COUNTY MEDICAL CARE FACILITIES S.B. 611:
FLOOR SUMMARY
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Senate Bill 611 (as reported without amendment) (as enrolled)
Sponsor: Senator Bruce Caswell
Committee: Appropriations
CONTENT
In the early 1980s, the Medicaid program began to provide reimbursement for long-term care services provided by county medical care facilities. Legislation was enacted to require counties to make maintenance of effort payments, using a formula based on changes in costs at the facility.
The legislation also includes a provision limiting a county's maintenance of effort payment to not more than the maintenance of effort payment that was required on September 30, 1984. This provision has always had a sunset date, which has been extended several times. The current sunset date in the statute is December 31, 2012.
Senate Bill 611 would amend the Social Welfare Act to change the date of the sunset to December 31, 2017.
MCL 400.109
FISCAL IMPACT
Failure to extend the sunset will result in an increase in county maintenance of effort payments to the State, effective January 1, 2013. This increase will result in savings to the State in the range of $1.0 million GF/GP, as the statute limits increases in maintenance of effort payments to $1 per patient day each year. If the sunset were delayed, the estimated State savings (and county cost) would not occur.
Date Completed: 10-17-11 Fiscal Analyst: Steve Angelotti
Analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent. sb611/1112