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Home My WebLink About1989-02-27 89-102 ORDERDae _?-vn-R? o hem No. 89-IO2 Item/Subject: Council Support for Proposed State Legislation Rexponslble Department; Horsing Facility Co memary: Maine Health Care Association has submitted proposed State Legislation to readjust the reimbUraement rate to intermediate care facilities. if approved, this Legislation would be beneficial to the City Nursing Facility. I recommend that the City Council support this Legislation and seeksupport from our State Legislative Delegation. This was presented to the Enterurise Operations Committee on 2-6-89 and was approved by the Committee to go to the full Council. Mprtar nt Heed Managers Comments: Iliz D� VA o, J" at "- Lune .�0u1 !VF"^f�.` o CUY Af+nagv Associated Information: I Order Budget Approval: N/A to 0irc Legal Approval: Gy wofor Introduced For JCJFR CJ First rst Reading - Page _ of ED Referral 89-102 Introduced by Councilor Tilley, February 27, 1989 CITY OF BANGOR (TITLE) (009r,... aiRiC24.swA11<f fcei rs!:cxsramioc+ Ba9eexmxxc mxe_,... By the City Gunnel of Oity of Danger' ORDERED, TIUT The City Council support proposed state legislation sulmitt by the Maine Health Care Association titled " An Act to Provide the Reasonable Cost of wages Paid to employees of 10 Term Care Facilities THAT The City Council mnt ct the Bangor area state legislative delegation seeking support for this legislation. IN CITY COUNCIL February 27, 1989 Passed QLCTU e 89-102 ORDER Title, Authorizing Council Support for Legislation BenefiHwB A e.,C/i//ty NureiuA Aacility. Qwa'kf K I`n`tGGroducedan/AdaA filed by ......1` . �.�Xf ........... U Councilmen 89-102 The attached legislation is proposed by the Maine Health Care Association to benefit all I.C.F. facilities statewide. It is currently on John Martin's desk. It has not been assigned an L.O. number yet. It has not been determined yet who will sponsor it. John Martin has expressed interest and may look for some co-sponsors. I suggest we contact our area legislators and ask for support for this proposed bill. As proposed it is verybeneficial to Bangor City. How- ever legal council for MHCA feelsthat section F is likely to be deleted during the legislative process. If so the bill would only be mildly beneficial to us. it is important that we emphasize that section F is an important part of the bill. R AN ACT to Provide the Reasonable Casts of Wages Enid to Employees of Long 'Perm Care Facilities. Emergency Emergency preamble. Whereas, Acta of the legislature do not became effective unl::il '30 days after adjournment unless enacted as emergencies; and Whereas, the nursing ing homes ire facing a fi.nn acial crisis glue to the labor shortage in health care occupations; and whereas, reimbursement under the Medicaid program forserviees Provided toeligiblepatients has fallen far behind thecostsof staffing to provide those services, and Whereas, in the judgment of the Legislature, these facts. create an emergency within thean ing of t1le Constitution of Maine and require the following legislation as immediately necessary for the Preservation of the pabli.c peace, health and safety; now, therefore, Be it enacted by the People of Elle State of Maine as follows: 22 MRgA 51703, nuU-52, as repealed Ind rpolaeed by P1, 1975, c. 265 51, is repealed and the IcJIOwing enacted ill its place: ComPeilsa t ion for nnursinLlon_ A nursing home, defined under section 181222-A`y�- a n, kioof a ornitil o institution oparaed s__ nursilyhoen h ae when the stale i5 liable for pavaneriLfcrearv, shp1J_ lie reimbursed t a i'a Le established I� the11 rsua [il L. this subveotinn The pry s of L11s U eefic 1..11 a,ppl ll fulid i icllnlin1 federal LUIIQS, , pall V,any ager]N 4f tyle_. Late to dIraillQ110 e fog_ya Lient care_, A. The rlepArLuncnt shall establish for each nurel-11 e home oaylllent rate o' pavinenl na le_1_L:i IJ to=ar te_=f rr_dcd _J hpmle. 