Substitute House Bill No. 5481 mandates the Department of Social Services (DSS) to provide Medicaid reimbursement for room and board costs for beneficiaries receiving care at licensed short-term hospital special hospices or hospice facilities, effective July 1, 2026. The bill requires DSS to report by January 15, 2027, to the relevant legislative committees on any cost savings associated with treating Medicaid beneficiaries in these hospice settings compared to acute care hospitals or skilled nursing facilities that are not classified as short-term hospital special hospices.

The bill introduces new legal language that specifies the types of facilities eligible for Medicaid coverage, including the terms "short-term hospital special hospice" and "hospice facility." It also includes a requirement for the DSS to assess and report on the financial implications of this coverage. The fiscal impact of the bill is contingent on the Medicaid costs associated with this coverage and the potential savings from reduced hospital stays. The bill aims to enhance the support for patients in hospice care while potentially reducing state healthcare costs.