LRB-4772/1
DAK:cjs:pg
2005 - 2006 LEGISLATURE
March 9, 2006 - Introduced by Senators Robson and Schultz, cosponsored by
Representatives Benedict and Sheridan. Referred to Committee on Health,
Children, Families, Aging and Long Term Care.
SB662,1,3
1An Act to amend 49.45 (6m) (ar) 1. a. of the statutes;
relating to: requiring the
2Department of Health and Family Services to treat 4 counties as one labor
3region for purposes of Medical Assistance nursing home reimbursement.
Analysis by the Legislative Reference Bureau
Under current law, the Department of Health and Family Services (DHFS)
reimburses nursing homes for services provided to recipients of Medical Assistance
(MA), under a formula that includes allowable direct care costs. DHFS must
establish standards for payment of allowable direct care costs that are based on
direct care costs for all nursing homes in Wisconsin, and adjust the standards to
reflect regional labor cost variations. Currently, except for nursing homes in
Douglas, Pierce, and St. Croix counties, DHFS makes this adjustment by using the
labor region designations under the federal Medicare Program, weighted to MA
patient day costs, based on Wisconsin nursing home-specific average wages,
excluding county-owned nursing homes. For nursing homes in Douglas, Pierce, and
St. Croix counties, however, DHFS must make the adjustment using the Medicare
Program hospital wage index.
This bill requires DHFS to treat as one labor region, the counties of Dane, Iowa,
Columbia, and Rock, for purposes of MA nursing home reimbursement.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB662, s. 1
1Section
1. 49.45 (6m) (ar) 1. a. of the statutes is amended to read:
SB662,2,132
49.45
(6m) (ar) 1. a. The department shall establish standards for payment of
3allowable direct care costs under par. (am) 1. bm., for facilities that do not primarily
4serve the developmentally disabled, that take into account direct care costs for a
5sample of all of those facilities in this state and separate standards for payment of
6allowable direct care costs, for facilities that primarily serve the developmentally
7disabled, that take into account direct care costs for a sample of all of those facilities
8in this state. The standards shall be adjusted by the department for regional labor
9cost variations.
The department shall treat as a single labor region the counties of
10Dane, Iowa, Columbia, and Rock. For facilities in Douglas, Pierce, and St. Croix
11counties, the department shall perform the adjustment by use of the wage index that
12is used by the federal department of health and human services for hospital
13reimbursement under
42 USC 1395 to
1395ggg.
