Texas Legislator Proposes Increasing Medicaid Nursing Home Reimbursements Through Occupancy Tax

Texas nursing homes would receive increased payments under a proposal that would charge the facilities a "quality assurance fee" of $5 per occupied bed each day, the AP/Ft. Worth Star-Telegram reports. Funds collected from the nursing homes would be used to increase Medicaid reimbursements and provide for wage increases and "expensive liability coverage." State Rep. Craig Eiland (D), who is sponsoring the proposal, said the fee would raise $339 million for the next two years. He added that since 71% of the nursing home beds in the state receive Medicaid funding, the federal government would match the spending with $509 million, bringing the total to $848 million. Under the proposal, $517 million would be used for reimbursements, $332 million would go toward additional wage and staff increases and a "separate $10 million fund" would pay for liability insurance. Eiland added that increased Medicaid reimbursements would bring Texas up to the national average of $110 per day; currently, Texas ranks 45th in Medicaid reimbursements for nursing homes, paying $85 per day. The Star-Telegram reports that 40% of the state's nursing homes are in bankruptcy because of low reimbursements. Lawmakers, however, have been unable to provide assistance because of a "tight budget" and rising Medicaid costs. Eiland said his plan is "the only way to help the most" nursing homes, but some private facilities, which do not receive Medicaid funding and have criticized the plan, will not benefit. The proposal would also direct some of the funding to the Mental Health and Mental Retardation Department for use at state hospitals and schools (Mabin, AP/Ft. Worth Star-Telegram, 4/11).