Raised Bill No. 5357 proposes significant amendments to the regulations governing residential care homes in Connecticut, particularly focusing on reimbursement rates and allowable costs. The bill repeals subsection (i) of section 17b-340 and introduces new provisions that adjust operating cost components and allowable fair rent. A notable change is the increase in the allowable base salary for administrators of residential care homes with sixty beds or less to seventy-five thousand dollars, effective October 1, 2025, up from the previous thirty-seven thousand dollars. The bill also removes certain inflation adjustments and rate calculations, such as the two percent increase for rates from June 30, 2000, to June 30, 2009, and modifies the maximum allowable salary for related parties, aiming to ensure fair compensation and financial sustainability for these facilities.

Additionally, the bill extends the current rate structure for residential care facilities through June 30, 2023, allowing for specific rate adjustments based on circumstances, including compliance with medication administration regulations. It introduces provisions for capital improvements and inflation adjustments, stating that costs under $10,000 related to repairs will not be capitalized for more than five years for rate-setting purposes. The bill also establishes a minimum allowable fair rent of five dollars per day for lower-rate residential care homes and outlines a new method for calculating inflation starting July 1, 2026. Overall, the proposed changes reflect a structured approach to enhance the financial stability of residential care homes while ensuring they receive adequate state reimbursement rates.