The proposed bill mandates the Health Care Authority to conduct cost studies every three years for each type of health care provider that receives Medicaid reimbursement. These studies aim to determine the costs associated with providing health care services and will include recommendations for adequate reimbursement rates. The factors considered in these studies will include the costs necessary to offer competitive compensation to health care providers, as well as recent and projected changes in costs due to inflation and rising wages.

Additionally, when the Health Care Authority submits its budget request to the legislature, it must include the most recent cost study for each type of Medicaid-reimbursed health care provider. The bill allows flexibility in the timing of these studies, stating that the authority is not required to conduct studies for all provider types in the same year, as long as each type is studied at least once every three years. The bill also defines "Medicaid" as the federal-state program administered by the authority under specific titles of the federal Social Security Act.