MEDICAID-NURSING HOME RATES

Amends the Illinois Public Aid Code. Provides that under the Medicaid program, the Department of Public Aid's standards of payment for long-term care must take into account a nursing facility's transactions with related individuals or entities, including overpayments made to a related individual or entity. Provides for deductions from the Medicaid reimbursement otherwise due a nursing facility if the facility (i) had combined transactions with related individuals and related entities totaling more than 10% of the facility's total expenses for a fiscal year or (ii) made payments to a related entity that exceeded the entity's operating costs for a fiscal year. Provides that in determining payment rates for long-term care, the Department shall assure the opportunity for a profit not to exceed 10% of a facility's total revenue for a fiscal year (instead of simply "a profit"). Provides for deductions from the Medicaid reimbursement otherwise due a facility if the facility (i) failed to apply any profits in excess of 10% of revenues to patient-care-related expenses or (ii) paid a salary to a person holding an ownership interest in the facility or in a related entity that exceeded 1% of the facility's Medicaid reimbursement. Effective January 1, 2006.