Substitute House Bill No. 5481 establishes a pilot program aimed at treating certain Medicaid patients with advanced illnesses at a specially licensed short-term hospital hospice. The program, which is set to be developed by the Commissioner of Social Services, will focus on high-acuity individuals who qualify for hospice care but cannot be safely managed at home or in skilled nursing facilities. The bill mandates that the short-term hospital special hospice must operate within the scope of its license and obtain any necessary additional licenses for care provision. A report detailing the program's development, potential savings, and recommendations for funding or statutory changes is required to be submitted to relevant legislative committees by January 15, 2027.

The implementation of the pilot program is to occur within funds specifically appropriated for this purpose, with a deadline set for December 30, 2027. The bill does not include any deletions from current law but introduces new legal language to facilitate the establishment and operation of this pilot program. The effective date for the provisions of this act is July 1, 2026.