The bill, 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 necessary to ensure equality among providers.

The effective date of this legislation is July 1, 2025. The bill does not have any immediate fiscal impact, as the DSS has the necessary expertise to fulfill the reporting requirements. 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 DSS.