The bill proposes to delay the rebasing of Medicaid nursing home payment rates until fiscal year 2028, addressing the financial difficulties faced by nursing home providers and the need for budget predictability. It acknowledges the current law's requirement for periodic rebasing to reflect updated cost data but postpones the scheduled rebase for fiscal year 2027 due to a temporary freeze on reimbursement rates at fiscal year 2025 levels for fiscal years 2026 and 2027. The next rebase will utilize cost reports from calendar year 2024, ensuring that Medicaid beneficiaries continue to receive quality long-term care.

Additionally, the bill amends existing law to stipulate that the direct and indirect care components must be rebased in even-numbered years, starting with rates from July 1, 2016. It establishes that for fiscal years 2026 and 2027, the weighted average of these components will remain at fiscal year 2025 levels, facilitated by a required rate add-on. The legislation also includes a provision for the act's validity, ensuring that if any part is deemed invalid, the remainder will still be effective. The bill is considered essential for the immediate preservation of public peace, health, or safety and will take effect immediately upon passage.

Statutes affected:
Original Bill: 74.46.561
Substitute Bill: 74.46.561