Texas Senate Bill SB1130

Texas 2017 - 85th Regular

Caption

Relating to the creation and administration of a reinvestment allowance for certain long-term care facilities.

Impact

The implementation of SB1130 entails significant adjustments to Chapter 242 of the Health and Safety Code, particularly concerning how the revenue from the allowance would be managed. Notably, a trust fund will be established that is specifically designated for the reinvestment allowance. The funds collected will serve not only to reimburse the federal share of the reinvestment allowance but also to increase overall reimbursement rates for Medicaid services delivered by the facilities. This measure aims to ensure that the financing for long-term care is sustainable and reflective of the service needs.

Summary

SB1130 proposes a creation and administration of a reinvestment allowance aimed at certain long-term care facilities in Texas. The bill introduces a framework under which these facilities would be subjected to a calculated reinvestment allowance based on their non-Medicare patient days. As part of this initiative, the Health and Human Services Commission (HHSC) is tasked with the responsibility of enforcing the collection of this allowance, which will be used to increase funding for long-term care services and enhance the quality of healthcare provided to residents in these facilities.

Contention

Despite its intentions, the bill has raised concerns regarding its potential dependency on federal approval for implementing the Medicaid-related funding. It also establishes strict guidelines for the implementation of the allowance, with provisions that stipulate that collections must not begin until certain federal conditions are met. Opposition may arise from stakeholders worried about the implications of potential delays in the approval process from federal agencies and how that could affect the financial viability of long-term care facilities.

Additional_notes

The proposed changes included in SB1130 are set against the backdrop of ongoing discussions about the adequacy of funding for long-term care, particularly in light of the increasing elderly population. While supporters argue that this bill can lead to improved healthcare outcomes through better funding mechanisms, critics might view it as another layer of regulation that could complicate existing reimbursement processes.