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HRD-80-1 1 (1979-10-15)

handle is hein.gao/gaobaazva0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES NO63 WAGIJNGTON. D.C. 548d B-164031(3) RELEASED OCTOBER 15, 1979 RMSTRCTEV -... ot to be released outsioe ..' AccOuntng Office except on the bsis of spec,1 1 ,val by the Office of Congressional Relations The Honorable Claude Pepper ,, Chairman, Select Committee / on Aging House of Representatives X- Dear Mr. Chairman: Subject: Potential Effects of a Proposed Amendment to Medicaid's Nursing Home Reimbursement Requirements L'AHRD8 0-.1. - By letter dated August 27, 1979, you asked for our views on a proposed amendment to section 1902(a)(13)(E) of the Social Security Act prescribing the method States must use under Medicaid to reimburse skilled nursing facilities (SNFs) and intermediate care facilities (ICFs), which are collec- tively referred to as nursing homes. Current law requires States to pay SNFs and ICFs on a reasonable-cost-related basis, using cost-finding methods approved and verified by the Department of Health, Education, and Welfare (HEW). The proposed amendment would require each State to pay SNFs and ICFs based on methods and standards developed by the State. The State would have to assure that its methods and standards result in payments that (1) meet the costs incurred by efficiently and economically run facilities which provide care in conformity with Federal and State requirements and (2) assure reasonable availability of services to Medicaid recipients at least to the extent services are available to the general population. BACKGROUND OF THE PROPOSED AMENDMENT The proposed amendment first arose when the Senate Committee on Finance staff proposed changing the reimburse- ment provision as a possible way to reduce Medicaid costs. I IIII III 11111l illIIII (990515) 1106315- 73

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