Senate/Assembly pass managed care tax legislation, including elimination of DP/NF clawback

Both the Assembly and Senate passed the managed care organization (MCO) financing package on February 29.  Of interest to district/municipal hospitals, in addition to ensuring a budget “hole” is not left unfilled by the expiration of the MCO tax, is the elimination of the “clawback” for hospital-based skilled nursing facilities.  (The package contains funding for services for the developmentally disabled as well.)

The DP/NF “clawback” was a result of reductions enacted by the Legislature in 2011 as part of the state’s efforts to closing the budget deficit which were reversed prospectively in 2013.  The bill passed today eliminates the retroactive recoupment.  Including the elimination of the clawback was the result of negotiation by all stakeholders, led by CHA.  All hospitals with DP/NFs are most appreciative of this years-long negotiation!

The governor signed the bill into law on March 1.