CHAPTER 101
SENATE BILL No. 126*
An  Act establishing the quality enhancement wage pass-through program for
nursing facilities.
Be it enacted by the Legislature of the State of Kansas:

      Section  1. (a) Notwithstanding any provision of law to the contrary,
and within the limits of appropriations therefor, the secretary of social
and rehabilitation services and the secretary on aging shall establish a
quality enhancement wage pass-through program as part of the state med-
icaid plan to allow nursing facilities electing to participate in such program
a payment option of not to exceed $4 per resident day designed to in-
crease salaries or benefits, or both, for those employees providing direct
care and support services to residents of nursing facilities. The categories
of employees eligible to receive the wage pass-through are the follow-
ing: Nurse aides, medication aides, restorative-rehabilitation aides, li-
censed mental health technicians, plant operating and maintenance per-
sonnel, nonsupervisory dietary personnel, laundry personnel,
housekeeping personnel and nonsupervisory activity staff. The program
shall establish a pass-through wage payment system designed to reim-
burse facilities during the reimbursement period in which the pass-
through wage payment costs are incurred.

      (b) Nursing facilities shall have the option to elect to participate in
the quality enhancement wage pass-through program. The wage pass-
through moneys are to be paid to nursing facilities outside of cost center
limits or occupancy penalties as a pass-through labor cost reimbursement.
The pass-through cost shall be included in the cost report base.

      (c) The quality enhancement wage pass-through program shall re-
quire quarterly wage audits for all nursing facilities participating in the
program. The quarterly wage audits will require facilities to submit cost
information within 45 days of the end of each quarter reporting on the
use of the wage pass-through payment under the quality enhancement
wage pass-through program. This quarterly wage audit process shall be
used to assure that the wage pass-through payment was used to increase
salaries and benefits to direct care and other support staff as specified in
this subsection or to hire additional staff that fall into the eligible person-
nel categories specified in this subsection.

      (d) No wage pass-through moneys shall be expended to increase man-
agement compensation or facility profits. A nursing facility participating
in the quality enhancement wage pass-through program which fails to file
quarterly enhancement audit reports shall be terminated from the pro-
gram and shall repay all amounts which the nursing facility has received
under the quality enhancement wage pass-through program for that re-
porting period.

      (e) All expenditures for the quality enhancement wage pass-through
program shall be made only from moneys specifically appropriated there-
for.

      (f) As used in this section, ``nursing facility'' means a nursing facility
as defined under K.S.A. 39-923 and amendments thereto or an inter-
mediate care facility for the mentally retarded as defined under K.S.A.
39-923 and amendments thereto.

 Sec.  2. This act shall take effect and be in force from and after its
publication in the statute book.

Approved April 14, 1999.