Federal Nursing Home Administrator Practice Exam

What amendment addressed the reimbursement of nursing homes by states for their actual costs?

1. Smith Amendment

2. Hatch Amendment

3. Johnson Amendment

4. Davis Amendment

The correct answer is: Hatch Amendment

The Hatch Amendment is the correct answer because it is specifically associated with the regulation of Medicaid reimbursement for nursing homes, focusing on ensuring that states can reimburse nursing homes based on their actual costs. This amendment was designed to address the financial viability of nursing homes by ensuring they receive adequate funding to provide care to residents while complying with Medicaid requirements. This framework helps maintain a standard of care by aligning reimbursement rates with the actual costs incurred by nursing facilities, thus enabling them to meet operational demands and enhance the quality of care provided to residents. The intention behind the Hatch Amendment was to support the sustainability of nursing homes, which is essential for serving the aging population effectively. The other options do not pertain to nursing home reimbursement and do not hold relevance in this context. For example, the Smith Amendment and the Johnson Amendment may refer to other legislative acts that do not focus directly on nursing home reimbursement policies, while the Davis Amendment is also not linked to the financial regulations of nursing homes. By understanding the specific implications of the Hatch Amendment, it becomes clear why this answer stands out in the context of Medicaid reimbursement practices.