What Increases Would be Funded Under the Governor’s Budget?
•Although the Governor’s Budget in Brief document indicates the 2001-02 Medicaid nursing home rate increase would be 13.5%, the increases facilities actually would receive under the MA payment formula would be substantially less. Funds would be allocated as follows:
$40.0 million: In separate IGT payments to counties for property tax relief, to pay for costs associated with serving hard-to-care for residents and to cover losses for county facility downsizings.
$25 million (est.): Required to restore Medicaid formula cuts implemented in 2000-01.
$40.0 million (est.): Required to pay for inflationary costs incurred by facilities, over the past 12-18 months but not recognized by the payment system.
$10 million (est.): To fund future inflationary costs and to achieve modest improvements to the current Medicaid payment system.
•The IGT program also would fund a Medicaid
nursing facility rate increase of 4% in 2002-03.
