Termination

(a) Collection of the nursing facility sustainability fee under section 346F-5 shall be discontinued if: (1) The waiver in section 346F-7 or the enhanced capitation rates in section 346F-10 have not been approved by the Centers for Medicare and Medicaid Services; (2) The department reduces reimbursement rates for private nursing facility services to medicaid patients with the intention of using the sustainability funds to supplant the planned or permanent reduction in rates; (3) The department or any other state agency uses the money in the special fund for any use other than the uses permitted pursuant to this chapter; or (4) Federal financial participation to match the nursing facility sustainability fee becomes unavailable under federal law, in which case, the department shall terminate the collection of the fee beginning on the effective date of the federal statutory, regulatory, or interpretive change. (b) If the nursing facility sustainability fee is discontinued, any money remaining in the nursing facility sustainability program special fund shall be distributed to the nursing facilities within six months of the date of discontinuation in the same proportions as received from the nursing facilities.