Letter to Chief Financial Officer regarding Health Facilities Cash Assessment and Temporary Contribution Programs - Nursing Homes

April 28, 2011

Dear Chief Financial Officer:

This letter provides notice of the statutory changes affecting the Health Facility Cash Assessment Program (HFCAP) for nursing homes and the imposition of the Temporary Nursing Home Stability Contribution pursuant to Chapter 59 of the Laws of 2011.

  • The HFCAP 6.0% base assessment rate has been extended through March 31, 2013.
  • The nursing home cash assessment rate has been increased by .8% as an alternative method for achieving savings that would otherwise be required to be achieved through a 2.0% reimbursement rate reduction, as authorized by Section 90 of Part H of the enacted 2011-12 budget (Chapter 59 of the Laws of 2011).
  • Additionally, a .4% Temporary Nursing Home Stability Contribution is being imposed for a limited period, pursuant to Section 101 of Part H.
  • These assessments\contributions will apply to all assessable revenues pursuant to the existing provisions of Section 2807-d of the Public Health Law. Any funds collected from the assessment increase and the temporary contribution described above will not be Medicaid reimbursable.
  • The following chart summarizes the revised assessment rates and applicable HFCAP periods:
Period HFCAP Base
Assessment
Rate		 Alternative
.8%
Adjustment		 Temporary
NH Stability
Contribution		 Combined
Rate
4/1/11 - 3/31/126.0%.8%.4%7.2%
4/1/12 - 10/31/126.0%.8%.2%7.0%
11/1/12 - 3/31/136.0%.8%---6.8%

Updated assessment and contribution reports, instructions and filing dates will soon be available on the Department's HFCAP website. Please note the April 2011 report will be due on May 17, 2011.

Lastly, all providers are strongly encouraged to submit their monthly payments to the Pool Administrator using Automated Clearing House (ACH) wires. Effective January 1, 2012, this payment method will become mandatory.

Should you have any additional questions, please call the Pool Administrator Help Desk at (315) 671-3800. If you should have any other questions, please contact Ms. Jeanne Wilson at DOH at (518) 474-1673.

Sincerely,

John E. Ulberg, Jr.
Director
Division of Health Care Financing