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
Amending the act of April 9, 1929 (P.L.343, No.176), entitled
"An act relating to the finances of the State government;
providing for cancer control, prevention and research, for
ambulatory surgical center data collection, for the Joint
Underwriting Association, for entertainment business
financial management firms, for private dam financial
assurance and for reinstatement of item vetoes; providing for
the settlement, assessment, collection, and lien of taxes,
bonus, and all other accounts due the Commonwealth, the
collection and recovery of fees and other money or property
due or belonging to the Commonwealth, or any agency thereof,
including escheated property and the proceeds of its sale,
the custody and disbursement or other disposition of funds
and securities belonging to or in the possession of the
Commonwealth, and the settlement of claims against the
Commonwealth, the resettlement of accounts and appeals to the
courts, refunds of moneys erroneously paid to the
Commonwealth, auditing the accounts of the Commonwealth and
all agencies thereof, of all public officers collecting
moneys payable to the Commonwealth, or any agency thereof,
and all receipts of appropriations from the Commonwealth,
authorizing the Commonwealth to issue tax anticipation notes
to defray current expenses, implementing the provisions of
section 7(a) of Article VIII of the Constitution of
Pennsylvania authorizing and restricting the incurring of
certain debt and imposing penalties; affecting every
department, board, commission, and officer of the State
government, every political subdivision of the State, and
certain officers of such subdivisions, every person,
association, and corporation required to pay, assess, or
collect taxes, or to make returns or reports under the laws
imposing taxes for State purposes, or to pay license fees or
other moneys to the Commonwealth, or any agency thereof,
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every State depository and every debtor or creditor of the
Commonwealth," in human services, further providing for
medical assistance payments for institutional care.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1602-T(1)(i) of the act of April 9, 1929
(P.L.343, No.176), known as The Fiscal Code, is amended to read:
Section 1602-T. Medical assistance payments for institutional
care.
Notwithstanding section 443.1(7)(iv) of the act of June 13,
1967 (P.L.31, No.21), known as the Human Services Code:
(1) Payments to county and nonpublic nursing facilities
enrolled in the medical assistance program as providers of
nursing facility services shall be determined in accordance
with the methodologies for establishing payment rates for
county and nonpublic nursing facilities specified in the
Department of Human Services's regulations and the
Commonwealth's approved Title XIX State Plan for nursing
facility services in effect after June 30, 2007. The
following shall apply:
(i) Subject to Federal approval of such amendments
as may be necessary to the Commonwealth's approved Title
XIX State Plan, the Department of Human Services shall
apply a revenue adjustment neutrality factor to county
and nonpublic nursing facility payment rates so that the
estimated Statewide day-weighted average payment rate in
effect for that fiscal year is limited to the amount
permitted by the funds appropriated by the General
Appropriation Act for the fiscal year. The revenue
adjustment neutrality factor shall remain in effect until
the sooner of June 30, 2026, or the date on which a new
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rate-setting methodology for medical assistance nursing
facility services which replaces the rate-setting
methodology codified in 55 Pa. Code Chs. 1187 (relating
to nursing facility services) and 1189 (relating to
county nursing facility services) takes effect[.] as
follows:
(A) For each fiscal year, beginning on or after
July 1, 2025, the revenue adjustment neutrality
factor applied to nonpublic nursing facility rates
shall be equal to or greater than 0.90.
(B) For each fiscal year, beginning on or after
July 1, 2025, the revenue adjustment neutrality
factor applied to county nursing facility rates shall
equal 1.00 plus the percentage rate of change used in
determining the revenue adjustment factor applied to
nonpublic nursing facility rates in clause (A).
* * *
Section 2. This act shall take effect in 60 days.
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