74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 724
House Bill 2178
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore R.
Kulongoski for Department of Human Services)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Requires Department of Human Services to adopt rules
establishing methodology for payments to long term care
facilities from Long Term Care Facility Quality Assurance Fund.
Extends sunset to January 2, 2011.
A BILL FOR AN ACT
Relating to long term care facility assessments; creating new
provisions; amending sections 15, 16, 18, 23, 24, 29, 30 and
31, chapter 736, Oregon Laws 2003; 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 15, chapter 736, Oregon Laws 2003, as
amended by section 3, chapter 757, Oregon Laws 2005, is amended
to read:
{ + Sec. 15. + } As used in sections 15 to 22, chapter 736,
Oregon Laws 2003:
(1) 'Assessment rate' means the rate established by the
Director of Human Services under section 17, chapter 736, Oregon
Laws 2003.
{ + (2) 'Continuing care retirement community' means a long
term care facility that is registered under ORS 101.030. + }
{ - (2) - } { + (3) + } '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) - } { + (4) + } '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) - } { + (5) + } 'Patient days' means the total
number of patients occupying beds in a long term care facility,
determined as of 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 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 2. Section 18, chapter 736, Oregon Laws 2003, as
amended by section 34, chapter 736, Oregon Laws 2003, and section
7, chapter 757, Oregon Laws 2005, 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.
{ - (2) A waivered long term care facility is exempt from the
long term care facility assessment imposed under section 16,
chapter 736, Oregon Laws 2003. - }
{ + (2) A continuing care retirement community is exempt from
the long term care facility assessment imposed under section 16,
chapter 736, Oregon Laws 2003, for the portion of annual gross
revenue attributable to residents of the continuing care
retirement community.
(3) 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 is exempt from the long term care facility assessment
imposed under section 16, chapter 736, Oregon Laws 2003, for the
year for which the facility is identified. + }
SECTION 3. Section 23, chapter 736, Oregon Laws 2003, as
amended by section 8, chapter 757, Oregon Laws 2005, is amended
to read:
{ + Sec. 23. + } Sections 15 to 22, chapter 736, Oregon Laws
2003, apply to long term care facility assessments imposed in
calendar quarters beginning on or after November 26, 2003, and
before July 1, { - 2008 - } { + 2010 + }.
SECTION 4. Section 24, chapter 736, Oregon Laws 2003, as
amended by section 11, chapter 757, Oregon Laws 2005, 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, that are a part of the Oregon Medicaid reimbursement system
{ - . - } { + , including but not limited to:
(a) Increasing reimbursement rates for basic and complex
skilled nursing facility services; and
(b) Paying costs incurred by the department to administer the
assessments imposed under section 16, chapter 736, Oregon Laws
2003.
(3) The department may not retain more than two percent of the
funds collected annually under section 16, chapter 736, Oregon
Laws 2003, for paying administrative costs under subsection (2)
of this section. + }
{ - (3) - } { + (4) + } { - Funds in - } { + Only funds
from + } 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 { + increase above June
30, 2003, levels the rate of reimbursement paid to
Medicaid-certified long term care facilities using the
reimbursement methodology described in subsection (5) of this
section. + } { - 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 June 30, 2003. - }
{ - (4) - } { + (5) + } { - The reimbursement methodology
used to make additional payments to Medicaid-certified long term
care facilities - } { + The department shall adopt by rule, in
accordance with the provisions of ORS chapter 183, a
reimbursement methodology for payments under subsection (4) of
this section that is consistent with ORS 410.851 and that + }
includes but is not limited to:
(a) Rebasing biennially, beginning on July 1 of each
odd-numbered year; { + and + }
(b) Adjusting for inflation in the nonrebasing year { - ; - }
{ + . + }
{ - (c) Continuing the use of the pediatric rate; - }
{ - (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 70th percentile
ceiling of allowable costs for the 2005-2007 biennium. - }
SECTION 5. Section 16, chapter 736, Oregon Laws 2003, as
amended by section 4, chapter 757, Oregon Laws 2005, 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) - } { + (5) + }, chapter 736, Oregon
Laws 2003, shall equal or exceed the amount of the long term care
facility assessment paid by the facility.
