Michigan Nursing Home Administrator (NHA) Practice Exam

The UIA contribution rate formula is based on which of the following factors?

1. Revenue generation and staffing levels

2. Facility experience and deficiency rates

3. Profit margins and employee turnover

4. Inflation rates and economic growth

The correct answer is: Facility experience and deficiency rates

The correct answer focuses on "facility experience and deficiency rates" as the determining factors for the UIA (Unemployment Insurance Agency) contribution rate formula. In this context, a facility's experience refers to its history with unemployment claims, including the number of claims made by former employees. A higher number of unemployment claims can lead to a higher contribution rate, as it indicates the facility might be having issues stabilizing employment. Deficiency rates reflect how often a facility fails to meet state health and safety regulations. If a facility has a higher deficiency rate, this may correlate with higher staff turnover or poor operational practices, which can lead to increased unemployment claims. Therefore, both facility experience in handling claims and the quality of care provided, as indicated by deficiency rates, play crucial roles in determining the UIA contributions. The other factors listed in the incorrect options, such as revenue generation, staffing levels, profit margins, employee turnover, inflation rates, and economic growth, do not directly influence the UIA contribution rate as these are more related to overall financial health or operational efficiency rather than specific unemployment claims history or regulation compliance.