The bill, known as Substitute House Bill No. 7254, mandates the Department of Social Services (DSS) to report annually to the Appropriations and Human Services committees starting July 1, 2027, on the implementation of the Medicaid rate study as required by public act 23-186. Additionally, it requires the DSS commissioner to conduct a review of Medicaid rates every five years, beginning July 1, 2030. The commissioner is granted the authority to increase and rebase these rates using a more current Medicare base year as deemed necessary to ensure equality among providers.

The bill introduces new legal language that establishes these reporting and review requirements, while there are no deletions from current law noted in the text. The effective date of the bill is set for July 1, 2025, and it is projected to have no immediate fiscal impact on the state or municipalities, although there may be future costs associated with the review and adjustment of Medicaid provider rates.