Chapter 757 Oregon Laws 2005

AN ACT

HB 2147

Relating to provider assessments; creating new provisions; amending sections 8, 9, 15, 16, 17, 18, 22, 23, 24, 31, 43, 44, 58 and 62, chapter 736, Oregon Laws 2003; repealing sections 26, 32 and 36, chapter 736, Oregon Laws 2003; prescribing an effective date; and providing for revenue raising that requires approval by a three-fifths majority.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 8, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 8. Amounts collected by the Department of Human Services from the assessments imposed under section 2, chapter 736, Oregon Laws 2003, [of this 2003 Act] shall be deposited in [a suspense account established under ORS 293.445. Amounts necessary to pay refunds are continuously appropriated to the department from the suspense account. After the payment of refunds, the net amount of revenue shall be transferred to] the Hospital Quality Assurance Fund established under section 9, chapter 736, Oregon Laws 2003[of this 2003 Act].

SECTION 2. Section 9, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 9. (1) The Hospital Quality Assurance Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Hospital Quality Assurance Fund shall be credited to the Hospital Quality Assurance Fund.

(2) Amounts in the Hospital Quality Assurance Fund are continuously appropriated to the Department of Human Services for the purpose of paying refunds due under section 6, chapter 736, Oregon Laws 2003, and funding health services under ORS 414.705 to 414.750, including but not limited to:

(a) Increasing reimbursement rates for inpatient and outpatient hospital services under ORS 414.705 to 414.750;

(b) Expanding, continuing or modifying hospital services for persons 19 years of age or older with incomes below 100 percent of the federal poverty guidelines who do not have federal Medicare coverage under ORS 414.705 to 414.750; and

(c) Paying administrative costs incurred by the department to administer the assessments imposed under section 2, chapter 736, Oregon Laws 2003 [of this 2003 Act].

SECTION 3. Section 15, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 15. As used in sections 15 to 22, chapter 736, Oregon Laws 2003 [of this 2003 Act]:

(1) “Assessment rate” means the rate established by the Director of Human Services under section 17, chapter 736, Oregon Laws 2003 [of this 2003 Act].

(2) “Gross revenue”:

(a) Means the revenue paid to a long term care facility for patient care, room, board and services, less contractual adjustments; and

(b) Does not include revenue derived from sources other than operations, including but not limited to interest and guest meals.

(3) “Long term care facility” has the meaning given that term in ORS 442.015, but does not include an intermediate care facility for the mentally retarded.

(4) “Patient days” means the total number of patients occupying beds in a long term care facility, determined as of [12:01 a.m.] 11:59 p.m. of each day, for all days in the calendar period for which an assessment is being reported and paid. For purposes of this subsection, if a long term care facility patient is admitted and discharged on the same day, the patient shall be deemed present on [12:01 a.m.] 11:59 p.m. of that day.

(5) “Waivered long term care facility” means:

(a) A long term care facility operated by a continuing care retirement community that is registered under ORS 101.030 and that admits:

(A) Residents of the continuing care retirement community; or

(B) Residents of the continuing care retirement community and nonresidents; or

(b) A long term care facility that is annually identified by the Department of Human Services as having a Medicaid recipient census that exceeds the census level established by the department.

SECTION 3a. The amendments to sections 15 and 18, chapter 736, Oregon Laws 2003, by sections 3 and 7 of this 2005 Act, apply to assessment periods beginning on or after July 1, 2005.

SECTION 3b. The Department of Human Services shall refund any amounts collected under sections 15 to 22, chapter 736, Oregon Laws 2003, on or after June 1, 2005, and prior to the effective date of this 2005 Act from a waivered long term care facility.

SECTION 3c. The Department of Human Services is not required to refund any amounts collected under sections 15 to 22, chapter 736, Oregon Laws 2003, prior to June 1, 2005, from a waivered long term care facility.

SECTION 4. Section 16, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 16. (1) A long term care facility assessment is imposed on each long term care facility in this state.

(2) The amount of the assessment equals the assessment rate times the number of patient days at the long term care facility for a calendar quarter.

(3) The assessment shall be reported on a form prescribed by the Department of Human Services and shall contain the information required to be reported by the department. The assessment form shall be filed with the department on or before the 30th day of the month following the end of the calendar quarter for which the assessment is being reported. The long term care facility shall pay the assessment at the time the facility files the assessment report. The payment shall accompany the report unless the payment is transmitted electronically.

