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
$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.