Accession Number:

ADA193364

Title:

Medicaid: Little Effect from Legislative Change Permitting Asset Re-evaluation after Sales.

Descriptive Note:

Corporate Author:

GENERAL ACCOUNTING OFFICE WASHINGTON DC HUMAN RESOURCES DIV

Personal Author(s):

Report Date:

1988-04-01

Pagination or Media Count:

7.0

Abstract:

Section 9509 of the Consolidated Omnibus Budget Reconciliation Act of 1985 COBRA, Public Law 99-272, Apr. 7, 1986 revised the Medicaid statute to permit the upward re-evaluation of assets when a new owner purchases a nursing home. Such re-evaluation can result in increased Medicaid payments to nursing homes for capital costs - primarily depreciation and interest expense on loans taken for the acquisition. Section 9509 required us to study the effects of the re-evaluation-of-assets change on the Medicaid program. The amendment made by section 9509 has to date had animal effect on Medicaid. As of October 1987, only three states - Alabama, Alaska, and Virginia - had changed their Medicaid nursing home payment methods to permit re-evaluation of assets after a sale. The effect on Medicaid costs is expected to be small in all three states because relatively few nursing homes are expected to have changes of ownership. If additional states should change their re-evaluation policies, the effect on Medicaid costs could become more substantial. However, the state and federal officials responsible for Medicaid nursing home matters whom we contacted told us that they expect few, it any, other states to change their re-evaluation-of-assets policies.

Subject Categories:

  • Administration and Management
  • Medicine and Medical Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE