Original Notice.

Exempt from preproposal statement of inquiry under RCW 34.05.310(4).

Title of Rule: Medicaid rates for contracted home and community residential care services, WAC 388-105-0005.

Purpose: To update the Medicaid payment rates for the July 1, 2001, increases enacted by the legislature in ESSB 6153.

Statutory Authority for Adoption: Section 206, chapter 7, Laws of 2001.

Statute Being Implemented: Section 206, chapter 7, Laws of 2001.

Summary: Updates Medicaid four level payment rates for contracted adult family home (AFH), adult residential care (ARC), and enhanced adult residential care (EARC). In the 2001 Appropriations Act, the legislature authorized a 2.1% vendor rate increase. Also, the legislature authorized an increase in all long-term care rates to support increasing wages for long-term care workers receiving low wages.

Name of Agency Personnel Responsible for Drafting, Implementation and Enforcement: Patricia Hague, 640 Woodland Square Loop S.E., Lacey, WA 98503, (360) 725-2447.

Name of Proponent: Department of Social and Health Services, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: To codify increases to Medicaid payment rates that were effective July 1, 2001, for contracted adult family home (AFH), adult residential care (ARC), and enhanced adult residential care (EARC). The July 1, 2001, increases enacted by the legislature in ESSB 6153 now chapter 7, Laws of 2001. The legislature authorized a 2.1% vendor rate increase and an increase in all long-term care rates to support increasing wages for long-term care workers receiving low wages. The adoption will codify the rate increases.

Proposal Changes the Following Existing Rules: Updates Medicaid four level payment rates for contracted adult family home (AFH), adult residential care (ARC), and enhanced adult residential care (EARC). In the 2001 Appropriations Act, the legislature authorized a 2.1% vendor rate increase.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The proposed revision to chapter 388-105 WAC is exempt from a small business economic impact statement under RCW 19.85.025(2) and 34.05.310 (4)(f), rules that set or adjust fees or rates pursuant to legislative standards.

RCW 34.05.328 does not apply to this rule adoption. Under RCW 34.05.328 (5)(b)(vi), rules that set or adust fees or rates pursuant to legislative standards are exempt from RCW 34.05.328. The revision to chapter 388-105 WAC is to codify increases in Medicaid payment rates for residential care facilities pursuant to ESSB 6153 now chapter 7, Laws of 2001.

Hearing Location: Blake Office Park (East) (behind Tokyo Bento Restaurant), Rose Room, 4500 10th Avenue S.E., Lacey, WA 98503, on October 9, 2001, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Fred Swenson by October 1, 2001, phone (360) 664-6097, TTY (360) 664-6178, e-mail swensfh@dshs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, Rules Coordinator, Rules and Policies Assistance Unit, P.O. Box 45850, Olympia, WA 98504-5850, fax (360) 664-6185, by October 9, 2001.

Date of Intended Adoption: No sooner than October 10, 2001.

August 22, 2001

Brian H. Lindgren, Manager

Rules and Policies Assistance Unit

Four level payment system rates for AFHs, ARCs, & EARCs
Care Levels	Non- metropolitan		Metropolitan*		King Co.
Level 1	$((42.41)) 44.94		$((41.19)) 43.68		$((41.19)) 43.68
Level 2	$((45.06)) 47.84		$((47.24)) 50.05		$((52.49)) 55.42
Level 3	$((52.26)) 55.40		$((54.64)) 57.80		$((60.65)) 63.96
Level 4	$((63.09)) 66.66		$((66.89)) 70.52		$((72.90)) 76.67

*Benton, Clark, Franklin, Island, Kitsap, Pierce, Snohomish, Spokane, Thurston, Whatcom, and Yakima Counties.

[Statutory Authority: Chapter 74.39A RCW. 01-14-056, 388-105-0005, filed 6/29/01, effective 7/30/01.]

Washington State Code Reviser's Office