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, establish rates based on cost data, and ensure compliance with quality metrics reporting. The bill introduces a phased approach to rate adjustments based on performance metrics, with individualized reports for nursing homes starting July 1, 2023. It also categorizes allowable costs into five components, setting specific maximums for each, and emphasizes the mandatory nature of compliance with quality metrics by changing "will be required to" to "shall."

Furthermore, the bill outlines changes to the rate-setting process, stating 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 such increases for the subsequent two fiscal years. The bill deletes previous provisions regarding allowable patient days and modifies the numbering of subsequent sections. Overall, SB 805 aims to enhance the quality of care in nursing homes by ensuring a significant portion of funding is directed towards direct care services, while also promoting financial accountability through adjustments for facilities with lower indirect and administrative costs.