SB 692 — An Act amending the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal Code, in human services, further providing for medical assistance payments for institutional care.

PRINTER'S NO.   849

                  THE GENERAL ASSEMBLY OF PENNSYLVANIA



                      SENATE BILL
                      No. 692
                                             Session of
                                               2025

     INTRODUCED BY ARGALL, FARRY, STEFANO, J. WARD, SCHWANK AND
        FLYNN, MAY 29, 2025

     REFERRED TO INSTITUTIONAL SUSTAINABILITY AND INNOVATION,
        MAY 29, 2025


                                  AN ACT
 1   Amending the act of April 9, 1929 (P.L.343, No.176), entitled
 2      "An act relating to the finances of the State government;
 3      providing for cancer control, prevention and research, for
 4      ambulatory surgical center data collection, for the Joint
 5      Underwriting Association, for entertainment business
 6      financial management firms, for private dam financial
 7      assurance and for reinstatement of item vetoes; providing for
 8      the settlement, assessment, collection, and lien of taxes,
 9      bonus, and all other accounts due the Commonwealth, the
10      collection and recovery of fees and other money or property
11      due or belonging to the Commonwealth, or any agency thereof,
12      including escheated property and the proceeds of its sale,
13      the custody and disbursement or other disposition of funds
14      and securities belonging to or in the possession of the
15      Commonwealth, and the settlement of claims against the
16      Commonwealth, the resettlement of accounts and appeals to the
17      courts, refunds of moneys erroneously paid to the
18      Commonwealth, auditing the accounts of the Commonwealth and
19      all agencies thereof, of all public officers collecting
20      moneys payable to the Commonwealth, or any agency thereof,
21      and all receipts of appropriations from the Commonwealth,
22      authorizing the Commonwealth to issue tax anticipation notes
23      to defray current expenses, implementing the provisions of
24      section 7(a) of Article VIII of the Constitution of
25      Pennsylvania authorizing and restricting the incurring of
26      certain debt and imposing penalties; affecting every
27      department, board, commission, and officer of the State
28      government, every political subdivision of the State, and
29      certain officers of such subdivisions, every person,
30      association, and corporation required to pay, assess, or
31      collect taxes, or to make returns or reports under the laws
32      imposing taxes for State purposes, or to pay license fees or
33      other moneys to the Commonwealth, or any agency thereof,
 1      every State depository and every debtor or creditor of the
 2      Commonwealth," in human services, further providing for
 3      medical assistance payments for institutional care.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.      Section 1602-T(1)(i) of the act of April 9, 1929
 7   (P.L.343, No.176), known as The Fiscal Code, is amended to read:
 8   Section 1602-T.      Medical assistance payments for institutional
 9                care.
10      Notwithstanding section 443.1(7)(iv) of the act of June 13,
11   1967 (P.L.31, No.21), known as the Human Services Code:
12          (1)   Payments to county and nonpublic nursing facilities
13      enrolled in the medical assistance program as providers of
14      nursing facility services shall be determined in accordance
15      with the methodologies for establishing payment rates for
16      county and nonpublic nursing facilities specified in the
17      Department of Human Services's regulations and the
18      Commonwealth's approved Title XIX State Plan for nursing
19      facility services in effect after June 30, 2007. The
20      following shall apply:
21                (i)    Subject to Federal approval of such amendments
22          as may be necessary to the Commonwealth's approved Title
23          XIX State Plan, the Department of Human Services shall
24          apply a revenue adjustment neutrality factor to county
25          and nonpublic nursing facility payment rates so that the
26          estimated Statewide day-weighted average payment rate in
27          effect for that fiscal year is limited to the amount
28          permitted by the funds appropriated by the General
29          Appropriation Act for the fiscal year. The revenue
30          adjustment neutrality factor shall remain in effect until
31          the sooner of June 30, 2026, or the date on which a new


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 1        rate-setting methodology for medical assistance nursing
 2        facility services which replaces the rate-setting
 3        methodology codified in 55 Pa. Code Chs. 1187 (relating
 4        to nursing facility services) and 1189 (relating to
 5        county nursing facility services) takes effect[.] as
 6        follows:
 7                   (A)   For each fiscal year, beginning on or after
 8             July 1, 2025, the revenue adjustment neutrality
 9             factor applied to nonpublic nursing facility rates
10             shall be equal to or greater than 0.90.
11                   (B)   For each fiscal year, beginning on or after
12             July 1, 2025, the revenue adjustment neutrality
13             factor applied to county nursing facility rates shall
14             equal 1.00 plus the percentage rate of change used in
15             determining the revenue adjustment factor applied to
16             nonpublic nursing facility rates in clause (A).
17             * * *
18    Section 2.    This act shall take effect in 60 days.




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