As you may recall, the Operating budget adopted by the legislature this past session included sufficient funding to rebase rates this coming July 1, 2020. The adopted budget had, however, overestimated the actual cost to rebase. Therefore, approximately $15 million in GF-S sits in the nursing home program budget but can not be spent unless legislative authority is granted. This enables the department, LeadingAge and WHCA to request the use of an inflation factor be applied to the underlying cost data without any added cost to the state, at least during this current biennium.  

 

While the money to rebase and apply an inflationary adjustment factor is in the 19/21 operating budget, we need to pass legislation to permanently move to an annual rebase schedule and inflate the cost report data.  Therefore, the department also plans to submit the necessary legislation to accomplish these payment system changes. This is a great first step predicated upon the department’s agreement that skilled nursing facilities are underfunded and that these proposed changes are necessary to stabilize this important care setting.  

 

Please watch for an upcoming action alert requesting that you contact the Governors office urging him to include the departments request in his 2020 Supplemental budget. You can expect this action alert email in the next couple of weeks. 

 

In addition to that proposed by DSHS, LeadingAge and WHCA will also advocate for an early rebasing effective March 1, 2020. The early rebasing will likely be done through a budget proviso and will carry an added cost, the amount of which is unknown at this time.  

 

I will continue to keep you updated when we know more. If you have any questions, please let me know.