12/09/2021

Senate Finance passes appropriations including over $1B for healthcare workforce, relief

On Tuesday afternoon, the Ohio Senate Finance Committee reported out Sub Bill 169, which included over a billion in funding for healthcare programs and services, clearing the way for the DeWine Administration to move forward with direct provider relief grants.

The bill includes a $529 million to support home and community-based services administered by the Departments of Medicaid, Aging, Developmental Disabilities and Mental Health and Addiction Services, to be used according to Ohio’s plan approved by the Centers for Medicare and Medicaid Services (CMS). These are the federal funds made available through the American Recovery Plan (ARPA) by way of an enhanced 10% federal match for home and community-based services. The amount comes close to the proposed allocation for the first year of Ohio’s plan ($540 million), which principally funds provider relief for a wide variety of Ohio’s HCBS and waiver providers as well as some long-term workforce investments. Years two and three of the plan include system reforms like PACE expansion and adult day grants, as well as technology investments and other proposals. Ohio’s plan has yet to be approved by CMS.

Other appropriations contained in the bill are:

• $300 million for payments to nursing facilities
• $33 million for payments to residential care facilities
• $23 million for payments to hospices
• $42 million for payments to intermediate care facilities for individuals with  intellectual disabilities (ICF-IIDs)
• $100 million for Medicaid services via the Department of Developmental Disabilities
• $124 million for rural and critical access hospitals
• Nearly $11 million for nursing home strike teams

The payments to facility-based providers (nursing facilities, ICF-IIDs and hospitals) come with some strings attached, requiring funds to be spent exclusively on “direct care staff compensation, which may include staff retention bonus payments, overtime pay and shift differential payments, staff recruitment costs, and new hire incentive payments.”

The Sub bill also included appropriations for schools, policing and childcare, among other priorities. In comments to the committee prior to passage, Chairman Matt Dolan noted that the legislature operates as a “pass-through” for these federal dollars, which came from various federal sources, including the Families First  Coronavirus Response Act, the Consolidated Appropriations Act of 2021 and the American Recovery Plan Act. Many of the appropriations are tied to looming deadlines, which fostered the urgency to pass the appropriation prior to the year’s end. The House is expected to recess this week, while the Senate will complete its business either this week or next.

The investments are a welcome response to the steadfast advocacy of LeadingAge Ohio. Once signed, LeadingAge Ohio’s attention will turn back to the Administration to ensure funds are moved expediently out of the Office of Budget and Management. Questions may be directed to Susan Wallace at swallace@leadingageohio.org.