HOUSE BILL 267

51st legislature - STATE OF NEW MEXICO - second session, 2014

INTRODUCED BY

Luciano "Lucky" Varela

AN ACT

RELATING TO PUBLIC ASSISTANCE; ENACTING A NEW SECTION OF THE PUBLIC ASSISTANCE ACT TO REQUIRE THE HUMAN SERVICES DEPARTMENT TO CREATE AND IMPLEMENT A NEW REIMBURSEMENT SYSTEM FOR MEDICAID NURSING FACILITY CARE AND SERVICES; MAKING APPROPRIATIONS.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. A new section of the Public Assistance Act is enacted to read:

     "[NEW MATERIAL] MEDICAID NURSING FACILITIES--REIMBURSEMENT SYSTEM.--

          A. By July 1, 2015, the department shall create and implement a new reimbursement system for nursing facility care and services delivered to medicaid recipients. The reimbursement system shall provide for reimbursement rates based on:

                (1) the cost of meeting the current acuity of need for nursing facility care and services among medicaid recipients, as determined by a medicaid cost reporting audit; and

                (2) the current market basket index published by the federal centers for medicare and medicaid services.

          B. At least once each fiscal year, the department shall implement a reimbursement rate increase for care and services delivered to medicaid recipients in accordance with the reimbursement system devised pursuant to Subsection A of this section.

          C. As used in this section, "medicaid cost reporting audit" means a review conducted by a person that, in the regular course of business, conducts reviews of itemized allowable nursing facility financial and statistical cost reporting that nursing facilities that provide care and services to medicaid recipients submit annually pursuant to department rules."

     SECTION 2. APPROPRIATION.--

          A. Eight million dollars ($8,000,000) is appropriated from the general fund to the human services department for expenditure in fiscal year 2015 to fund reimbursement rate increases for medicaid nursing facilities. Any unexpended or unencumbered balance remaining at the end of fiscal year 2015 shall revert to the general fund.

          B. Five hundred thousand dollars ($500,000) is appropriated from the general fund to the human services department for expenditure in fiscal year 2015 and subsequent fiscal years to fund the establishment of a new medicaid nursing facility reimbursement system pursuant to Section 1 of this 2014 act. Any unexpended or unencumbered balance remaining at the end of a fiscal year shall not revert to the general fund.

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