4ucM1 ra t_e rales shall_Ue !-,ed nn tl( .1' 'tingl ttt"ibUl Ul C. ugh g 1111110 pd=Ler_'.nt=e1—by sAch a uatmq and anditi_' stand rds and rocemfuro a; -iia: dolarl- ent may ep LnbTisn. 0: '1_hu: dup_r LlnenL_'hsll not e=ejabli3h a maxilmtm limit sin roi.m Uursemelit for agliuslnents Lo Lha nrospecLive rate lot t flNor ^I LI the deParLmOrt establish a called "flat rale. C. The JmClrtm f. aIml l adiuut throravment ra_e for each �r_.f v llgmo lo_I ie s C Lbe rain to Ict lal eo:Ls for' npl be_Ilg_iao for all. employees refs January 1, 19u1. MHCA DRAFT December 20, 1988 Page 1 89-102 Facilities that demonstrate that their costs for wares and Y f1[s_o J --j-,-1989 Jonot accurately- reflect market conditions L 1,11C lab_)I 1 Lit WiN W) tlley are 10C_to lady L q SL additional incl _- D;__In_ a uubseguei year if a='il2olne_m;ty for _nv-_, Pur wages and benefits evened ._h_amount ll ee shar d one for wages vLd_benef rams she os[ shall be shared one-half I>y llLetnursf ng Moine duct 11r= h_iif_I>y I:he deoar Lmen 1. ___The -_ department _ shall u.^,c Lhe "skilled itt ing f ility" IJ15ke[ t a nbllshedy t t_lv lvy Da La Resource,, Inc. LO s_le_ermine n th_Increase annual. ii_t h eLlnant _ rate er rale. ... k e h_a_arsinn ,'nehert Chat tile wage nnL Pent Of_ibe' 'DRI_' +i11T he replaced by a r_Lnent uhL._l i_ reflects LYlewace nroi a%ues es tabllshe bl the Maille 11ellLh Care Finance CUmmissien to fp[eCasL the ajpfl; viag changes=n and Lenefits fear enmlv�we� of hospitals. '- F. The department aho;l amend the state health Plan and any >Iica bl errt. e, reVii tail: ion to res c nU its election to 1,ply Lhe cUwt t_ limits es Lahlivlled LnJer Merlo,are > ane to as. UP 5 41'1. 5e�rL Statement of Pact Bemuse of. the wide -reread shortage ofsing and other heal Lh etre personnel., Lung term c e facilities have been r.quir'ed Ge ) i wages and benefits at a rale faster than the Medicaid payment raLe. The r'es'ult has been continued and sustainer) losses to Maine's 134 nursing homes. Wivi.le nursing homes have been able Lo request and he granted additional pavmente to inci 'ea sering staff +ages, those increases have been entirely inadequate to :cvr the costs incurred to meet file dsmands Pk of the labor aret. 'The regulatrlry process for meet nperiaL +age adjustments ha;i also proved to be fell andnlLh+ie)dy E01 -both tile lh) e n ing homes and the department. In additi.on,Prcsl n9 homes p:tvebeen prevented from seeking reinbmrsement for wagp increase slid fringe benefits for Don- rn9 personnel such as houtiekeeping, laundry,a inl',enance, administrative, dielory, social servi•:e and activitiesemployees. The bill. is (los igied an in Lerim P e in adjust fOr Lhe drastic i reuses 1 wages and benefits untilra imbursement System, shish a ^Ca.•.o Mi.x." iv develoaofl to ruple ea the prospective payment systema This bill di.rccLv the Ileparlrment of human services to rebase MIICd DRAI`T December 20, 1988 Page 89-103 the Iledica:id payment. rate Lo long (.arm care facilities, reflecting the facilities actual coals of 111 employee Wages. If facilities lsls for wages and benefits oil Oanuary 1, 1.989 do not reflect the prevailing sage rates it the labor market for similar employees, they may request increases from Lhe departanalL on a case by case basis. The bill maintains the current system of sharing savings by the nursing home and the depar Unent and adds a system ofsharing excess cos Lw of wages and benefits.' It also prevents the Department from using .'their- curtent 1 systcia of artificial caps on employee wages and it directs the Department to remove the Optional Medicare cap on a- facility's' tontine service costs. - Finally, the bill es Lablishes a common wage proxysystemfor health c workers that Will allow nursing homes to increase wages Wallycare trates consi.s Lent with increases paid to hospital employees. MIICA DRAGT December 20, 1900 gage