Bill Text: IL HB1422 | 2021-2022 | 102nd General Assembly | Introduced

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Bill Title: Amends the Illinois Public Aid Code. Makes a technical change in a Section concerning Medicaid payment rates for nursing facility and ICF/DD services in nursing facilities.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2021-04-23 - Rule 19(a) / Re-referred to Rules Committee [HB1422 Detail]

Download: Illinois-2021-HB1422-Introduced.html

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102ND GENERAL ASSEMBLY State of Illinois 2021 and 2022 HB1422 Introduced , by Rep. Emanuel Chris Welch SYNOPSIS AS INTRODUCED:
305 ILCS 5/5-5.5 from Ch. 23, par. 5-5.5
Amends the Illinois Public Aid Code. Makes a technical change in a Section concerning Medicaid payment rates for nursing facility and ICF/DD services in nursing facilities.
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A BILL FOR
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AN ACT concerning public aid.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Illinois Public Aid Code is amended by
changing Section 5-5.5 as follows:
(305 ILCS 5/5-5.5) (from Ch. 23, par. 5-5.5)
Sec. 5-5.5. Elements of Payment Rate.
(a) The The Department of Healthcare and Family Services
shall develop a prospective method for determining payment
rates for nursing facility and ICF/DD services in nursing
facilities composed of the following cost elements:
(1) Standard Services, with the cost of this component
being determined by taking into account the actual costs
to the facilities of these services subject to cost
ceilings to be defined in the Department's rules.
(2) Resident Services, with the cost of this component
being determined by taking into account the actual costs,
needs and utilization of these services, as derived from
an assessment of the resident needs in the nursing
facilities.
(3) Ancillary Services, with the payment rate being
developed for each individual type of service. Payment
shall be made only when authorized under procedures

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developed by the Department of Healthcare and Family
Services.
(4) Nurse's Aide Training, with the cost of this
component being determined by taking into account the
actual cost to the facilities of such training.
(5) Real Estate Taxes, with the cost of this component
being determined by taking into account the figures
contained in the most currently available cost reports
(with no imposition of maximums) updated to the midpoint
of the current rate year for long term care services
rendered between July 1, 1984 and June 30, 1985, and with
the cost of this component being determined by taking into
account the actual 1983 taxes for which the nursing homes
were assessed (with no imposition of maximums) updated to
the midpoint of the current rate year for long term care
services rendered between July 1, 1985 and June 30, 1986.
(b) In developing a prospective method for determining
payment rates for nursing facility and ICF/DD services in
nursing facilities and ICF/DDs, the Department of Healthcare
and Family Services shall consider the following cost
elements:
(1) Reasonable capital cost determined by utilizing
incurred interest rate and the current value of the
investment, including land, utilizing composite rates, or
by utilizing such other reasonable cost related methods
determined by the Department. However, beginning with the

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rate reimbursement period effective July 1, 1987, the
Department shall be prohibited from establishing,
including, and implementing any depreciation factor in
calculating the capital cost element.
(2) Profit, with the actual amount being produced and
accruing to the providers in the form of a return on their
total investment, on the basis of their ability to
economically and efficiently deliver a type of service.
The method of payment may assure the opportunity for a
profit, but shall not guarantee or establish a specific
amount as a cost.
(c) The Illinois Department may implement the amendatory
changes to this Section made by this amendatory Act of 1991
through the use of emergency rules in accordance with the
provisions of Section 5.02 of the Illinois Administrative
Procedure Act. For purposes of the Illinois Administrative
Procedure Act, the adoption of rules to implement the
amendatory changes to this Section made by this amendatory Act
of 1991 shall be deemed an emergency and necessary for the
public interest, safety and welfare.
(d) No later than January 1, 2001, the Department of
Public Aid shall file with the Joint Committee on
Administrative Rules, pursuant to the Illinois Administrative
Procedure Act, a proposed rule, or a proposed amendment to an
existing rule, regarding payment for appropriate services,
including assessment, care planning, discharge planning, and

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treatment provided by nursing facilities to residents who have
a serious mental illness.
(e) On and after July 1, 2012, the Department shall reduce
any rate of reimbursement for services or other payments or
alter any methodologies authorized by this Code to reduce any
rate of reimbursement for services or other payments in
accordance with Section 5-5e.
(Source: P.A. 96-1123, eff. 1-1-11; 96-1530, eff. 2-16-11;
97-689, eff. 6-14-12.)