HI HR78

Request Department of Human Services to conduct feasibility studies in 2032 and every ten years thereafter on increasing Medicaid reimbursement rates for community care foster family homes (CCFFHs) and expanded adult residential care homes (E-ARCHs).

Each study must review the existing Medicaid reimbursement payment model, determine if overall savings can be achieved by increasing rates for CCFFH and E-ARCH providers, and evaluate impacts of rate increases on uptake, utilization, and cost savings.

Current Medicaid reimbursement for CCFFHs is $47.06 per day (maximum $2,500 per month) compared to nursing homes at $280 per day (maximum $10,100 per month) for the same level of care.

Low reimbursement rates cause many CCFFH and E-ARCH caregivers to decline Medicaid patients and reserve beds for higher-paying private patients, reducing availability of community-based care options and increasing overall Medicaid costs.

Department of Human Services must submit a report to the Legislature no later than twenty days prior to the Regular Session following completion of each study.