ALTSA Governor's 2020 Supplemental report

December 19, 2019

 

Dear Interested Stakeholder,

Governor Inslee released his proposed 2020 supplemental budget yesterday. Nursing facilities remain an important option in the long-term services and supports system and we are pleased to see that the Governor has provided funding to allow the Department to adjust nursing facility rates in a manner that is more dynamic and responsive to changing economic conditions. Additionally, there are investments in in-home care with funds for implementing the Consumer Directed Employer (CDE) and a change for home care agency rates with a revised statutory definition of parity with individual provider bargaining.

Below are the significant items within the Governor’s budget proposal that pertain to the DSHS, Aging and Long-Term Support Administration (ALTSA):

  • Nursing Home Medicaid Rates:  There have been an increasing number of nursing home closures over the last year, just as our state’s population of seniors is dramatically increasing. Funding is provided to better align nursing facility Medicaid payment rates with facility operating costs. ($15.3M GF-S; $30.5M Total Funds)

  • Consumer Directed Employer: DSHS continues implementation of ESSB 6199, an act relating to the Consumer Directed Employer (CDE) program. This bill was enacted by the Legislature during the 2018 Regular Session and requires DSHS to contract with up to two CDE vendors to be the legal employer of individual providers (IPs) for the purposes of performing administrative functions. ($14.7M GF-S; $30.5M Total Funds)

  • Agency Provider Parity update: Funding is provided for employer taxes for home care agency providers, supporting agency request legislation which would change the agency parity methodology so that future parity will provide sufficient funding to home care agencies to pay required employer taxes. ($439,000 GF-S; $1.0M Total Funds)

  • Restore Nursing Home Discharge Reduction: Funding restores a reduction taken in the biennial budget to the Medicaid nursing home caseload forecast, realigning it with historic trends. ($9.5M GF-S; $17.7M Total Funds)

  • Asset Verification System: This is a continuation of the implementation of a federally-compliant asset verification system for asset-based Medicaid eligibility decisions. ($500,000 GF-S; $1.0M Total Funds; 2.6 FTE)

  • Service Plan Signatures: DSHS is required by federal rule to implement new processes necessary to ensure compliance with federal requirements to collect provider signatures on all service care plans. ($3.0M GF-S; $6.1M Total Funds)

This is only the first step in the supplemental budget process. The 60-day legislative session begins on January 13, 2020. During session, the House and Senate will each release a budget and from there a final conference operating budget will ultimately be passed by the Legislature. For additional detail on ALTSA’s portion of the budget, you may visit: Governor's proposed 2020 DSHS ALTSA budget.

Thank you for the support you provide to individuals in need throughout our state. Have a safe and happy holiday season.

 

Sincerely,

Bill Moss, Assistant Secretary

Aging and Long-Term Support Administration

DSHS: Transforming Lives

CHA Washington