Bill > H1195

This bill amends existing laws to establish more frequent and transparent rate-setting processes for home health agencies and home care services in Massachusetts. The key provisions are: 1) Home health agency rates must be set at least biennially (every two years), using cost data from no more than 4 years prior, and considering all costs incurred by efficient and economical providers, including administrative expenses and a reasonable profit factor. The executive office must provide a report to the legislature detailing how the rates were analyzed and compared to the Home Health Agency Market Basket index. 2) In setting rates for homemaker and personal care homemaker services under the Executive Office of Elder Affairs, the executive office must consider changes to the state minimum wage, employer payroll tax obligations, and costs of health insurance, benefits, training, technology, and staff salaries, and must consult with stakeholders. The Secretary of Elder Affairs must also provide a report to the legislature on the rate-setting analysis. The goal of these changes is to create a more rigorous, data-driven, and transparent process for setting Medicaid reimbursement rates for essential home-based care services in Massachusetts.