Chapter 223

2009 -- S 0242 SUBSTITUTE A AS AMENDED

Enacted 11/09/09

 

A N A C T

RELATING TO HUMAN SERVICES -- MEDICAL ASSISTANCE--LONG-TERM CARE AND FINANCE REFORM

     

     Introduced By: Senators Perry, Miller, Sheehan, Crowley, and Sosnowski

     Date Introduced: February 11, 2009

 

It is enacted by the General Assembly as follows:

 

     SECTION 1. Sections 40-8.9-2, 40-8.9-4, 40-8.9-5, 40-8.9-6 and 40-8.9-9 of the General

Laws in Chapter 40-8.9 entitled "Medical Assistance - Long-Term Care Service and Finance

Reform" are hereby amended to read as follows:

 

     40-8.9-2. System reform goal System reform and rebalancing goal. -- On or before

July 1, 2007, the department of human services shall begin to implement a model system for

integrated long-term care, that expands the capacity of the long-term care system as a whole to

support consumer choice and independence; enables consumers to access coordinated services;

assures quality outcomes through certification standards, performance measures and incentives

and rewards that promote service excellence and generates the information consumers need to

make reasoned choices about their health care; and improves the system's overall stability by

reinvesting the benefits that accrue from the more efficient utilization of services to enhance the

capacity of each of its component parts. Attaining system-wide reform of the magnitude set forth

herein will require rebalancing the system by making significant changes in the organization,

financing and delivery of services that must be implemented incrementally.

 

     40-8.9-4. Unified long-term care budget. -- Beginning on July 1, 2007, a unified long-

term care budget shall combine in a single line-item appropriation within the department of

human services budget, annual department of human services Medicaid appropriations for

nursing facility and community-based long-term care services for elderly sixty-five (65) years and

older and younger persons at risk of nursing home admissions (including adult day care, home

health, pace, and personal care in assisted living settings). Beginning on July 1, 2007, the total

system savings attributable to the value of the reduction in nursing home days including hospice

nursing home days paid for by Medicaid shall be allocated in the budget enacted by the general

assembly for the ensuing fiscal year for the express purpose of promoting and strengthening

community-based alternatives. Beginning on January 1, 2008, the The allocation shall include,

but not be limited to, funds to support an on-going statewide community education and outreach

program to provide the public with information on home and community services and the

establishment of presumptive eligibility criteria for the purposes of accessing home and

community care. The home and community care service presumptive eligibility criteria shall be

developed through rule or regulation on or before September 30, 2007. The allocation may also

be used to fund home and community services provided by the department of elderly affairs for

persons eligible for Medicaid long-term care, and the co-pay program administered pursuant to

section 42-66.3. Any monies in the allocation that remain unexpended in a fiscal year shall be

carried forward to the next fiscal year for the express purpose of strengthening community-based

alternatives.

      The caseload estimating conference pursuant to section 35-17-1 shall determine the

amount of general revenues to be added to the current service estimate of community based long-

term care services for elderly sixty-five (65) and older and younger persons at risk of nursing

home admissions for the ensuing budget year by multiplying the combined cost per day of

nursing home and hospice nursing home days estimated at the caseload conference for that year

by the reduction in nursing home and hospice nursing home days from those in the second fiscal

year prior to the current fiscal year to those in the first fiscal year prior to the current fiscal year.

 

     40-8.9-5. Administration and regulations. -- The single state agency designated to

administer the Rhode Island Medicaid program is hereby directed and authorized to develop and

submit any requests for waivers, demonstration projects, grants and state plan amendments or

regulations that may be considered necessary and appropriate to support the general purposes and

specific requirements of this statute. Such requests shall be made in consultation with any

affected departments and, to the extent feasible, any consumer group, advisory body, or other

entity designated for such purposes.

 

     40-8.9-6. Reporting. -- Annual reports showing progress in long-term care system

reform and rebalancing shall be submitted by April 1st of each year the department to the Joint

Legislative Committee on Health Care Oversight as well as the finance committees of both the

senate and the house of representatives and shall include: the number of persons aged sixty-five

(65) years and over and adults with disabilities served in nursing facilities, the number of persons

transitioned from nursing homes to Medicaid supported home and community based care, the

number of persons aged sixty-five (65) years and over and adults with disabilities served in home

and community care to include home care, adult day services, assisted living and shared living,

the dollar amounts and percent of expenditures spent on nursing facility care and home and

community-based care, and estimates of the continued investments necessary to provide stability

to the existing system and establish the infrastructure and programs required to achieve system-

wide reform and the targeted goal of spending fifty percent (50%) of Medicaid long-term care

dollars on nursing facility care and fifty percent (50%) on home and community-based services.

 

     40-8.9-9. Long-term care re-balancing system reform goal. -- (a) Notwithstanding any

other provision of state law, the department of human services is authorized and directed to apply

for and obtain any necessary waiver(s), waiver amendment(s) and/or state plan amendments from

the secretary of the United States department of health and human services, and to promulgate

rules necessary to adopt an affirmative plan of program design and implementation that addresses

the goal of allocating a minimum of fifty percent (50%) of Medicaid long-term care funding to

home and community-based care on or before December 31, 2012 2013; provided, further, the

executive office of health and human services shall report annually as part of its budget

submission, the percentage distribution between institutional care and home community-based

care by population and shall report current and projected waiting lists for long-term care and

home and community-based care services. The department is further authorized and directed to

prioritize investments in home and community-based care and to maintain the integrity and

financial viability of all current long-term care services while pursuing this goal.

