The bill amends Section 40-8-19 of the General Laws in Chapter 40-8, titled "Medical Assistance," to revert the reimbursement methodology for Medicaid payments to nursing facilities from a price-based system back to a cost-based system. This change aims to ensure that the rates paid to nursing facilities adequately cover the costs incurred by efficiently operated facilities. The executive office of health and human services (EOHHS) is tasked with establishing an incentive-based mechanism to reward facilities that meet specific performance, quality, or staffing benchmarks.

Additionally, the bill mandates that the executive office conduct a comprehensive re-array of Medicaid rates every three years, beginning October 1, 2025, using data from the most recent finalized cost reports to ensure reimbursement reflects current direct and indirect care costs, patient acuity levels, and Medicaid occupancy rates.

The bill specifies that commencing on October 1, 2021, and continuing until October 1, 2025, eighty percent (80%) of any rate increase resulting from the application of the inflation index shall be dedicated to increasing compensation for all eligible direct-care workers. The act is set to take effect upon passage.

Statutes affected:
5144: 40-8-19