Procedure
H09-034
June, 2009
TO: / Area Agency on Aging (AAA) Directors
Home and Community Services (HCS) Regional Administrators
Division of Developmental Disabilities (DDD) Regional Administrators
FROM: / Bill Moss, Director, Home and Community Services Division
Kathy Marshall, Director, Management Services Division
Linda Rolfe, Director, Division of Developmental Disabilities
SUBJECT: /
LICENSED BOARDING HOMES WITH ASSISTED LIVING CONTRACTS RECEIVING A CAPITAL ADD-ON RATE
JULY 1, 2009 THROUGH JUNE 30, 2010.
Purpose: / To notify field staff the Licensed Boarding Homes with Assisted Living (AL) contracts that will receive a capital add-on to their Medicaid daily rate for the fiscal year beginning July 1, 2009 and ending June 30, 2010.
Background: / Under chapter 74.39A.320 RCW and WAC 388-106-0035, the department will:
·  Pay a capital add-on rate for every fiscal year (July 1 to June 30) to any AL contractor that has a Medicaid occupancy percentage of sixty percent or greater. The Medicaid occupancy percentage will be calculated using Medicaid service days from the last six months of the calendar year preceding the applicable fiscal year divided by the product of all the AL contractors’ licensed boarding home beds irrespective of use, times calendar days for the same six-month period; and
·  Include in Medicaid service days those from Medicaid managed long-term care program, including but not limited to the Program for All-inclusive Care of the Elderly (PACE) and the Medicaid/Medicare Integration Project (MMIP).
What’s new, changed, or
Clarified: / The WAC and procedure remain the same.
ACTION: / By the July 2009 Social Service Payment System (SSPS) cutoff date, field staff must adjust rates to “AL with a capital add-on rate” for all Medicaid residents receiving assisted living services in the facilities listed in Attachment A.
Also, by the July 2009 SSPS cutoff date, field staff must adjust rates to “AL without a capital add-on rate” for all Medicaid residents currently receiving assisted living services in the facilities listed in Attachment B.
Related
REFERENCES: / RCW 74.39A.320; WAC 388-105-0035
After June 30, 2009, view all July 1, 2009 rates at:
http://adsaweb/management/orm/All_HCS_Rates.xls
ATTACHMENT(S): / Attachment A:
AL FACILITIES QUALIFIED FOR CAPITAL ADD-ON jULY 1, 2009 – jUNE 30, 2010 BECAUSE MEDICAID OCCUPANCY WAS 60% OR GREATER FOR JULY 08-DEC 08

Attachment B:
AL FACILITIES QUALIFIED FOR CAPITAL ADD-ON JULY 1, 2008 - JUNE 30, 2009 BUT NOT QUALIFIED FOR JULY 1, 2009– JUNE 30, 2010

CONTACT(S): / Joe LaChance, Home and Community Rates/Payments and Research Section
Management Services Division
(360) 725-2445