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House approves dedicated funding for long‑term care ombudsman from MCO assessments
Summary
Delegates approved Senate Bill 340, which provides ongoing funding for the Office of the Long‑Term Care Ombudsman sourced from managed‑care organization (MCO) assessments collected when insurers fail medical loss ratio requirements; the floor leader said assessments totaled roughly $120 million this year and about $2 million will go to the ombudsman.
The House passed Senate Bill 340 on March 31, approving a mandatory appropriation to support the Office of the Long‑Term Care Ombudsman. Delegates questioned the floor leader about the bill's financing and sustainability.
The floor leader explained the funding source: certain managed‑care organizations pay assessments when they fail to meet medical‑loss‑ratio (MLR) ratios, and these assessments produced roughly $120 million in the most recent cycle. "A portion of it is taken back into the general fund...$2 million of it...comes from the MCO assessment," the floor leader said, adding there is no escalation or sunset for that allocation. Members pressed whether the money should instead go directly back into Medicaid; the floor leader said the assessment mechanism channels funds to Medicaid and that a portion will fund the ombudsman because many nursing home residents are Medicaid beneficiaries.
After the exchange the clerk recorded 122 votes in the affirmative and one in the negative, and the bill was declared passed. Implementation will require accounting flows within the budget and coordination among agencies to direct the MCO assessment funds to the ombudsman appropriation.
