The bill proposes to delay the rebasing of Medicaid nursing home payment rates until fiscal year 2028, as outlined in amendments to RCW 74.46.561. It aims to maintain stability in Medicaid reimbursement rates by implementing a temporary freeze at fiscal year 2025 levels for fiscal years 2026 and 2027. The scheduled rebase for fiscal year 2027 will be postponed to fiscal year 2028, allowing for a more accurate assessment of industry costs and ensuring budget stability. The bill also introduces new legal language that specifies the rebase for fiscal year 2028 will utilize cost reports from calendar year 2024.

Additionally, the bill includes amendments to the existing payment structure, such as adjustments to direct and indirect care components and the establishment of a quality incentive program. It removes previous provisions regarding regular inflationary adjustments and caps on rate reductions, streamlining the reimbursement process to support the financial sustainability of nursing home providers. The bill mandates that the weighted average of the direct and indirect care components will remain at fiscal year 2025 levels for the specified years, and it includes a provision ensuring that if any part of the act is found invalid, the remainder will still be effective. The bill is deemed necessary 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