This bill establishes a Medicaid methodology working group within the Department of Health and Human Services (DHHS) to study and make recommendations regarding nursing home reimbursement rates. The working group will consist of various appointed members, including representatives from the House and Senate, the DHHS commissioner, and members from relevant associations, as well as a certified public accountant specializing in nursing home cost reporting. The group is tasked with addressing issues such as access to nursing home care, barriers to hospital discharge, the adequacy of reimbursement rates in relation to resident care needs, and the overall solvency of the nursing home sector. The commissioner of DHHS is required to submit proposed changes to state law or regulations by December 31, 2026, if modifications to the nursing home Medicaid rate methodology are deemed necessary.

Additionally, the bill appropriates $5 million for the fiscal year ending June 30, 2026, to provide a one-time general fund payment to licensed nursing facilities that serve Medicaid clients and have a new daily reimbursement rate below 95% of their previous rate as of July 1, 2025. The DHHS will have sole discretion over the distribution of these funds. The bill does not authorize new positions or provide ongoing funding, and it will take effect upon passage.