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Senate advances nursing‑home assessment bill to draw federal match for higher reimbursements

Utah State Senate · February 10, 2004
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Summary

First Substitute SB 128 would allow an assessment up to 6% on long‑term care facilities to create a state fund that draws federal Medicaid matching funds and redistributes reimbursements; sponsors said the move would raise Utah nursing‑home rates (cited $106/day) closer to neighboring states.

Senator Blackcomb introduced First Substitute SB 128, a proposal to assess long‑term care facilities up to 6 percent to create a fund administered by the Department of Health that can draw federal Medicaid match and distribute additional reimbursement to nursing homes. "When we do this, we're able to simply bring our reimbursement rate up to a more viable level," the sponsor said, noting Utah’s average reimbursement of about $106 per day and citing neighboring rates of roughly $130–$149 per day.

The bill is structured so the assessment rate is set to the maximum the state can draw down in federal funds; the sponsor said the Department of Health would determine the specific rate within the statutory cap so the mechanism yields the federal match without exceeding allowable draw. Senators raised concerns about delegating rate‑setting authority to an executive branch department. Senator Valentine asked who determines the rate; the sponsor replied the department will set the rate to match the federal draw constraints.

Supporters said the assessment is limited to long‑term care facilities and not hospitals or other providers, and that the objective is to stabilize and improve nursing‑home reimbursement. Opponents warned that transferring rate‑setting discretion to the executive branch raises governance questions; the sponsor said the mechanism is necessary to capture federal funds and maintain provider viability.

After discussion the Senate voted to move the first substitute of SB 128 to the third‑reading calendar for further consideration.