HB3125 Summary

• Changes the effective date of nursing facility support component reimbursement rate increases from July 1, 2014 to July 1, 2023, maintaining the 8.17% increase from the June 30, 2014 baseline rate.

• Implements a Patient Driven Payment Model (PDPM) reimbursement system for nursing facilities effective July 1, 2022, replacing the previous RUG-IV methodology with resident-centered, facility-specific, cost-based rates.

• Establishes variable staffing per diem add-ons ranging from $9 to $38.68 based on facilities' achievement of staffing levels indicated by the STRIVE study, with protections against reductions exceeding 5% in consecutive quarters.

• Allocates $70,000,000 annually for quality-based incentive payments to nursing facilities using Centers for Medicare and Medicaid Services Five-Star Quality ratings as the primary metric.

• Requires payments to nursing facilities for certified nursing assistant (CNA) tenure and promotion wage increments, with increments ranging from $1.50 per hour for CNAs with 1-2 years of experience up to $6.50 per hour maximum for those with 6+ years of experience.