Medicaid Sanctions funds come from sanctions imposed under Section 1919 of Title XIX of the federal Social Security Act. These funds go into the General Fund as non-lapsing dedicated credits for the Department of Health to use in accordance with the requirement of Section 1919. The following are allowable uses for the funds: the costs of relocation of residents to other facilities, maintenance of operation of a facility pending correction of deficiencies or closure, and reimbursement of resident for personal funds lost unless approval for other expenditures is obtained from the federal government.
During the 2015 General Session, the Legislature appropriated for Fiscal Year 2016, $0 from all sources for Medicaid Sanctions. This is a 0 percent change from Fiscal Year 2015 revised estimated amounts from all sources.
Funds in this line item are very infrequently used because of the limitations for the funds mentioned above. The Federal government has approved funds for the following projects: (1) in February 1998, when the Department took over operations at Rosewood Terrace Care Center due to substandard conditions, (2) project to reduce hospital readmissions, and (3) subsidization of background screening efforts.
Penalties are levied on providers who are involved in one or more of the following:
- Deficiencies that pose an immediate jeopardy to residents
- Substandard quality of care
- Failure to correct deficiencies by follow up dates
- Repeated harm to residents found in subsequent facility surveys
Under Section 63J-1-603 of the Utah Code, funds collected as a result of sanctions imposed under Section 1919 of Title XIX of the Federal Social Security Act and authorized in Section 26-18-3 of the Utah Code shall not lapse at the close of Fiscal Year 2015. The use of any nonlapsing funds is limited to the purposes outlined in Section 1919.
SB0007S01: Item 15
The Legislature intends that the Department of Health report on how expenditures from the Medicaid Sanctions line item met federal requirements which constrain its use by January 1, 2016 to the Social Services Appropriations Subcommittee.
For analysis of current budget requests and discussion of issues related to this budget click here.
During the 2013 General Session the Legislature moved $100,000 of beginning nonlapsing from Medicaid Sanctions to Family Health and Preparedness for FY 2013.
COBI contains unaudited data as presented to the Legislature by state agencies at the time of publication. For audited financial data see the State of Utah's Comprehensive Annual Financial Reports.