This bill focuses on enhancing long-term care options in Iowa and includes several key provisions aimed at improving reimbursement rates and services. The Department of Health and Human Services (HHS) is tasked with establishing a new reimbursement rate structure for home health care providers that includes increased compensation for transportation costs and travel time. Additionally, HHS is required to convene a study group to review long-term living options in the state, which will include various stakeholders and aim to identify innovative approaches to provide high-quality, affordable care. The study group is expected to submit its findings and recommendations by December 15, 2025.

Furthermore, the bill mandates a 5% increase in Medicaid reimbursement rates for adult day care providers for the fiscal year 2025-2026. It also appropriates funds to HHS to expand the Iowa Return to Community program, which assists non-Medicaid-eligible consumers in transitioning back to their communities after a hospital or nursing facility stay. Lastly, the bill allocates funds for HHS to employ a statewide dementia care coordinator to enhance dementia-friendly initiatives and support services for individuals living with dementia and their caregivers.