II

105TH CONGRESS

2D SESSION S. 2061

To amend title XIX of the Social Security Act to prohibit transfers or

discharges of residents of nursing facilities.

IN THE SENATE OF THE UNITED STATES

MAY 11, 1998

Mr. GRAHAM (for himself, Mr. CHAFEE, Mr. JOHNSON, Mr. HARKIN, and Mr.

GRASSLEY) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title XIX of the Social Security Act to prohibit

transfers or discharges of residents of nursing facilities.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. RESTRICTIONS ON TRANSFERS OR DIS4 CHARGES OF NURSING FACILITY RESIDENTS

5 UNDER THE MEDICAID PROGRAM.

6 (a) IN GENERAL.—Section 1919(d) of the Social Se7 curity Act (42 U.S.C. 1396r(d)) is amended—

8 (1) by redesignating paragraph (4) as para9 graph (5); and
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1 (2) by inserting after paragraph (3), the follow2 ing:

3 ‘‘(4) RESTRICTIONS ON TRANSFERS OR DIS4 CHARGES OF RESIDENTS.—

5 ‘‘(A) IN GENERAL.—A nursing facility

6 shall not—

7 ‘‘(i) transfer or discharge (or seek to

8 transfer or discharge) from the facility any

9 resident on the basis of the resident’s eligi10 bility for medical assistance for services

11 provided by the facility (and for having

12 payment made) under the State plan under

13 this title; and

14 ‘‘(ii) if the facility ceases or will cease

15 to be a participating provider under the

16 State plan under this title, transfer or dis17 charge (or seek to transfer or discharge)

18 from the facility any resident on the basis

19 of the resident’s eligibility for medical as20 sistance under the State plan with respect

21 to such services.

22 ‘‘(B) CONTINUATION OF PAYMENTS AND

23 OVERSIGHT AUTHORITY.—Notwithstanding any

24 other provision of this title, a facility described

25 in subparagraph (A)(ii) shall be deemed to be
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1 a participating provider under the State plan

2 under this title with respect to the residents de3 termined to be eligible for medical assistance

4 under the State plan who remain in the facility

5 after the facility otherwise ceases to be a par6 ticipating provider under the State plan for

7 purposes of—

8 ‘‘(i) receiving payments under the

9 State plan for services provided to such

10 residents; and

11 ‘‘(ii) maintaining compliance with all

12 applicable requirements of this title.

13 ‘‘(C) NEW RESIDENTS.—This paragraph

14 shall not apply to or affect a facility’s refusal

15 to accept any individual as a new resident of

16 the facility.’’.

17 (b) CLARIFICATION REGARDING TRANSFERS OR DIS18 CHARGES FOR FAILURE TO PAY.—Section 1919(c)(2)(A)

19 of such Act (42 U.S.C. 1396r(c)(2)(A)) is amended, in

20 the matter following clause (vi), by inserting before the

21 period the following: ‘‘, and in no case shall the withdrawal

22 or termination of the facility as a participating provider

23 under the State plan under this title be construed as a

24 failure to pay on the part of a resident who has been deter-
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1 mined to be eligible for medical assistance for services pro2 vided by the facility under the State plan’’.

3 (c) EFFECTIVE DATE.—The amendments made by

4 this section shall apply to transfers or discharges occur5 ring on or after the date of enactment of this section.

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