KHI News Service

Nursing home tax signed into law

Most of the state's 346 facilities expected to benefit

By KHI NEWS SERVICE | June 29, 2010

A new bed tax for nursing homes was signed into law Tuesday by Gov. Mark Parkinson.

Most of the state's 346 nursing facilities are expected to benefit.

The new law calls for using a tax on licensed nursing home beds to generate about $30 million which, in turn, will be used to draw down $56 million in additional federal Medicaid funding.

The $86 million, assuming the initiative wins federal approval, would be returned to the nursing homes based on the number of Medicaid residents in their care. The more Medicaid residents a home has the more money it will receive.

Only about 20 nursing homes stand to lose money due to the new tax, according to Kansas Department on Aging projections.

The governor signed House Bill 2320 into law during a ceremony at Wheatland Nursing and Rehab Center in Russell.

Kansas Secretary on Aging Marty Kennedy added a blog posting to the governor's website describing some of the expected benefits of the provider tax.