The bill mandates the Health Care Authority to conduct cost studies every three years for each type of health care provider reimbursed by Medicaid. 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 competitive compensation for health care providers and adjustments for 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 provider. The bill allows flexibility in the timing of these studies, stating that the authority is not required to conduct them for all providers in the same year, as long as each provider is studied at least once every three years. The definition of "Medicaid" is clarified as the federal-state program administered by the authority under specific titles of the federal Social Security Act.