HI HB725

Appropriates funds to increase Medicaid reimbursement rates for home and community-based services, including residential services in community care foster family homes, expanded adult residential care homes, and licensed developmental disability domiciliary homes.

Establishes intent that combined state and maximum available federal matching funds increase payments by $2,127 per client per month, reaching a total of $3,824 per client per month for service providers.

Addresses identified wage pressures and staffing challenges in long-term care, noting current direct care wages fall below the 25th percentile of comparable occupations and providers lack ability to offer employee benefits.

Funds apply to both fiscal years 2025-2026 and 2026-2027, with the Department of Human Services required to obtain maximum available federal matching funds.

Takes effect July 1, 2025.