(4) A long term care facility is not guaranteed that any additional moneys paid to the facility in the form of reimbursements calculated according to the methodology described in section 24 (4), chapter 736, Oregon Laws 2003, [of this 2003 Act] shall equal or exceed the amount of the long term care facility assessment paid by the facility.

SECTION 5. Section 17, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 17. [(1) The Director of Human Services shall establish an annual assessment rate for long term care facilities that applies for a the 12-month period beginning July 1 of that year. The assessment rate shall be a rate that will raise an amount equal to six percent of the annual gross revenue of all long term care facilities in this state excluding the annual gross revenue of long term care facilities that are exempt from the assessment under section 16 of this 2003 Act, for the 12-month period beginning July 1 preceding the 12-month period for which the assessment is being imposed.]

[(2) At the time the annual assessment rate is established, the director may adjust the assessment rate determined under subsection (1) of this section to account for overages and underages in the aggregate amount actually collected during previous assessment periods.]

[(3) The director shall establish the assessment rate on or before June 15th preceding the 12-month period for which the rate applies.]

(1) On or before June 15 of each year, the Director of Human Services shall establish an assessment rate for long term care facilities that applies prospectively to the 12-month period beginning July 1 of that year. The assessment rate shall be a rate estimated to collect an amount that does not exceed six percent of the annual gross revenue of all long term care facilities in this state, as determined from the previous year’s cost reports or other required revenue reports, excluding the annual gross revenue of long term care facilities that are exempt from the assessment imposed under section 16, chapter 736, Oregon Laws 2003.

(2) On or before June 15 of each year, the Department of Human Services shall refund any overage in tax dollars collected under section 16, chapter 736, Oregon Laws 2003, that exceeds the maximum percentage of the projected annual gross revenue of all long term care facilities in this state as described in subsection (1) of this section. The department shall refund any overage described in this subsection by crediting the percentage of the overage attributable to each long term care facility subject to the assessment described in section 16, chapter 736, Oregon Laws 2003, against taxes owed by that facility in succeeding assessment periods. The department may collect any delinquent assessments, but may not collect any underages in actual collections through an adjustment in assessment rates.

SECTION 6. Notwithstanding the amendments to section 17, chapter 736, Oregon Laws 2003, by section 5 of this 2005 Act, the Director of Human Services may adjust the assessment rate established under section 17, chapter 736, Oregon Laws 2003, for the assessment period beginning July 1, 2004, and ending June 30, 2005, to collect for any underages attributable to that assessment period. The adjusted assessment rate shall be imposed on patient days occurring in the assessment period beginning July 1, 2004, and ending June 30, 2005. The additional assessment imposed under this section shall be paid on or before December 31, 2005. The director may not adjust the assessment rate to collect any underages attributable to any assessment period beginning earlier than July 1, 2004. Any underages collected prior to the effective date of this 2005 Act for any assessment period beginning earlier than July 1, 2004, shall be refunded.

SECTION 7. Section 18, chapter 736, Oregon Laws 2003, as amended by section 34, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 18. (1) The Oregon Veterans’ Home is exempt from the assessment imposed under section 16, chapter 736, Oregon Laws 2003[of this 2003 Act].

(2) A waivered long term care facility[, as defined in section 33 of this 2003 Act,] is exempt from the long term care facility assessment imposed under section 16, chapter 736, Oregon Laws 2003 [of this 2003 Act].

SECTION 8. Section 23, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 23. Sections 15 to 22 [of this 2003 Act], chapter 736, Oregon Laws 2003, apply to long term care facility assessments imposed in calendar quarters beginning on or after [the effective date of this 2003 Act] November 26, 2003, and before July 1, [2007] 2008.

SECTION 9. Section 31, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 31. Sections 15 to 22 and 24 [of this 2003 Act], section 736, Oregon Laws 2003, are repealed on January 2, [2008] 2009.

