SB 904 Summary

• Establishes an incentive reimbursement rate plan for nursing facilities that reserves $5.00 per patient day for quality assurance, funded by $2.00 deducted from facility per diem rates and $3.00 from the Oklahoma Health Care Authority, with payments based on long-stay quality measures ratings from the CMS Five-Star Quality Rating System.

• Allocates quality assurance payments based on facility star ratings: two-star facilities receive 40%, three-star receive 60%, four-star receive 80%, and five-star facilities receive 100% of the reserved per-day amount per Medicaid patient day.

• Creates an optional staff retention initiative allowing facilities to earn up to $3.00 per Medicaid patient day by maintaining minimum retention rates of 60% for Registered and Licensed Practical Nurses and 50% for Certified Nurse Aides for at least 12 months, with annual retention plans required by June 30 each year.

• Establishes the Oklahoma Nursing Facility Funding Advisory Committee with representatives from provider and aging advocacy organizations to develop new Medicaid reimbursement methodologies and recommend changes to the incentive rate plan.

• Becomes effective July 1, 2025, with emergency clause for immediate effect upon passage and approval.