By Naishtat H.B. No. 1001 77R1614 MCK-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the review of the reimbursement methodology for and 1-3 resource needs of nursing facilities. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. REVIEW OF REIMBURSEMENT RATES. (a) The Health 1-6 and Human Services Commission, in conjunction with the Texas 1-7 Department of Human Services, shall evaluate the methodology used 1-8 for determining Medicaid reimbursement rates for nursing 1-9 facilities. The commission and department shall: 1-10 (1) consider including legitimate costs of doing 1-11 business that are not currently included in the reimbursement rate; 1-12 and 1-13 (2) explore methods to adjust the reimbursement rate 1-14 to account for sudden increases in liability insurance rates and 1-15 other costs of doing business. 1-16 (b) The Health and Human Services Commission, in conjunction 1-17 with the Texas Department of Human Services, shall: 1-18 (1) evaluate the effectiveness of the Medicaid nursing 1-19 facility reimbursement rate methodology to provide incentives for 1-20 increased direct staffing; and 1-21 (2) examine the possibility of adding incentives to 1-22 Medicaid reimbursement rates for increased spending to improve the 1-23 diet of residents and other increased spending to improve the 1-24 quality of care and quality of life for residents. 2-1 SECTION 2. REVIEW OF TILE CLASSIFICATION SYSTEM. The Health 2-2 and Human Services Commission, in conjunction with the Texas 2-3 Department of Human Services, shall evaluate the Texas Index for 2-4 Level of Effort classification system used to quantify the 2-5 intensity of the care needs of individuals in nursing facilities 2-6 and to assign daily reimbursement rates for that care to determine 2-7 whether the system accurately accounts for the care needs of 2-8 patients with dementia, including patients with Alzheimer's 2-9 disease. 2-10 SECTION 3. REPORT TO LEGISLATURE. The Health and Human 2-11 Services Commission shall report the results of the evaluations 2-12 conducted under this Act to the governor, the lieutenant governor, 2-13 and the speaker of the house of representatives not later than 2-14 December 1, 2002. 2-15 SECTION 4. EFFECTIVE DATE. This Act takes effect September 2-16 1, 2001.