Substitute House Bill No. 7254 mandates that the Department of Social Services (DSS) report annually to the Appropriations and Human Services committees starting July 1, 2027, regarding the implementation of the Medicaid rate study as required by public act 23-186. Additionally, the bill stipulates that the DSS commissioner must 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 necessary to ensure equality among providers.

The bill introduces new legal language that establishes these reporting and review requirements, effective July 1, 2025. There are no deletions from current law noted in the text. The fiscal impact of the bill is expected to be minimal, as the DSS has the expertise to fulfill the reporting requirements without incurring additional costs. However, there may be future costs associated with the review and potential adjustment of Medicaid provider rates, depending on the extent of the changes made by the commissioner.