MAINTENANCE OF EFFORT RATES
House Bill 6268
Sponsor: Rep. Charles LaSata
Committee: Appropriations
Complete to 11-22-02
A SUMMARY OF HOUSE BILL 6268 AS INTRODUCED 9-17-02
Under the Social Welfare Act, counties providing Medicaid-funded nursing home services in county-owned facilities must reimburse the state according to a county "maintenance of effort" rate determined on an annual basis for each patient day of Medicaid nursing home services. The current formula for determining the maintenance of effort rates was placed in the statute in 1984; the 1984 legislation included a "hold harmless" provision, capping the payment rates of counties that otherwise would have seen their payments increase under the new formula. The "hold harmless" provision expired in 1989, and in 1990 the legislature reinstated it and extended its life through 1994, and has since extended it several more times. It is currently scheduled to expire on December 31, 2003. House Bill 6268 would amend this provision of the Social Welfare Act to eliminate the sunset date, thereby extending the rate freeze indefinitely.
MCL 400.109
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This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.