Bill > A06272

This bill updates the payment rates for residential health care facilities, which are facilities providing long-term care and medical services. Specifically, it mandates that the non-capital component of these rates, which covers operating costs, must be updated no later than April 1, 2027, and then at least every five years thereafter, using the most current cost report data available. These updates will include a review of actual base year costs. Additionally, the bill requires that adjustments to factors like wage equalization, which account for differences in labor costs and other legitimate cost variations, also be updated by April 1, 2027, and at least every five years thereafter, based on current data. For specialized facilities and units, such as those for AIDS patients or individuals with traumatic brain injuries, the bill ensures their rates will be adjusted for inflation starting April 1, 2027, regardless of changes made to rates for other facilities. To facilitate these changes, a technical assistance workgroup, including external experts in nursing home rate setting, will be established to consult with the Department of Health. The bill also allows for a transition period for facilities to adapt to the updated rate-setting methodology, which will be determined in consultation with stakeholders.