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Summary: The federal government gives each state an allotment of nursing home beds that will be paid with by Medicaid. It is up to the state to determine how those bed credits are distributed among nursing homes. HB 3196 would require individuals who wish to apply for these bed credits to prove their intent to build a nursing home. Proof would be shown by the existence of a $500,000 performance bond.
Also, HB 3196 would alter the licensing process by changing it from an annual certificate to a 3-year certification. Additionally, the fee would be reduced from $250 annually to $375 every 3 years.
Analysis: HB 3196 represents a proper form of regulation. Because the Medicaid nursing home bed program is a government program, the government has a duty to guard against misuse of public funds. This legislation will help curb some practices that drive up the cost of Medicaid, and thus drive up the cost to taxpayers. Also, the provisions reducing the annual cost of fees and lengthening the period between renewals would limit government. We support this legislation.