SECTION 6. Section 29, chapter 736, Oregon Laws 2003, is
amended to read:
{ + Sec. 29. + } Notwithstanding sections 15 to 22 { + ,
chapter 736, Oregon Laws 2003 + } { - of this 2003 Act - } , an
assessment under sections 15 to 22 { + , chapter 736, Oregon Laws
2003, + } { - of this 2003 Act - } may be imposed only in a
calendar quarter for which the long term care facility
reimbursement rate that is part of the Oregon Medicaid
reimbursement system was calculated according to the methodology
described in section 24 { - (4) - } { + (5), chapter 736,
Oregon Laws 2003 + }
{ - of this 2003 Act - } . The department may make retroactive
increases in payments for the first six months the assessment is
imposed.
SECTION 7. Section 30, chapter 736, Oregon Laws 2003, is
amended to read:
{ + Sec. 30. + } Notwithstanding ORS 410.555 and section
28 { + , chapter 736, Oregon Laws 2003 + } { - of this 2003
Act - } , an assessment under section 28 { + , chapter 736,
Oregon Laws 2003, + } { - of this 2003 Act - } may be imposed
only in a calendar quarter for which the long term care facility
reimbursement rate that is part of the Oregon Medicaid
reimbursement system was calculated according to the methodology
described in section 24 { - (4) - } { + (5), chapter 736,
Oregon Laws 2003 + }
{ - of this 2003 Act - } .
SECTION 8. { + Nothing in the repeal of sections 15 to 22 and
24, chapter 736, Oregon Laws 2003, by section 31, chapter 736,
Oregon Laws 2003, affects the imposition and collection of a long
term care facility assessment under sections 15 to 22 and 24,
chapter 736, Oregon Laws 2003, for a calendar quarter beginning
before July 1, 2010. + }
SECTION 9. Section 31, chapter 736, Oregon Laws 2003, as
amended by section 9, chapter 757, Oregon Laws 2005, is amended
to read:
{ + Sec. 31. + } { + (1) + } Sections { - 15 to 22 and 24,
section - } { + 19, 20 and 21, chapter + } 736, Oregon Laws
2003, are repealed on January 2,
{ - 2009 - } { + 2011 + }.
{ + (2) Section 15, chapter 736, Oregon Laws 2003, as amended
by section 3, chapter 757, Oregon Laws 2005, and section 1 of
this 2007 Act is repealed January 2, 2011.
(3) Section 16, chapter 736, Oregon Laws 2003, as amended by
section 4, chapter 757, Oregon Laws 2005, and section 5 of this
2007 Act is repealed January 2, 2011.
(4) Section 17, chapter 736, Oregon Laws 2003, as amended by
section 5, chapter 757, Oregon Laws 2005, is repealed January 2,
2011.
(5) Section 18, chapter 736, Oregon Laws 2003, as amended by
section 34, chapter 736, Oregon Laws 2003, section 7, chapter
757, Oregon Laws 2005, and section 2 of this 2007 Act is repealed
January 2, 2011.
(6) Section 22, chapter 736, Oregon Laws 2003, as amended by
section 10, chapter 757, Oregon Laws 2005, is repealed January 2,
2011.
(7) Section 24, chapter 736, Oregon Laws 2003, as amended by
section 11, chapter 757, Oregon Laws 2005, and section 4 of this
2007 Act is repealed January 2, 2011. + }
SECTION 10. { + The amendments to section 24, chapter 736,
Oregon Laws 2003, by section 4 of this 2007 Act apply to the
reimbursement methodology used to calculate payments for services
received on or after July 1, 2007. + }
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