Date of Adoption: October 14, 2002.

     Purpose: To implement a $2.7 million reduction of funding for fiscal year 2003 for the assisted living facility (ALF) capital add-on rate. To increase the daily payment rates for boarding homes and adult family homes by the vendor rate increase of 1.5%.

     This is the second emergency adoption of the rules. Under RCW 34.05.350(2) a second emergency adoption of the same rules requires: "...the agency has filed notice of its intent to adopt the rule as a permanent rule, and is actively undertaking the appropriate procedures to adopt the rule as a permanent rule." On September 3, 2002, AASA filed a CR- 102 proposed rule-making notice to adopt the rules permanently, and the public hearing was held October 8, 2002. See WSR 02-18-099. First emergency rules expire on October 26, 2002. The effective date of the permanent rules will fall after October 28, 2002.

     Citation of Existing Rules Affected by this Order: Amending WAC 388-105-0005.

     Statutory Authority for Adoption: Chapter 371, Laws of 2002.

     Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

     Reasons for this Finding: In 2001-03 budget (2002) supp, the legislature reduced the amount of available funding for the ALF rate add-on for capital improvements and/or new construction. Failure to implement the reduction would result in a larger reduction later making even more ALFs ineligible for the rate add-on. Regular adoption would delay by four months or more the reduction. Delay threatens the health, safety and general welfare of all ALF residents because the fewer ALFs that receive the rate add-on results in more ALFs diverting funds from direct care to pay for capital improvements.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 3, Amended 1, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 3, Amended 1, Repealed 0.
     Effective Date of Rule: October 26, 2002.

October 9, 2002

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	$((44.94)) 46.06		$((43.68)) 44.79		$((43.68)) 44.79
Level 2	$((47.84)) 49.28		$((50.05)) 51.52		$((55.42)) 56.97
Level 3	$((55.40)) 57.07		$((57.80)) 59.51		$((63.96)) 65.76
Level 4	$((66.66)) 68.15		$((70.52)) 72.07		$((76.67)) 78.31

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

[Statutory Authority: 2001 c 7 § 206. 01-21-077, § 388-105-0005, filed 10/18/01, effective 11/18/01. Statutory Authority: Chapter 74.39A RCW. 01-14-056, § 388-105-0005, filed 6/29/01, effective 7/30/01.]

COPES ALF Daily Payment Rates w/o Capital Add-on Rate
Care Levels	Non- metropolitan		Metropolitan*		King Co.
Level 1	$ 54.84		$ 56.35		$ 61.03
Level 2	$ 61.14		$ 62.92		$ 68.52
Level 3	$ 67.54		$ 69.90		$ 76.46

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

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     (a) Meets the construction requirements of WAC 388-110-140; and

     (b) Has a Medicaid occupancy percentage that equals or exceeds the applicable bi-yearly Medicaid minimum occupancy percentage set in accordance with subsection (3) of this section.

     (2) The department will determine an ALF's Medicaid occupancy percentage by dividing its Medicaid resident days by the product of all its licensed boarding home beds irrespective of use times calendar days for the six-month period beginning one year prior to the percentage effective date.

     (3)(a) To set the bi-yearly Medicaid minimum occupancy percentage, the department will:

     (i) Determine the estimated total budgeted funds for capital add-on rates for the six-month period;

     (ii) Rank from highest to lowest the individual ALF occupancy percentages determined in accordance with subsection (2) of this section;

     (iii) Assign, beginning with the highest ALF Medicaid occupancy percentage, the estimated expenditure needed to pay the capital add-on rate to each facility for the six-month period;

     (iv) Identify the ALF Medicaid occupancy percentage at which the estimated total budgeted funds determined under subsection (3)(a)(i) of this section would be expended; and

     (v) Set that Medicaid occupancy percentage as the bi-yearly Medicaid minimum occupancy percentage.

     (b) The bi-yearly Medicaid minimum occupancy percentage will be set every January 1 and July 1.

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COPES ALF Add-on Rate July 1, 2002
Non- metropolitan		Metropolitan*		King Co.
$ 4.68		$ 4.39		$ 4.84

COPES ALF Daily Payment Rates with a Capital Add-on Rate
Care Levels	Non- metropolitan		Metropolitan*		King Co.
Level 1	$ 59.52		$ 60.74		$ 65.87
Level 2	$ 65.82		$ 67.31		$ 73.36
Level 3	$ 72.22		$ 74.29		$ 81.30

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

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