The bill amends Chapter 40-8.9 of the General Laws regarding "Medical Assistance Long-Term Care Service and Finance Reform" by introducing a new section that mandates the executive office of health and human services (EOHHS) to apply an automatic cost-of-living adjustment (COLA) to Medicaid reimbursement rates for assisted living services. This adjustment will begin on July 1, 2026, and will occur annually thereafter. The COLA will be equal to the percentage increase, if any, in the Consumer Price Index for All Urban Consumers (CPI-U) for the Northeast Region, as published by the United States Bureau of Labor Statistics.

The bill specifies that the COLA will be applied uniformly across all Medicaid-assisted living rate tiers, including acuity-based or service-level rate categories. The COLA adjustment will be applied automatically and will not be subject to annual appropriation approval, rate rebasing, or discretionary adjustment by the executive branch, except as otherwise expressly provided by law. Additionally, the bill clarifies that nothing in this section shall prohibit the general assembly from authorizing additional rate increases or rate restructuring beyond the COLA provided. The EOHHS is tasked with promulgating any rules and regulations necessary to implement this section, including alignment with federal Medicaid requirements and state plan amendments, if required. The act will take effect upon passage and will apply to Medicaid assisted living rates starting July 1, 2026.