Assessment Basis for Fiscal Year 2016-2017

The following nursing facilities will continue to be exempt from the Assessment Program in FY 2016-2017:

(1) State owned and operated nursing facilities.

(2) Veteran's Administration nursing facilities.

(3) Nursing facilities that have not been licensed and operated by the current or previous owner for the full calendar quarter prior to the calendar quarter in which an assessment is collected.

(4) Nursing facilities that provide nursing facility services free of charge to all residents.

The Department will assess nonexempt nursing facilities at two rates. One rate will apply to four categories of nursing facilities: county nursing facilities; nursing facilities that have 44 or fewer licensed beds; qualified nursing facilities affiliated with Continuing Care Retirement Communities (CCRC) (see 40 Pa.B. 7297 (December 18, 2010)); and nursing facilities with an MA occupancy rate of at least 94% based on the four consecutive assessment quarters beginning April 1, 2015, and ending March 31, 2016, for each nursing facility as of April 22, 2016. The other rate will apply to all other nonexempt facilities, including nursing facilities that began participation in a CCRC on or after July 1, 2010. Using the applicable rate, the Department will calculate an annual assessment amount for each nonexempt facility by multiplying its assessment rate by the facility's historical non-Medicare resident day for the four consecutive assessment quarters beginning April 1, 2015, and ending March 31, 2016, and collect the annual assessment amount in four equal quarterly installments.

Although the Department will maintain the same basic rate structure for FY 2016-2017, the Department is increasing the assessment rate for nonexempt nursing facilities in the higher rate tier from the rates in FY 2016-2017. For FY 2016-2017, the assessment rates for nonexempt nursing facilities will be as follows:

(1) For county nursing facilities, for nursing facilities that have 44 or fewer licensed beds, for qualified CCRC nursing facilities and nursing facilities with an MA occupancy rate of at least 94% based on the four consecutive
assessment quarters beginning April 1, 2015, and ending March 31, 2016, for each nursing facility as of April 22, 2016, the assessment rate will be $8.01 per historical non-Medicare resident day.

(2) For all other nonexempt nursing facilities, the assessment rate will be $32.10 per historical non-Medicare resident day.
Assessment payments are due the last day of the assessment quarter or 30 days after publication of this second notice, whichever is later.