Bill > S0466

This bill allows the Executive Office of Health and Human Services (EOHHS) to review and modify the methodology for Medicaid payments to nursing facilities, specifically reverting from a price-based to a cost-based reimbursement system. The bill introduces several key changes, including developing a more comprehensive rate-setting approach that considers patient acuity, direct and indirect care costs, and Medicaid occupancy rates. It mandates a comprehensive rate review every three years starting in October 2025 and establishes an incentive-based mechanism to reward facilities that meet certain performance, quality, or staffing benchmarks. The bill also continues a requirement that 80% of rate increases be dedicated to increasing compensation for direct-care workers, which includes various healthcare and support staff roles like registered nurses, certified nursing assistants, and dietary staff. Additionally, the bill requires nursing facilities to submit annual certifications detailing how they have used rate increases to compensate workers, with potential financial penalties for non-compliance. The changes aim to create a more equitable and responsive reimbursement system for nursing facilities while ensuring that additional funding is primarily used to support frontline healthcare workers. The bill will take effect immediately upon passage.

Health and Social Services

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