SECTION 10. Section 22, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 22. Amounts collected by the Department of Human Services from the assessment under section 16, chapter 736, Oregon Laws 2003 [of this 2003 Act] shall be deposited in [a suspense account established under ORS 293.445. Amounts necessary to pay refunds are continuously appropriated to the department from the suspense account. After the payment of refunds, the net amount of revenue shall be transferred to] the Long Term Care Facility Quality Assurance Fund established under section 24, chapter 736, Oregon Laws 2003 [of this 2003 Act].

SECTION 11. Section 24, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 24. (1) The Long Term Care Facility Quality Assurance Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Long Term Care Facility Quality Assurance Fund shall be credited to the fund.

(2) Amounts in the Long Term Care Facility Quality Assurance Fund are continuously appropriated to the Department of Human Services for the purposes of paying refunds due under section 20, chapter 736, Oregon Laws 2003, and funding long term care facilities, as defined in section 15, chapter 736, Oregon Laws 2003 [of this 2003 Act], that are a part of the Oregon Medicaid reimbursement system.

(3) Funds in the Long Term Care Facility Quality Assurance Fund and the matching federal financial participation under Title XIX of the Social Security Act may be used to fund Medicaid-certified long term care facilities using only the reimbursement methodology described in subsection (4) of this section to achieve a rate of reimbursement greater than the rate in effect on [July 1] June 30, 2003.

(4) The reimbursement methodology used to make additional payments to Medicaid-certified long term care facilities includes but is not limited to:

(a) Rebasing biennially, beginning on July 1 of each odd-numbered year;

(b) Adjusting for inflation in the nonrebasing year;

(d) Continuing the use of the complex medical needs additional payment;

(e) Discontinuing the use of the relationship percentage, except when calculating the pediatric rate in paragraph (c) of this subsection; and

(f) Requiring the Department of Human Services to reimburse costs at a rate not lower than the [63rd percentile ceiling of allowable costs for the 2003-2005 biennium and the] 70th percentile ceiling of allowable costs for the 2005-2007 biennium.

SECTION 12. Section 43, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 43. Amounts collected by the Department of Human Services from the assessments under section 38, chapter 736, Oregon Laws 2003 [of this 2003 Act] shall be deposited in [a suspense account established under ORS 293.445. Amounts necessary to pay refunds are continuously appropriated to the department from the suspense account. After the payment of refunds, the net amount of revenue shall be transferred to] the Medical Care Quality Assurance Fund established under section 44, chapter 736, Oregon Laws 2003 [of this 2003 Act].

SECTION 13. Section 44, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 44. (1) The Medical Care Quality Assurance Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the Medical Care Quality Assurance Fund shall be credited to the Medical Care Quality Assurance Fund.

(2) Amounts in the Medical Care Quality Assurance Fund are continuously appropriated to the Department of Human Services for the purpose of paying refunds due under section 41, chapter 736, Oregon Laws 2003, and funding the state medical assistance program, including but not limited to health services provided by prepaid managed care health services organizations.

SECTION 14. Section 58, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 58. Amounts collected by the Department of Human Services from the assessment under section 53, chapter 736, Oregon Laws 2003, [of this 2003 Act] shall be deposited in [a suspense account established under ORS 293.445. Amounts necessary to pay refunds are continuously appropriated to the department from the suspense account. After the payment of refunds, the net amount of revenue shall be transferred to] the PACE Quality Assurance Fund established under section 62, chapter 736, Oregon Laws 2003 [of this 2003 Act].

SECTION 15. Section 62, chapter 736, Oregon Laws 2003, is amended to read:

Sec. 62. (1) The PACE Quality Assurance Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned by the PACE Quality Assurance Fund shall be credited to the PACE Quality Assurance Fund.

(2) Amounts in the PACE Quality Assurance Fund are continuously appropriated to the Department of Human Services for the purpose of paying refunds due under section 56, chapter 736, Oregon Laws 2003, and funding programs of all-inclusive care for elderly persons, as defined in section 52, chapter 736, Oregon Laws 2003 [of this 2003 Act], that are a part of the Oregon Medicaid reimbursement system.

SECTION 16. Sections 26, 32 and 36, chapter 736, Oregon Laws 2003, are repealed.

SECTION 17. This 2005 Act takes effect on the 91st day after the date on which the regular session of the Seventy-third Legislative Assembly adjourns sine die.

Approved by the Governor August 23, 2005

Filed in the office of Secretary of State August 23, 2005

Effective date November 4, 2005

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