Washington



HCS MB 2007-038

Procedure

July 1, 2007

| TO: |Area Agency on Aging (AAA) Directors |

| |Home and Community Services (HCS) Division Regional Administrators |

| |Division of Developmentally Disabled Regional Administrators |

|FROM: |Bill Moss, Director, Home and Community Services Division |

| | |

| |Kathy Marshall, Director, Management Services Division |

|SUBJECT: |Licensed Boarding Homes With Assisted Living Contracts That Will Receive A Capital Add-On Rate For July 1, |

| |2007 Through June 30, 2008. |

|Purpose: |To notify field staff the Licensed Boarding Homes with Assisted Living (AL) contracts that will receive a |

| |capital add-on to their Medicaid daily rate for the fiscal year beginning July 1, 2007 and ending June 30, |

| |2008. |

|Background: |In the 2006 Session, the Legislature passed ESHB 2925, which the Governor signed into law effective July 1,|

| |2006. ESHB 2925 adds a new section to chapter 74.39A RCW. Under this new section and the amendments to |

| |WAC 388-106-0035, effective July 1, 2006, the department will: |

| |pay a capital add-on rate for every fiscal year (July 1 to June 30) to any AL contractor that has a |

| |Medicaid Occupancy Percentage of 60 percent or greater. The Medicaid Occupancy Percentage will be |

| |calculated using Medicaid service days from the last six months of the calendar year preceding the |

| |applicable fiscal year divided by the product of all the AL contractors’ licensed boarding home beds |

| |irrespective of use, times calendar days for the same six-month period; |

| |include in Medicaid service days those for clients who are enrolled in a Medicaid managed long-term care |

| |program, including but not limited to the program for all inclusive care (PACE) and the Medicaid/Medicare |

| |integration project (MMIP); |

| |Construction standards are not considered in determining which AL contractors will receive a capital add-on|

| |rate. |

|What’s new, changed, or |The WAC and procedure remain the same as they were for fiscal year July 1, 2006 through June 30, 2007. |

|Clarified | |

|ACTION: |By the July 2007 SSPS cutoff date, field staff must adjust rates to “AL with a capital add-on rate” for all|

| |Medicaid residents receiving assisted living services in the facilities listed in Attachment A. |

| | |

| |Also, by the July 2007 SSPS cutoff date, field staff must adjust rates to “AL without a capital add-on |

| |rate” for all Medicaid residents currently receiving assisted living services in the facilities listed in |

| |Attachment B. |

|Related |Chapter 260 Laws of 2006; WAC 388-105-0035 |

|REFERENCES: | |

| |View all July 1, 2007 rates at: |

| | |

| | |

| | [pic] |

|ATTACHMENT(S): |Attachment A: AL contractors with sixty percent or greater Medicaid Occupancy for July 1, 2006 through |

| |December 31, 2006 and eligible to receive a capital add-on rate from July 1, 2007 through June 30, 2008. |

| | |

| |[pic] |

| |Attachment B: AL contractors with 60 percent or greater Medicaid Occupancy for July 1, 2005 through |

| |December 31, 2005 that are not eligible to receive a capital add-on rate for July 1, 2007 through June 30, |

| |2008 because they did not meet the sixty percent or greater Medicaid Occupancy for July 1, 2006 through |

| |December 31, 2006. |

|CONTACT(S): |Joe LaChance |

| |(360) 725-2445 |

| |lachajl@dshs. |

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