the 
staffing of nursing facilities, shall maintain direct -care, flexible 
staff-scheduling staffing levels ba sed on an overall three and two -
tenths (3.2) hours per day per occupied bed. 
2.  When the state M edicaid 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 
Care Authority to increase the direct -care flexible staff-scheduling 
staffing level from three and t wo-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 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 nursing 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.   
 
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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 
Care Authority to increase the direct -care, flexible staff-
scheduling staffing level from three and eight -tenths (3.8) hours 
per day per occupied bed t o four and one-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 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 nur sing facilities, shall 
maintain 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 no ncompliant facilities denoting 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 Individuals with Intellectual   
 
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Disabilities intermediate care faciliti es for individuals with 
intellectual disabilities (ICFs/IID) having seventeen or more beds 
is reduced below actual audited costs, the requirements for staffing 
ratio levels shall be adjusted to the appropriate levels provided in 
paragraphs 1 through 4 of this subsection. 
G.  For purposes of this subsection section: 
1.  “Direct-care staff” means any nursing or therapy staff who 
provides direct, hands -on care to residents in a nursing facility; 
2.  Prior to September 1, 2003, activity and social services 
staff who are not providing 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 persons 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 counted in the direct -care-
staff-to-resident ratio regardless of the administ rator’s licensure 
or certification status. 
H.  1.  The Oklahoma Health Care Authority shall requi re all 
nursing facilities subject to the provisions of the Nursing Home 
Care Act and Intermediate Care Facilities for Individuals with 
Intellectual Disabilitie s intermediate 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.   
 
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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 section.  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: 
a. administrative penalties shall not accrue until the 
Authority notifies the facility in writing that 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 penalties shall not be assessed for 
computational errors made in preparing the report. 
5.  Monies collected from administrative penalties shall be 
deposited in the Nursing Facili ty Quality of Care Fund established 
in Section 2002 of Title 56 of the Oklahoma Statutes and utilized 
for the purposes specified in the Oklahoma Healthcare Initiative Act 
such section. 
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 s hall be developed by the 
Oklahoma Health Care Authority in consultation with the State 
Department of Health.   
 
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2. a. The Oklahoma Nursing Facility Funding Adviso ry 
Committee is hereby created and shall consist of the 
following: 
(1) four members selected by the Oklahoma Association 
of Health Care Providers Care Providers Oklahoma 
or its successor organization , 
(2) three members selected by the Oklahoma 
Association of Homes and Services for the Aging 
LeadingAge Oklahoma or its successor 
organization, and 
(3) two members selected by the State Council on 
Aging State Council on Aging and Adult Protective 
Services. 
The Chair chair shall be elected by the committee.  No 
state employees may be appointed to serve. 
b. The purpose of the advisory committee will shall be 
to: 
(1) develop a new methodology for calculating state 
Medicaid program reimbursements to nursing 
facilities by implementing facility -specific 
rates based on expenditures relating to direct 
care staffing, and   
 
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(2) recommend changes to the incentive reimbur sement 
rate plan created under Section 1011.5 of Title 
56 of the Oklahoma Statutes . 
 No nursing home will shall receive less than the 
current rate at the time of implementation of 
facility-specific rates pursuant to division 1 of this 
subparagraph. 
c. The advisory committee shall be staffed and advised by 
the Oklahoma Health Care Authority. 
d. The new methodology will shall be submitted for 
approval to the Board of the Oklahoma Health Care 
Authority Board by January 15, 2005, and shall be 
finalized by July 1, 2005.  The new methodology will 
shall apply only to new funds that become available 
for Medicaid nursing facility reimbursement after the 
methodology of this paragraph has been finalized.  
Existing funds paid to nursing homes will shall not be 
subject to the methodology of this paragraph.  The 
methodology as outlined in this paragraph will shall 
only be applied to any new funding for nursing 
facilities appropriated above and beyond the funding 
amounts effective on January 15, 2005. 
e. The new methodology shall divide the payment into two 
components:   
 
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(1) direct care which includes allowable costs for 
registered nurses Registered Nurses, licensed 
practical nurses Licensed Practical Nurses , 
certified medication aides Certified Medication 
Aides and certified nurse aides 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, and 
(2) other costs. 
f. The Oklahoma Health Care Authority, in calculating the 
base year prospective direct care rate component, 
shall use the following criteria: 
(1) to construct an array of facility per diem 
allowable expenditures o n 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 care or the 
limit, 
(3) as soon as practicable after receipt of any 
necessary federal approval, and subject to   
 
