February 9, 2024
Greetings!

We have crossed over the halfway point of the 2024 legislative session. There are just 27 days left before the Legislature adjourns. We have three priorities for the final days of session: 

  • Support passage of SSB 5802 to allow DSHS (Department of Social and Health Services) flexibility to implement the data set from the patient driven payment model (PDPM) 

  • Maintain rate rebases for both skilled nursing and assisted living providers in the state supplemental budget; and 

  • Support the DSHS recommendation to increase assisted living Medicaid funding for base rates and for specialized dementia care. 
PDPM Legislation Passes Senate Floor – SSB 5802 

Last night, SSB 5802 passed the Senate floor on a unanimous vote. From here, the legislation travels to the House for consideration. Washington State has utilized an acuity-based payment system for Medicaid rates in skilled nursing facilities since the 1990s. This bill will continue Washington’s long-standing policy to base skilled nursing facility Medicaid rates on patient care needs, incentivizing nursing homes to accommodate the highest acuity patients: those who need the most care. The federal data system we rely on to determine acuity became obsolete on October 1, 2023, and SB 5802 allows the state to use the new federal acuity data system (PDPM) to set Medicaid rates. If SB 5802 is not passed, the only alternative is to freeze case mix and suspend the acuity adjustment that determines payment. Click here to send a message to your House members encouraging their support for the legislation. 
Supplemental Budget Priorities 

On February 14, the Washington State Economic Review and Forecast Council will meet for an update on Washington’s economic status, providing the most current baseline for Washington budget writers. Our goal is to maintain the funding allocated for rebases for both skilled nursing and assisted living care. Those rebases are critical to keeping up with actual care costs, and we appreciate the additional necessary funding, which goes into effect on July 1, 2024.  

There is more to be done for assisted living Medicaid funding. We support the DSHS recommendation for additional assisted living Medicaid funding to recognize current labor costs and maintain Medicaid access to care in licensed assisted living centers: 

  • Fund the assisted living labor rate so that providers can compete for workers. The current assisted living Medicaid rate only reimburses wages at 79 percent of the benchmarked cost. DSHS recommended increasing the funding to 95 percent of labor costs. ($23,185,000 GF-S) 

  • Improve specialized dementia care funding. The current reimbursement rate for specialized dementia care services is not adequate; DSHS recommended increasing the add-on rate for these services from $43.48 to $60 per resident day. ($3,256,000 GF-S) 
 
We will keep you apprised as House and Senate budgets are released. Your continued advocacy support is essential to moving these measures. Legislators who represent your interests need to know about, understand, and support this work, and it is your direct communication that ensures our success. Please email your legislators today. 
As always, the WHCA Government Relations Team is standing by to support you in your advocacy work. We are proud to represent you in Olympia.