CT HB07122

Establishes a five-component cost system for determining nursing home reimbursement rates: direct costs, indirect costs, fair rent, capital-related costs, and administrative/general costs.

Creates two geographic peer groupings by county (Fairfield County and all other counties) for determining allowable direct costs, with different maximum cost percentages applied to each component based on fiscal year.

Specifies rate increase and decrease limits for nursing facilities across multiple fiscal years, with constraints ranging from 1-6 percent annually depending on the year and facility characteristics.

Requires rebasing of costs (including all five cost components) no more frequently than every two years and no less frequently than every four years, as determined by the Commissioner of Social Services.

Restricts fair rent adjustments to occur only upon full rebasing of costs, except for fair rent increases provided separately under rate adjustment provisions for facilities with material changes in circumstances.