Montana Administrative Register Notice 37-861 No. 15   08/10/2018    
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In the matter of the amendment of ARM 37.40.307 pertaining to nursing facility reimbursement rates for state fiscal year 2019







TO: All Concerned Persons


            1. On August 31, 2018, at 10:00 a.m., the Department of Public Health and Human Services will hold a public hearing in the auditorium of the Department of Public Health and Human Services Building, 111 North Sanders, Helena, Montana, to consider the proposed amendment of the above-stated rule.


2. The Department of Public Health and Human Services will make reasonable accommodations for persons with disabilities who wish to participate in this rulemaking process or need an alternative accessible format of this notice. If you require an accommodation, contact the Department of Public Health and Human Services no later than 5:00 p.m. on August 17, 2018, to advise us of the nature of the accommodation that you need. Please contact Todd Olson, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; telephone (406) 444-9503; fax (406) 444-9744; or e-mail dphhslegal@mt.gov.


3. The rule as proposed to be amended provides as follows, new matter underlined, deleted matter interlined:


37.40.307 NURSING FACILITY REIMBURSEMENT (1) remains the same.

            (2) Effective July 1, 2001, and in subsequent rate years, nursing facilities will be reimbursed using a price-based reimbursement methodology. The rate for each facility will be determined using the operating component defined in (2)(a) and the direct resident care component defined in (2)(b):

            (a) through (c) remain the same.

            (d) The total payment rate available for the period July 1, 2018 September 1, 2018 through June 30, 2019 will be the rate as computed in (2), plus any additional amount computed in ARM 37.40.311 and 37.40.361.

            (3) Providers who, as of July 1 of the rate year, have not filed with the department a cost report covering a period of at least six months participation in the Medicaid program in a newly constructed facility will have a rate set at the statewide median price as computed on July 1, 2018 September 1, 2018. Following a change in provider as defined in ARM 37.40.325, the per diem rate for the new provider will be set at the previous provider's rate, as if no change in provider had occurred.

            (4) through (12) remain the same.



AUTH: 53-2-201, 53-6-113, MCA

IMP: 53-6-101, 53-6-111, 53-6-113, MCA




The Department of Public Health and Human Services (department) is proposing a provider rate increase effective September 1, 2018. The rate increase reverses across-the-board provider rate reductions implemented in state fiscal year (SFY) 2018. The department proposes to raise Medicaid nursing facility rates effective September 1, 2018 by 3.56%.


ARM 37.40.307


The proposed amendment to (2)(d) and (3) changes a SFY 2019 date reference from July 1, 2018 to September 1, 2018. This change is necessary for the department to provide notice of the change in Medicaid nursing facility provider rates and the Medicaid nursing facility statewide median price.


Rate calculations include House Bill (HB) 2 and HB 618 funding appropriated by the 65th Legislative Session, annualized SFY 2018 Medicaid paid days adjusted to the 10 months remaining in SFY 2019 (September 1 to June 30), and individual facility case mix index (resident acuity) to determine nursing facility providers' reimbursement according to the methodology outlined in (2), (2)(a), and (2)(b) of the rule.




Nursing facility reimbursement will include an increase of 3.56% in provider rates. The estimated total funding available for SFY 2019 for nursing facility reimbursement is estimated at approximately $202,688,201 of combined state funds, federal funds, and patient contributions. These numbers do not include at risk provider funds or direct care wage funding.


This proposed rule amendment increases estimated expenditures in the nursing home program by $2,055,776 in state funds and $3,834,712 in federal funds in SFY 2019.


Anticipated days for SFY 2019 are 1,002,018 using estimates from SFY 2018 Medicaid paid days. 835,015 days are used in the rate calculation ((1,002,018/12)*10).


Seventy-one nursing facility providers participated in the Medicaid nursing facility payment program and approximately 4,200 recipients received services in nursing facilities under Medicaid


            5. Concerned persons may submit their data, views, or arguments either orally or in writing at the hearing. Written data, views, or arguments may also be submitted to: Todd Olson, Department of Public Health and Human Services, Office of Legal Affairs, P.O. Box 4210, Helena, Montana, 59604-4210; fax (406) 444-9744; or e-mail dphhslegal@mt.gov, and must be received no later than 5:00 p.m., September 10, 2018.


6. The Office of Legal Affairs, Department of Public Health and Human Services, has been designated to preside over and conduct this hearing.


7. The department maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name, e-mail, and mailing address of the person to receive notices and specifies for which program the person wishes to receive notices. Notices will be sent by e-mail unless a mailing preference is noted in the request. Such written request may be mailed or delivered to the contact person in 5 above or may be made by completing a request form at any rules hearing held by the department.


8. The bill sponsor contact requirements of 2-4-302, MCA, do not apply.


9. With regard to the requirements of 2-4-111, MCA, the department has determined that the amendment of the above-referenced rule will not significantly and directly impact small businesses.


10. Section 53-6-196, MCA, requires that the department, when adopting by rule proposed changes in the delivery of services funded with Medicaid monies, make a determination of whether the principal reasons and rationale for the rule can be assessed by performance-based measures and, if the requirement is applicable, the method of such measurement. The statute provides that the requirement is not applicable if the rule is for the implementation of rate increases or of federal law.


The department has determined that the proposed program changes presented in this notice are not appropriate for performance-based measurement and therefore are not subject to the performance-based measures requirement of 53-6-196, MCA.


            11. The department intends to apply this rule amendment retroactively to September 1, 2018. A retroactive application of the proposed rule amendment does not result in a negative impact to any affected party.



/s/ Brenda K. Elias                                       /s/ Sheila Hogan                                         

Brenda K. Elias                                            Sheila Hogan, Director

Rule Reviewer                                             Public Health and Human Services



Certified to the Secretary of State July 31, 2018.

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