Sec. 1. 22 MRSA §1708, sub-§3, ¶¶A-2 to A-6 are enacted to read:

A-2.__Starting with the fiscal year beginning on or after October 1, 1999, use data from the year 1997 as the basis for calculating reimbursement rates and cost components required under this subsection;

A-3.__Calculate the case mix of a nursing facility on the basis of the facility's total population, regardless of source of payment;

A-4.__Treat the following nursing facility costs as direct costs:

(1)__Costs attributable to the position of Director of Nursing;

(2)__Costs of medical supplies and consultants, including, but not limited to, dietary consultants, and social services and pharmacy costs;

(3)__Salaries paid to social services personnel; and

(4)__Fringe benefits;

A-5.__Recognize as an allowable nursing facility fixed cost the cost to the nursing facility of its allocated share of debt service, including principal, interest and amortization of any issuance costs and discount, incurred pursuant to section 1813-A, or the cost to the nursing facility of its allocated share of outstanding debt incurred pursuant to section 1813-B;

A-6.__Establish, on an annual basis, the maximum amount of reimbursable direct and indirect costs for facilities with more than 60 beds and facilities with 60 beds or fewer.__The maximum amount of reimbursable direct and indirect costs must be greater for facilities with 60 or fewer beds.__In determining the maximum reimbursable direct and indirect costs, the department shall use the most current year-end data;

Sec. 2. 22 MRSA §1812-H, as amended by PL 1993, c. 410, Pt. FF, §§4 to 7, is repealed.

Sec. 3. 22 MRSA §1812-I is enacted to read:

§1812-I.__Medicaid Automation Grant Fund