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Office of Program Policy Analysis and Government Accountability

Legislative Options for County Share of Medical Nursing Home Costs, Report No. 03-11, February 2003
Full report in PDF format

The Legislature faces two issues in funding Medicaid nursing home care:
  • apportioning the state and counties’ share ($53.3 million) of next year’s projected cost increase and
  • replacing the current cumbersome and costly billing process with a feasible alternative.

We identified three options along with their advantages and disadvantages for county funding of Medicaid nursing home care:

  • setting the county contribution at 1.5%, which would require more state general revenue;
  • equally splitting the projected cost increase between state and counties, which would require less additional state general revenue but would impose an  increase of almost 80% on counties; and
  • fixing the county contribution rate at 10%, which would raise $227 million for Fiscal Year 2003-04.  This could create fiscal problems for some counties, but would reduce the need for state general revenue by $140.9 million.
Implementing any of these options would require statutory changes.

There are three alternatives to the current billing process that would reduce disputes and save costs associated with resolving disputes about residency but require more work to develop.

Which Government Program Summaries contain related information?

Medicaid Health Care Services
Agency for Health Care

What other OPPAGA-related materials are available?

  • Report No. 01-10 Justification Review: Growth in Medicaid Prescription Drug Costs Indicates Additional Prudent Purchasing Practices Are Needed, published in February 2001.

Copies of this report in print or alternate accessible format may be obtained by telephone (850/488-0021), by FAX (850/487-9213), in person, or by mail (OPPAGA Report Production, Claude Pepper Building, Room 312, 111 W. Madison St., Tallahassee, FL 32399-1475).
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