Bill Text: IA SSB3126 | 2017-2018 | 87th General Assembly | Introduced


Bill Title: A bill for an act relating to reimbursement for dually eligible Medicare and Medicaid beneficiaries receiving the Medicare hospice benefit in a nursing facility.

Spectrum: Committee Bill

Status: (N/A - Dead) 2018-02-07 - Subcommittee recommends passage. [SSB3126 Detail]

Download: Iowa-2017-SSB3126-Introduced.html
Senate Study Bill 3126 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON HUMAN RESOURCES BILL BY CHAIRPERSON SEGEBART) A BILL FOR An Act relating to reimbursement for dually eligible Medicare 1 and Medicaid beneficiaries receiving the Medicare hospice 2 benefit in a nursing facility. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 6007XC (4) 87 pf/rn
S.F. _____ Section 1. DUALLY ELIGIBLE MEDICARE AND MEDICAID 1 BENEFICIARIES RECEIVING HOSPICE BENEFIT IN A NURSING FACILITY 2 —— OPTIONS FOR ELIMINATION OF PASS-THROUGH PAYMENT. The 3 department of human services shall pursue options for the 4 payment of the nursing facility room and board expenses for 5 a dually eligible Medicare and Medicaid member receiving the 6 Medicare hospice benefit, to allow Medicaid managed care 7 organizations to reimburse the nursing facility directly 8 for the room and board expenses rather than indirectly as 9 a pass-through payment from the hospice services provider. 10 The department of human services shall report all options 11 identified to the chairpersons and ranking members of the joint 12 appropriations subcommittee on health and human services, the 13 legislative services agency, and the legislative caucus staffs 14 on or before October 1, 2018. 15 EXPLANATION 16 The inclusion of this explanation does not constitute agreement with 17 the explanation’s substance by the members of the general assembly. 18 This bill requires the department of human services (DHS) 19 to pursue options for the payment of the nursing facility room 20 and board expenses for a dually eligible Medicare and Medicaid 21 member receiving the Medicare hospice benefit, to allow 22 Medicaid managed care organizations to reimburse the nursing 23 facility directly for the room and board expenses rather 24 than indirectly as a pass-through payment from the hospice 25 services provider. DHS is required to report all options 26 identified to the chairpersons and ranking members of the joint 27 appropriations subcommittee on health and human services, the 28 legislative services agency, and the legislative caucus staffs 29 on or before October 1, 2018. 30 Currently, the Medicare hospice benefit covers the costs of 31 palliative care for an individual who is terminally ill in the 32 individual’s home or in a nursing facility. Medicare does not 33 have a long-term custodial nursing facility benefit, so that if 34 an individual elects the Medicare hospice benefit in a nursing 35 -1- LSB 6007XC (4) 87 pf/rn 1/ 2
S.F. _____ facility, the individual’s room and board are not covered by 1 Medicare and the individual or a third-party payor must pay for 2 the costs of the room and board. For those individuals dually 3 eligible for Medicare and Medicaid who elect the Medicare 4 hospice benefit, Medicare is financially responsible for the 5 hospice care and the Medicaid program is the third-party payor 6 responsible for the nursing facility room and board expense. 7 For the nursing facility room and board care, the Medicaid 8 program must provide for payment in an amount equal to at 9 least 95 percent of the Medicaid daily nursing facility rate 10 (the rate the state Medicaid program pays for nursing facility 11 services furnished to an individual who has not elected to 12 receive hospice care). Historically, the Medicaid program 13 has paid the hospice provider for the nursing facility room 14 and board expenses of dually eligible individuals who elect 15 the hospice benefit, and the hospice provider has then passed 16 through this payment to the nursing facility. The bill would 17 require DHS to pursue options to instead allow Medicaid managed 18 care organizations to pay the nursing facility directly for 19 the nursing facility room and board costs, and eliminate the 20 pass-through payment utilizing the hospice provider. 21 -2- LSB 6007XC (4) 87 pf/rn 2/ 2
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