Federal Stimulus Legislation Being Finalized

VHCA (2/13/2009)

In Washington, the House and Senate have struck a deal on the Economic Recovery and Reinvestment Act. The information presented below was the current assessment of the provisions related to long term care as of late afternoon on Thursday, February 12.  Please keep in mind that this is very preliminary information.  NO full floor votes have been taken which is the next and final step before the legislation goes to the President for his signature.

Temporary FMAP Medicaid increase -- $86.7 billion

• For Virginia Medicaid, the FMAP enhancement total is $1.47 billion over the 27-month period
• Nearly $700 million of this amount would be received in Virginia state fiscal year 2010
• Enhanced FMAP is an across-the-board increase to all states of 6.2%
• Additional bonus available to states based on the state’s unemployment rate
• 65% of the funding would be doled out through the 6.2% FMAP increase to each state, while 35 % would be distributed through the bonus
• Duration is a 27-month period beginning 10/1/2008 through 12/31/2010
• Maintenance of effort on eligibility

Prompt payment requirements for nursing facilities and hospitals -- $680 million

• This provision applies requirements for prompt Medicaid payment by states to nursing facilities and hospitals for the duration of the enhanced FMAP funds. 

Moratoria on Medicaid regulations extended -- $100 million

• Extends moratoria on Medicaid regulations for targeted case management, provider taxes, and school-based administration and transportation services through June 30, 2009
• Adds moratorium on Medicaid regulation for hospital outpatient services through June 30, 2009
• Sense of Congress that the Secretary of HHS should not promulgate regulations concerning intergovernmental transfers, Graduate Medical Education, and rehabilitative services

Health Information Technology -- $19 billion

• Of this amount, $2 billion is for state-level grants.  It appears that SNF, NF and other providers as determined by the Secretary of HHS will be eligible to apply to the states for some of these funds. 

Additional information on the stimulus legislation will be provided over the next few days.