DHS briefs committee on assisted-living rate review and federal relief for facilities

Mark White, chief staff and legal legislative affairs for the Department of Human Services, updated the Senate Children and Youth Committee on assisted-living facilities and related funding.

White said DHS has met multiple times with the Arkansas Residential and Assisted Living Association (ARALA) to identify costs not reflected in the current Medicaid rate and that ARALA is collecting updated cost information for DHS review. He said DHS and DFA secured $6.4 million in CARES funding for assisted-living/residential providers; the approved distribution was roughly $7,700 per licensed occupied Medicaid bed and 41 facilities requested and received payments. White provided summary payment figures: average payment ~$155,314.63; largest payment about $418,000; smallest about $35,000. The agency distributed CARES payments by Dec. 29, as described in the briefing.

White also described a proposed American Rescue Plan Act (ARPA) initiative to expand home- and community-based services (HCBS). The plan, developed with multiple provider groups, would distribute approximately $150,000,000 to HCBS providers statewide to help expand services and address staffing shortages; White said the plan has preliminary CMS approval and is awaiting final sign-off.

Senator Hammer cited a circulated list that claimed 12 assisted-living closures and asked where affected Medicaid patients were relocated. White responded that the circulated list mixes assisted-living and residential care facilities, stretches across multiple years, and that his records show five definitive closures based on health-services permit data; he said affected residents moved to other assisted-living facilities, to nursing homes where clinically appropriate, or returned home with family in many cases. Lawmakers pressed DHS about whether updated cost surveys will capture widespread facility needs; White said ARALA is gathering cost data from members and DHS will evaluate cost items for potential rate adjustments.

What happens next: DHS said it will continue reviewing ARALA’s cost submissions and report back to the committee once the agency has completed its analysis and any recommended rate changes.