PRINTER'S NO. 913

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 840 Session of 1993


        INTRODUCED BY BELAN, SCANLON AND BODACK, MARCH 30, 1993

        REFERRED TO PUBLIC HEALTH AND WELFARE, MARCH 30, 1993

                                     AN ACT

     1  Amending the act of June 13, 1967 (P.L.31, No.21), entitled "An
     2     act to consolidate, editorially revise, and codify the public
     3     welfare laws of the Commonwealth," further providing for
     4     medical assistance payments made in behalf of eligible
     5     persons receiving institutional care in skilled nursing and
     6     intermediate care facilities.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 443.1 of the act of June 13, 1967
    10  (P.L.31, No.21), known as the Public Welfare Code, amended July
    11  15, 1976 (P.L.993, No.202), is amended to read:
    12     Section 443.1.  Medical Assistance Payments for Institutional
    13  Care.--The following medical assistance payments shall be made
    14  in behalf of eligible persons whose institutional care is
    15  prescribed by physicians:
    16     (1)  The reasonable cost of inpatient hospital care, as
    17  specified by regulations of the department adopted under Title
    18  XIX of the Federal Social Security Act and certified to the
    19  department by the Auditor General for a bed patient on a


     1  continuous twenty-four hour a day basis in a multi bed
     2  accommodation of a hospital, exclusive of a hospital or distinct
     3  part of a hospital wherein twenty-five percent of patients
     4  remain six months or more. To be eligible for such payments a
     5  hospital must be qualified to participate under Title XIX of the
     6  Federal Social Security Act and have entered into a written
     7  agreement with the department regarding matters designated by
     8  the secretary as necessary to efficient administration, such as
     9  hospital utilization, maintenance of proper cost accounting
    10  records and access to patients' records. Such efficient
    11  administration shall require the department to permit
    12  participating hospitals to utilize the same fiscal intermediary
    13  for this Title XIX program as such hospitals use for the Title
    14  XVIII program;
    15     (2)  The cost of skilled nursing and intermediate nursing
    16  care in State-owned geriatric centers, institutions for the
    17  mentally retarded, institutions for the mentally ill, and in
    18  county homes which meet the State and Federal requirements for
    19  participation under Title XIX of the Federal Social Security Act
    20  and which are approved by the department. This cost in county
    21  homes shall be as specified by the regulations of the department
    22  adopted under Title XIX of the Federal Social Security Act and
    23  certified to the department by the Auditor General; elsewhere
    24  the cost shall be determined by the department;
    25     (3)  Rates on a cost-related basis established by the
    26  department for skilled nursing home or intermediate care in a
    27  non-public nursing home, when furnished by a nursing home
    28  licensed or approved by the department and qualified to
    29  participate under Title XIX of the Federal Social Security Act;
    30     (4)  The cost of care in any mental hospital or in a public
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     1  tuberculosis hospital. To be eligible for such payments a
     2  hospital must be qualified to participate under Title XIX of the
     3  Federal Social Security Act and have entered into a written
     4  agreement with the department regarding matters designated by
     5  the secretary as necessary to efficient administration, such as
     6  hospital utilization, maintenance of proper cost accounting
     7  records and access to patients' records. Care in a private
     8  mental hospital shall be limited to sixty days in a benefit
     9  period. Only persons aged twenty-one years or under and aged
    10  sixty-five years or older shall be eligible for care in a public
    11  mental or tuberculosis hospital. This cost shall be the
    12  reasonable cost, as determined by the department for a State
    13  institution or as specified by regulations of the department
    14  adopted under Title XIX of the Federal Social Security Act and
    15  certified to the department by the Auditor General for county
    16  and non-public institutions[.];
    17     (5)  In determining the cost of skilled nursing and
    18  intermediate care for facilities identified in clauses (2) and
    19  (3) after June 30, 1993, the department will recognize as
    20  allowable costs depreciation costs for existing, new, renovated
    21  or purchased facilities and interest costs on capital
    22  indebtedness on debt service incurred to finance a maximum cost
    23  per bed of forty-one thousand dollars ($41,000) for the fiscal
    24  year ending June 30, 1994. Thereafter, the forty-one thousand
    25  dollar ($41,000) per bed limit shall be adjusted annually to
    26  account for inflation using an index which reflects the changes
    27  in construction costs for such facilities. Nothing herein is
    28  intended to require the department to recognize depreciation and
    29  interest costs for facilities which the department would not
    30  otherwise recognize except to the extent that the current
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     1  twenty-two thousand dollar ($22,000) per bed limit shall be
     2  increased as provided herein.
     3     Section 2.  This act shall take effect immediately.


















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