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calendar year costs must be adjusted for inflation by a twenty-four 1 month consumer price index, based on the most recently available 2 monthly index for all urban consumers, as published by the bureau of 3 labor statistics. It is also the intent of the legislature that, 4 starting in fiscal year 2022, a facility-specific rate add-on equal 5 to the inflation adjustment that facilities received solely in fiscal 6 year 2021, must be added to the rate. 7 (c) To determine the necessity of regular inflationary 8 adjustments to the nursing facility rates, by December 1, 2020, the 9 department shall provide the appropriate policy and fiscal committees 10 of the legislature with a report that provides a review of rates paid 11 in 2017, 2018, and 2019 in comparison to costs incurred by nursing 12 facilities. 13 (9) The direct care component provided in subsection (3) of this 14 section is subject to the reconciliation and settlement process 15 provided in RCW 74.46.022(6). Beginning July 1, 2016, pursuant to 16 rules established by the department, funds that are received through 17 the reconciliation and settlement process provided in RCW 18 74.46.022(6) must be used for technical assistance, specialized 19 training, or an increase to the quality enhancement established in 20 subsection (6) of this section. The legislature intends to review the 21 utility of maintaining the reconciliation and settlement process 22 under a price-based payment methodology, and may discontinue the 23 reconciliation and settlement process after the 2017-2019 fiscal 24 biennium. 25 (10) Compared to the rate in effect June 30, 2016, including all 26 cost components and rate add-ons, no facility may receive a rate 27 reduction of more than one percent on July 1, 2016, more than two 28 percent on July 1, 2017, or more than five percent on July 1, 2018. 29 To ensure that the appropriation for nursing homes remains cost 30 neutral, the department is authorized to cap the rate increase for 31 facilities in fiscal years 2017, 2018, and 2019. 32 NEW SECTION. Sec. 1904. 2021 c 334 s 984 is repealed. 33 NEW SECTION. Sec. 1905. If any provision of this act or its 34 application to any person or circumstance is held invalid, the 35 remainder of the act or the application of the provision to other 36 persons or circumstances is not affected. 37 p. 1396 ESSB 5187.SL