How the nursing home support fund is set up and used

(a) There is created in the state treasury the nursing facility sustainability program special fund to be administered by the department into which shall be deposited all moneys collected under this chapter. (b) Moneys in the special fund shall consist of: (1) All revenues collected or received by the department from the nursing facility sustainability fee as required by this chapter; (2) Any interest or penalties levied in conjunction with the administration of this chapter; and (3) Any designated appropriations, federal funds, donations, gifts, or moneys from any other sources. (c) Revenue from the nursing facility sustainability fee shall be used exclusively as follows: (1) No less than eighty-eight per cent of the revenue from the nursing facility sustainability fee shall be used for one or more of the following: (A) To match federal medicaid funds, with the combined total to be used to enhance capitated rates to medicaid managed care health plans for the purpose of increasing medicaid payments to private nursing facilities to support the availability of services and ensure access to care for the medicaid managed care health plan enrollees; or (B) To match federal medicaid funds, with the combined total to enhance capitated rates for the purpose of paying quality incentives; and (2) Twelve per cent of the revenue from the nursing facility sustainability fee may be used by the department for other departmental purposes. (d) The department shall utilize federal funds derived from state long-term care facility certified expenditures to make payments to state long-term care facilities to the extent permitted by federal law. The department may receive intergovernmental transfers from the state long-term care facilities to support payments and increased capitation rates to health plans for the benefit of the state long-term care facilities. During any period in which the nursing facility sustainability fee is in effect, certified expenditures of state long-term care facilities shall not be used to make or support payments to private nursing facilities.