Committee adopts amendment directing DHHS study of basic care payment system for dementia services

The Appropriations — Human Resources Division adopted an amendment to Senate Bill 2,271 that directs the Department of Health and Human Services to study the state’s Basic Care payment system, with particular attention to reimbursement for property costs, operating margin methodology, annual inflationary adjustments and rate determination for specialized services for people with dementia or head injury.

Representative Mitscog offered the amendment, reading language that states in part: “The Department of Health and Human Services shall study the Basic Care payment system in collaboration with Basic Care providers and the association representing them.” Representative Murphy seconded the amendment. Committee members said the study would aim to address longstanding concerns about reimbursement lag and rate adequacy for basic care facilities.

Representative Murphy asked whether the amendment should address the funding lag—how facilities experience a delay between when a rate increase takes effect and when they receive higher payments. Members discussed that the study could look at that gap as part of the rate-setting and inflation methodologies. Representative Mitscog and staff said the study would be completed during the next biennium, with a report to an interim legislative committee.

On a roll call the amendment passed, 8-0. Representative Mitscog then moved to recommend the amended Senate Bill 2,271 to the full appropriations committee; Representative Murphy seconded. On a subsequent roll call the committee recommended the bill as amended (vote recorded in committee: 7-1). Committee discussion requested departmental follow-up about lag timing, potential retroactive payment issues and whether an independent inflation index should be used for basic care adjustments.

Votes at a glance: - Amendment to Senate Bill 2,271 (study of Basic Care payment system): mover Representative Mitscog; second Representative Murphy; outcome: approved, 8-0. - Motion to recommend amended Senate Bill 2,271 to full appropriations: mover Representative Mitscog; second Representative Murphy; outcome: approved, 7-1.

Committee members said they expected the department to collaborate with Basic Care providers and the Long Term Care Association on methodology and to return findings to the interim legislative committee during the next biennium.