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appropriation of funds for a rate increase to 
nursing facilities, the Authority shall 
incorporate a case-mix component into the payment 
rate methodology for nursing facilities.  The 
inclusion of the case -mix component shall occur 
upon the availability and analysis of the 
necessary data by the Authority.  Appropriated 
funds shall be allocated as follows: 
(a) fifty percent (50%) of funds shall be 
designated for the case -mix component, and 
(b) the remaining fifty percent (50%) of funds 
shall be allocated to the base rate 
component, 
(4) other rate components shall be determined by the 
Oklahoma Nursing Facility Funding Advisory 
Committee or the Authority in accordance with 
federal regulations and requirements, 
(4) (5) prior to July 1, 2020, the Authority shall 
seek federal approval to calculate the upper 
payment limit under the authority of CMS the 
Centers for Medicare and Medicaid S ervices (CMS) 
utilizing the Medicare equivalent payment rate, 
and   
 
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(5) (6) if Medicaid payment rat es to providers are 
adjusted, nursing home rates and Intermediate 
Care Facilities for Individuals with Intellectual 
Disabilities intermediate care facilities f or 
individuals with intellectual disabilities 
(ICFs/IID) rates shall not be adjusted less 
favorably than the average percentage -rate 
reduction or increase applicable to the majority 
of other provider groups. 
g. (1) Effective October 1, 2019, if sufficient funding 
is appropriated for a rate increase, a new 
average rate for nursing facilities shall be 
established.  The rate shall be equal to the 
statewide average cost as derived from audited 
cost reports for SFY 2018, ending 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 existing base rate amount 
shall continue to be distributed as a part 
of the base rate in accordance with the 
existing Medicaid State Plan, and 
(b) to the extent the new rate exceeds the rate 
effective before the effective date of this   
 
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act October 1, 2019, fifty percent (50%) of 
the resulting increase on October 1, 2019, 
shall be allocated toward an increase of t he 
existing base reimbursement rate and 
distributed accordingly.  The remaining 
fifty percent (50%) of the increase shall be 
allocated in accordance with the currently 
approved 70/30 reimbursement rate 
methodology as outlined in the existing 
Medicaid State Plan. 
(2) Any subsequent rate increases, as determined 
based on the provisions set forth in this 
subparagraph, shall be allocated in accordance 
with the currently approved 70/30 reimbursement 
rate methodology.  When the case-mix component is 
included in the rate methodology, fifty percent 
(50%) of the amount allocated to direct care 
shall be apportioned to the case -mix component.  
The rate shall not exceed the upper payment limit 
established by the Medicare rate equivalent 
established by the federal CMS. 
h. Effective October 1, 2019, in coordination with the 
rate adjustments identified in the precedin g section, 
a portion of the funds shall be utilized as follows:   
 
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(1) effective October 1, 2019, the Oklahoma Health 
Care Authority shall increase the personal n eeds 
allowance for residents of nursing homes and 
Intermediate Care Facilities for Individuals with 
Intellectual Disabilities intermediate care 
facilities for individuals with intellectual 
disabilities (ICFs/IID) from Fifty Dollars 
($50.00) per month to Se venty-five Dollars 
($75.00) per month per resident.  The increase 
shall be funded by Medicaid nur sing 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 facility 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 statewide 
toll-free, Senior-Info Line Senior Info-line for senior citizen 
services to include assistance with or information on long -term care 
services in this state.   
 
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4.  The Oklahoma Health Care Authority shall develop a nursing 
facility cost-reporting system that reflects the most current costs 
experienced by nursing and specialized facilities.  The Oklahoma 
Health Care Authority shall utilize the most current cost report 
data to estimate costs in determining daily per diem rates. 
5.  The Oklahoma Health Care Authority shall pro vide access to 
the detailed Medicaid payment audit adjustments and implement an 
appeal process for disputed payment audit adjustments to the 
provider.  Additionally, the Oklahoma Health Care Authority shall 
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 inclusion 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 Services for a waiver of   
 
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the uniform requirement on health -care-related taxes as permitted by 
Section 433.72 of 42 C.F.R., Section 433.72. 
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. 
SECTION 3.  This act shall become effective July 1, 2025. 
SECTION 4.  It being immediately necessary for the preservation 
of the public peace, health 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. 
COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS 
March 5, 2025 - DO PASS AS AMENDED BY CS