Today is day 43 of the 60-day short legislative session. There are 17 days remaining until the Legislature is scheduled to adjourn.

Today, the Senate and House Democrat budget leaders released 2022 supplemental budget proposals. Both the House Appropriations Committee and the Senate Ways and Means Committee will hold public hearings on their respective plans. Click here for the three-way budget comparison prepared by Carma Matti-Jackson.

For assisted living providers, the House budget would increase assisted living Medicaid rates to 74 percent of the funding methodology. The House plan would also increase specialized dementia care rates by just over $11 million for FY23. The Senate proposal would fund the rates model at 68 percent of the methodology and does not address specialized dementia care. We support the House level of funding for the final budget.

Skilled Nursing Facility Funding: Both budgets fund the July 1, 2022, rebase, but neither budget includes bridge funding for those skilled nursing facilities struggling to make it to the planned rebase in July. We will continue to press for this funding. The Senate proposal provides $16 million total funds to reduce the SNF occupancy penalty to 80 percent for FY 2023; the House proposal would drop the occupancy penalty to 70 percent. The House budget includes $48.6 million for the low wage earner add-on payment, the Senate budget does not. Overall, the House budget is currently more favorable than the Senate for skilled nursing providers.

The Senate budget expends $184 million to continue the COVID-19 rate enhancements for all provider types (not just LTC). For the Senate proposal, rates remain at current levels through June 30, 2022. The current add-on for SNFs is $8.33/per patient day. For assisted living, the funding level is $4.79 per patient day. Rates will be adjusted to reflect base rate increases funded in the 2021-23 biennial budget before being phased out by June 2024 by reducing them 20 percent every two quarters. Under the Senate proposal, it is anticipated COVID add-ons for SNF and AL will expire July 1, 2022, because the amount budgeted by the Senate for rates will exceed the amount of the add-on for AL and SNFs.

The House budget allocates $274 million to continue the COVID-19 rate enhancements for all provider-types (not just LTC). Rates remain at current levels through June 30, 2022. Beginning July 1, 2022, rates are reduced by 20% every 6 months and are fully phased out by FY25. We support the House funding level.

Both proposals fund the Nursing Care Quality Assurance Commission decision package recommendation for the LTC workforce. In addition to continuing efforts to streamline (and bring online) training and testing for certified nursing assistants, the proposal expands CNA to LPN apprenticeship program funding. Each also adds manpower to ensure licensing applications are approved within a 7-day period.

Both the House and Senate are scheduled to move proposals during Wednesday executive sessions in Ways and Means and Appropriations Committees. From there, the final budget negotiations will occur, as the Legislature races to the March 10 scheduled adjournment.