We are deeply disappointed that assisted living Medicaid rates were not addressed in the Inslee supplemental proposal, and will continue working to gain legislative support for increased funding. Click here for a presentation that details the need for additional resources for providers. Representative Jessica Bateman (D-22), vice chair of the Health Care Committee, and Representative Joe Schmick (R-9), ranking minority member on the House Health Care Committee, are sponsoring legislation to improve funding levels for assisted living providers. Click here for HB 1645, the legislation that was pre-filed this week in Olympia. The legislation moves Medicaid rates funding from the current level of 60 percent funded to 77 percent for FY 23. The bill would also move funding for 85 percent of the methodology in the following budget period.

For skilled nursing facilities, the Inslee plan would invest an additional $15.4 million GF-S by adjusting certain nursing facility occupancy penalties for the July 1, 2022, rates setting period. While we appreciate the additional state investment, we fear this proposal comes too late for skilled nursing providers requiring more immediate payment relief. The scheduled rebase from 2019 to 2020 costs will not occur until July 1, 2022, and a significant growth in costs and a hypercompetitive labor market are driving costs in an accelerated and immediate fashion. We are continuing to review the Governor’s proposal and will update you with additional details.

WHCA is working with DSHS and other stakeholders to advance early funding initiatives to address this pressing problem, and we are asking the Legislature to move the July 1, 2022, rebase up to April 1 to help stabilize facilities at imminent risk. We are also working with legislators, stakeholders, the Department, LeadingAge Washington, and SEIU 775 on a proposal that would drive state dollars to low wage workers in skilled nursing facilities.

While the Inslee proposal does extend COVID-19 emergency funding for all long term sectors through June 30, 2022, those rates are scheduled for phase out by 2024. The proposal uses enhanced federal dollars for a total of $500 million. In home, supported living, adult family home, assisted living and skilled nursing sectors will share these add-on dollars.

The Governor’s proposal also attempts to shore up hospital capacity by providing incentives for admitting hard-to-place hospital residents. The Inslee budget would offer incentive funding to long term care settings to take patients from acute care hospitals and maintain hospital capacity ($6.6 million Coronavirus State Fiscal Recovery Fund-Federal).

While the proposal will not address an immediate and critical staffing shortage that is driving the use of expensive and unreimbursed staffing agency labor, the Governor’s supplemental budget includes several recommendations from the Nursing Care Quality Assurance Commission and the Health Workforce Council, as well as other strategies, to eliminate the backlog of nursing licenses, attract new candidates to the nursing field, expand the capacity to train RNs, LPNs and CNAs, and recruit and retain staff in these critical positions. All told, the Inslee plan allocates over $30 million to these measures.

We are continuing our efforts to address the significant and unprecedented increases in agency staffing costs and are meeting with key legislators to seek relief through regulatory channels.

January 5 | 1:30-2:30 pm | Click here to register and join us. A Zoom link will be sent the day before the event.

The 2022 legislative session is a short session – thus, it is imperative that we work now to educate and inform the policymakers who will be tasked with developing and passing a state supplemental budget that will impact provider Medicaid rates from July 1, 2022, through June 30, 2023. There is certain to be other issues impacting your services and care, and it’s important that you understand what’s at stake. We also believe your advocacy with local legislators is critically important and will provide you with great information you can use in your advocacy efforts.

For questions, please email Sam Sullivan.

Thank you for making it a priority to remain engaged and involved in our legislative advocacy efforts. We understand that adequate, sustainable Medicaid funding is more important than ever.