Committee adds study and advances bill to align adult residential rates with nursing-home reimbursements

The Appropriations Committee voted to add a study and advance Senate Bill 2271, an appropriation intended to raise reimbursement rates for certain adult residential or memory-care facilities to the same basic care model used for nursing homes.

Representative Nelson told the committee the bill addresses a reimbursement gap: adult residential facilities that provide memory care had not received the same biennial inflator increases applied to nursing homes. The appropriation in the bill—described in committee discussion as approximately $1,700,000 in general fund—would bring those facilities "up to the nursing home or the basic care model or reimbursement rate," Nelson said. Committee members and presenters said the adjustment is justified because placing these individuals in skilled nursing care would be significantly more expensive.

During debate members questioned whether the increase would be eligible for federal matching funds (FMAP) and how private-pay patients would be affected. Nelson and others said federal matching would apply only to the Medicaid-eligible population and that the appropriation was structured as general fund to cover the need. The committee added a study provision intended to examine reclassifying these facilities into the long-term care/basic care classification so that the Legislature would not have to revisit the issue frequently.

Representative Mitscog moved the study amendment; it was seconded and passed on a roll call recorded as 21 yes, 0 no, and 2 absent. The committee later voted to advance SB 2271 as amended; the final roll call was recorded as 21 yes and 2 absent. Representative Mitscog was named the floor carrier for the bill.