AGING AND DISABILITY SERVICES ADMINISTRATION

March 28, 2001

AASA No. 01-008?

Re: Notification of May 1, 2001 Rate Reduction Based on the Noncapital Budget Dial

Dear Nursing Home Administrator:

RCW 74.46.421 (5) (b) states, in part, ?If the department determines that the weighted average nursing facility payment rate for the noncapital portion of the rate calculated in accordance with this chapter is likely to exceed the weighted average nursing facility payment rate for the noncapital portion of the rate identified in the biennial appropriations act, then the department shall adjust all nursing facility direct care, therapy care, support services, operations, and variable return payment rates proportional to the amount by which the weighted average rate allocation would otherwise exceed the budgeted noncapital portion of the rate amount.?

WAC 388-96-724 (1) states ?The department will notify the nursing facility at least twenty-eight calendar days in advance of the effective date of a reduction taken under RCW 74.46.421.?

The purpose of this letter is to provide the twenty-eight calendar days notice required in WAC 388-96-724 (1).? In accordance with WAC 388-96-724 (2) the effective date of the reduction taken under RCW 74.46.421 is May 1, 2001.

According to Laws of 2000, Second Special Session, Chapter One, Section 207 (3), the weighted average nursing facility payment rate for fiscal year 2001 shall be no more than $111.21 for the non-capital portion of the rate.? Departmental records show that the weighted average non-capital portion of the nursing facility payment rate is currently $111.84, necessitating a reduction of 3.4 percent per nursing facility.? Documents showing your May 1, 2001 Medicaid rate after the reduction will be forwarded to your facility at a later date.

Please call your Medicaid rate analyst or Jim Lochner, Nursing Home Rates Section Manager, at (360) 725-2466 if you have any questions about this letter.

Sincerely,

Denise Gaither, Director

Management Services Division

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