An Act To Ensure Appropriate Reimbursement of Rising Energy Costs for Long-term Care Facilities
Maine Legislature, Session 122, LD 2000
Committee: Health and Human Services
Sponsors: RICHARDSON, PINGREE, MAYO

Legislative Document 
No. 2000 
H.P.1402 
House of Representatives, February 7,2006 
An Act To Ensure Appropriate Reimbursement of Rising Energy 
Costs for Long-term Care Facilities 
(EMERGENCY) 
Approved for introduction by a majority of the Legislative Council pursuant to Joint Rule 
203. 
Reference to the Committee on Health and Human Services suggested and ordered printed. 
Presented by Speaker RICHARDSON of Brunswick. 
1J1~ 
1J?17l~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representative: PINGREE of North Haven, Senator: MAYO of Sagadahoc. 
PrinteJ on recycleJ paper 
. Emergency preamble. Whereas, acts of the Legislature do not become effective 
until 90 days after adjournment unless enacted as emergencies; and 
Whereas, long-term care facilities face rapidly rising energy costs for heating oil, 
electricity, natural gas and other energy sources due to overall market conditions and 
catastrophic hurricane damage to refineries and related infrastructure, and these increases 
are anticipated to exceed 40% over prior year costs; and 
Whereas, such energy costs are currently subject to a routine cost cap limitation 
under applicable MaineCare principles of reimbursement, and these long-term care 
facilities require appropriate relief from these limitations in order to provide for resident 
safety and to obtain appropriate reimbursement; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. Rules governing reimbursement of energy costs. The Department of 
Health and Human Services shaIl amend its rules governing principles of reimbursement 
for nursing facilities and residential care facilities to require recognition and proper 
reimbursement of rising energy costs. For facility fiscal years ending between October I, 
2005 and September 30, 2006, and for each of the next 2 facility fiscal years, these 
energy costs, whether in the form of fuel oil, electricity, natural gas or another energy 
source, must be treated as fixed costs that are fully reimbursed and are not subject to 
routine cost caps or other types of limitations. For private nonmedical institutions that do 
not receive MaineCare reimbursement as residential care facilities but instead receive a 
predetermined room and board rate as part of their MaineCare private nonmedical 
institution reimbursement, the room and board rate must be adjusted upward over the next 
fiscal years to provide sufficient reimbursement to cover rapidly rising energy costs. 
Emergency clause. In view of the emergency cited in the preamble, this Act takes 
effect when approved. 
SUMMARY 
This bill requires the Department of Health and Human Services to amend its 
principles of reimbursement for long-term care facilities to provide proper recognition of 
rapidly rising energy costs. The changes would affect each of the next 3 fiscal years for 
these facilities. Under the bill, these costs will be reclassified as fixed costs that are fuIly 
reimbursed and will no longer be subject to routine cost caps. 
For those private 
nonmedical institutions that receive predetermined room and board rates, these rates must 
be adjusted upward over the next 3 fiscal years to provide sufficient reimbursement to 
cover rapidly rising energy costs. 
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