DMAS TO ISSUE CNA SETTLEMENT PAYMENTS 12/1/02

VHCA

During recent discussions between senior Department of Medical Assistance Services staff and VHCA, it appears that within the next few weeks, DMAS will issue long-awaited payment in settlement of additional Medicaid payments made to providers in 1999 and 2000 for enhanced nursing wages.  The amount of funds estimated to be available for distribution is $4.7 million.  The 1999 Appropriations Act appropriated $21.7 million for increased Medicaid payments to nursing homes.  These funds were intended to support direct care costs and $14 million of this amount was specifically targeted to a salary increase for CNAs, intended to average $1 per hour.

Effective July 1, 1999, each nursing facility was issued interim rates intended to pay the costs the facility had reported it would incur related to enhanced nursing wages paid between July 1, 1999 and June 30, 2000.  These interim rates were based on information reported by each facility via the DMAS FORM 0699, a form specifically designed for this purpose.

Funds made available because some providers experienced lower costs than expected have now been recovered by DMAS, with the exception of a few facilities that have declared bankruptcy since June 30, 2000.  As provided in regulations these recovered funds will now be made available for distribution to providers whose costs were higher than anticipated.  VHCA will provide nursing facility members with more specific information related to the settlement as soon as DMAS discloses the details of their settlement plan.