      (b) The reformed long-term care system re-balancing goal is person-centered and

encourages individual self-determination, family involvement, interagency collaboration, and

individual choice through the provision of highly specialized and individually tailored home-

based services. Additionally, individuals with severe behavioral, physical, or developmental

disabilities must have the opportunity to live safe and healthful lives through access to a wide

range of supportive services in an array of community-based settings, regardless of the

complexity of their medical condition, the severity of their disability, or the challenges of their

behavior. Delivery of services and supports in less costly and less restrictive community settings,

will enable children, adolescents and adults to be able to curtail, delay or avoid lengthy stays in

residential treatment facilities, juvenile detention centers, psychiatric facilities, and/or

intermediate care or skilled nursing facilities.

      (c) Pursuant to federal authority procured under section 42-7.2-16 of the general laws,

the department of human services is directed and authorized to adopt a tiered set of criteria to be

used to determine eligibility for long-term care services. Such criteria shall be developed in

collaboration with the state's health and human services departments and, to the extent feasible,

any consumer group, advisory board, or other entity designated for such purposes, and shall

encompass eligibility determinations for services in nursing facilities, hospitals, and intermediate

care facilities for the mentally retarded as well as home and community-based alternatives, and

shall provide a common standard of income eligibility for both institutional and home and

community-based care. The department is, subject to prior approval of the general assembly,

authorized to adopt criteria for admission to a nursing facility, hospital, or intermediate care

facility for the mentally retarded that are more stringent than those employed for access to home

and community-based services. The department is also authorized to promulgate rules that define

the frequency of re-assessments for services provided for under this section.

      (d) The department of human services is further authorized and directed to consolidate

all home and community-based services currently provided pursuant to section 1915(c) of title

XIX of the Untied States Code into a single program system of home and community-based

services that include options for consumer direction and shared living. The resulting single home

and community-based services program system shall replace and supersede all section 1915(c)

programs when fully implemented. Notwithstanding the foregoing, the resulting single program

home and community-based services program system shall include the continued funding of

assisted living services at any assisted living facility financed by the Rhode Island housing and

mortgage finance corporation prior to January 1, 2006, and shall be in accordance with chapter

66.8 of title 42 of the general laws as long as assisted living services are a covered Medicaid

benefit.

      (e) The department of human services is authorized to promulgate rules that permit

certain optional services including, but not limited to, homemaker services, home modifications,

respite, and physical therapy evaluations to be offered subject to availability of state-appropriated

funding for these purposes.

      (f) To promote the expansion of home and community-based service capacity, the

department of human services is authorized and directed to pursue rate reform for homemaker,

personal care (home health aide) and adult day care services, as follows:

      (1) A prospective base adjustment effective, not later than July 1, 2008, across all

departments and programs, of ten percent (10%) of the existing standard or average rate,

contingent upon a demonstrated increase in the state-funded or Medicaid caseload by June 30,

2009;

      (2) Development, not later than September 30, 2008, of certification standards

supporting and defining targeted rate increments to encourage service specialization and

scheduling accommodations including, but not limited to, medication and pain management,

wound management, certified Alzheimer's Syndrome treatment and support programs, and shift

differentials for night and week-end services; and

      (3) Development and submission to the governor and the general assembly, not later than

December 31, 2008, of a proposed rate-setting methodology for home and community-based

services to assure coverage of the base cost of service delivery as well as reasonable coverage of

changes in cost caused by wage inflation.

     (g) The department, in collaboration with the executive office of human services, shall

implement a long-term care options counseling program to provide individuals or their

representatives, or both, with long-term care consultations that shall include, at a minimum,

information about: long-term care options, sources and methods of both public and private

payment for long-term care services and an assessment of an individual’s functional capabilities

and opportunities for maximizing independence. Each individual admitted to or seeking

admission to a long-term care facility regardless of the payment source shall be informed by the

facility of the availability of the long-term care options counseling program and shall be provided

with long-term care options consultation if they so request. Each individual who applies for

Medicaid long-term care services shall be provided with a long-term care consultation.

      (h) The department of human services is also authorized, subject to availability of

appropriation of funding, to pay for certain non-Medicaid reimbursable expenses necessary to

transition residents back to the community; provided, however, payments shall not exceed an

annual or per person amount.

      (i) To assure the continued financial viability of nursing facilities, the department of

human services is authorized and directed to develop a proposal for revisions to section 40-8-19

that reflect the changes in cost and resident acuity that result from implementation of this re-

balancing goal. Said proposal shall be submitted to the governor and the general assembly on or

before January 1, 2010.

     (j) To ensure persons with long-term care needs who remain living at home have

adequate resources to deal with housing maintenance and unanticipated housing related costs, the

department of human services is authorized to develop higher resource eligibility limits for

persons on home and community waiver services who are living in their own homes or rental

units.

 

     SECTION 2. This act shall take effect upon passage.

     

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LC01087/SUB A

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