‘‘(I) the facility’s voluntary with-
drawal from participation is not an
acceptable basis for the transfer or
discharge of residents of the facility
who were residing in the facility on
the day before the effective date of the
withdrawal (including those residents
who were not entitled to medical as-
sistance as of such day);
‘‘(II) the provisions of this sec-
tion continue to apply to such resi-
dents until the date of their discharge
from the facility; and
‘‘(III) in the case of each individ-
ual who begins residence in the facil-
ity after the effective date of such
withdrawal, the facility shall provide
notice orally and in a prominent man-
ner in writing on a separate page at
the time the individual begins resi-
dence of the information described in
clause (ii) and shall obtain from each
such individual at such time an ac-
knowledgment of receipt of such infor-
mation that is in writing, signed by
the individual, and separate from
other documents signed by such indi-
vidual.
Nothing in this subparagraph shall be con-
strued as affecting any requirement of a
participation agreement that a nursing fa-
cility provide advance notice to the State
or the Secretary, or both, of its intention
to terminate the agreement.
‘‘(ii) INFORMATION
FOR
NEW
RESI-
DENTS.—The information described in this
clause for a resident is the following:
‘‘(I) The facility is not participat-
ing in the program under this title
with respect to that resident.
‘‘(II) The facility may transfer or
discharge the resident from the facil-
ity at such time as the resident is un-
able to pay the charges of the facility,
even though the resident may have be-
come eligible for medical assistance
for nursing facility services under this
title.
‘‘(iii) CONTINUATION
OF
PAYMENTS
AND
OVERSIGHT
AUTHORITY.—Notwith-
standing any other provision of this title,
with respect to the residents described in
clause (i)(I), a participation agreement of
a facility described in clause (i) is deemed
to continue in effect under such plan after
the effective date of the facility’s voluntary
withdrawal from participation under the
State plan for purposes of—
‘‘(I) receiving payments under
the State plan for nursing facility
services provided to such residents;
‘‘(II) 
maintaining 
compliance
with all applicable requirements of
this title; and
‘‘(III) continuing to apply the
survey, certification, and enforcement
authority provided under subsections
(g) and (h) (including involuntary ter-
mination of a participation agreement
deemed continued under this clause).
‘‘(iv) NO APPLICATION TO NEW RESI-
DENTS.—This paragraph (other than sub-
clause (III) of clause (i)) shall not apply to
an individual who begins residence in a fa-
cility on or after the effective date of the
withdrawal from participation under this
subparagraph.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) applies to voluntary withdrawals from par-
ticipation occurring on or after the date of the enactment
of this Act.
Union Calendar No. 27
106TH CONGRESS
1ST SESSION
H. R. 540
[Report No. 106–44]
A BILL
To amend title XIX of the Social Security Act to
prohibit transfers or discharges of residents of
nursing facilities as a result of a voluntary with-
drawal from participation in the Medicaid Pro-
gram.
MARCH 8, 1999
Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed