Medical assistance-hospice care.

13LSO-0201.L1

FISCAL NOTE

	FY 2014	FY 2015	FY 2016
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue (Decrease):
FEDERAL FUNDS	(242,665)	(242,665)	(242,665)
Anticipated Expenditure (Decrease):
FEDERAL FUNDS	(242,665)	(242,665)	(242,665)

Source of revenue and expenditure decrease:

Room and board at a nursing facility for a hospice patient is eligible for federal match. Room and board at a hospice facility for the same patient is not eligible for federal match per Code of Federal Regulations 1902(a)(13)(B) of the Social Security Act,  and will have to be paid with 100% state funds. This bill limits the reimbursement rate for hospice care at a hospice facility to 50% of the statewide average of the Medicaid nursing home room and board rate and therefore will not increase general fund expenditures. The decreased reimbursement rate will be completely absorbed by the hospice facility.

Assumptions:

In state FY 2012 there were 65 hospice clients served in nursing facilities at a total cost (General Fund/Federal Fund 50% FMAP) of $485,330 at an average yearly rate of $7,467. The federal revenue and expenditure decrease above is based on all 65 hospice clients opting to move from a nursing facility to a hospice facility.

Prepared by:   Alex Kean, LSO   Phone: 777-7881

(Information provided by: Kim Latta & Matt Hagar, Dept. of Health

Phone: 777-2485 & 777-6099)