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Sponsor Statement for HB 366
Assisted Living Rates

An Act relating to assisted living homes; and providing for an effective date.

Prior to the legislature passing SB 73 in 2000, the daily rate of reimbursement for assisted living homes had been $34.50 since 1991. While everyone else was getting raises to adjust to the cost of living increases, assisted living home providers were expected to carry out their responsibilities without any added reimbursement. I introduced HB 264, companion legislation to SB 73, in the House. This legislation was co-sponsored by Representative James.

It was the intent of passing SB 73 to simply raise the rate to $70.00 a day over a three-year period. The assisted living homes came to the legislature to get an increase in daily room and board for vulnerable adults. The legislature agreed with the industry that a raise in the room and board rate was needed and passed SB 73.

Language was added to SB 73 explicitly directing that this increase be done without adopting new regulations. New regulations have been adopted that allows the Division of Senior Services to reduce the daily minimum for room and board by paying for added services with Medicaid money. The legislature was not addressing services provided under the Medicaid waiver program and did not intend to add performance duties for services other than room and board (three meals and a bed) for assisted living when approving the raise. The fiscal notes submitted by the administration reflect that Senior Services and Medical Assistance clearly understood this. Senior Services now pays 40% of the minimum daily rate if a provider is approved for a Medicaid waiver is contrary to the language and the intent of SB 73.

HB 366 places the original intent in statute by renaming minimum daily rate with "per diem". It does so with a zero fiscal note because the fiscal notes on SB 73 have already reflected the increases.

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