WA HB1555

Beginning July 1, 2025, nursing home payment rates must be rebased annually to the most recent historical cost data, changing from the previous even-numbered year rebasing schedule

Rates paid on July 1, 2025 will be based on 2023 calendar year cost reports, with the department required to confirm statewide average daily rate increases match at least the skilled nursing facility market basket index inflation rate

The payment system maintains three main components: direct care (paid at 100% or greater of statewide case mix neutral median costs, capped at 118% of base year costs), indirect care (paid at 90% or greater of statewide median costs with 90% minimum occupancy assumption), and capital (using fair market rental system)

A rate add-on will be applied to ensure the weighted average nursing facility payment rate for fiscal year 2026 equals the fiscal year 2025 rate

The bill includes an emergency clause, taking effect immediately to preserve public peace, health, safety, and support of state government institutions