Senate Bill No. 805 requires nursing homes to allocate at least eighty percent of their revenues from Medicaid, Medicare, and other payment sources towards direct patient care, effective July 1, 2025. The bill amends section 17b-340d of the general statutes by repealing subsection (a) and replacing it with new provisions that mandate the Commissioner of Social Services to implement an acuity-based methodology for Medicaid reimbursement. This includes establishing Medicaid rates based on cost data and quality metrics, with adjustments to these rates based on performance starting July 1, 2022. The bill also defines "direct care" and outlines the associated costs that nursing homes must cover, such as salaries, benefits, and supplies for nursing personnel.

Furthermore, the legislation introduces new provisions regarding the rebasing of costs for nursing facilities, specifying that costs will be rebased every two to four years without inflation adjustments during rebasing years. It prohibits inflation-based rate increases for the fiscal years ending June 30, 2022, and June 30, 2023, and limits increases for the subsequent two fiscal years. The bill deletes previous sections related to these provisions and updates the numbering of subsequent sections accordingly. Overall, SB805 aims to enhance the quality of care in nursing homes by ensuring a significant portion of their funding is directed towards direct patient care and by implementing a structured reimbursement methodology based on quality performance.