Committee clears framework for provider-rate adjustments, flags $5 basic-care funding for review

The Appropriations — Human Resources Division discussed two interrelated budget matters: inflationary provider-rate adjustments and continuation of a $5-per-day basic-care payment for certain long-term care providers.

Committee staff reported that current budget language leaves $4,067,056 in general funds and $1,474,184 in federal funds (a total of $5,541,240) in the base budget to continue the $5-per-day basic-care payment. Senators debated whether the $5 should remain in the base budget or be treated as one-time funding for the upcoming biennium so the legislature can revisit the policy next session. Committee staff offered a path: subtract ongoing funds and add a one-time line item, and sponsor senators asked staff to draft study language to analyze rebasing of long-term care rates.

On provider inflation adjustments, members discussed a formula referenced in the bill as “2 and 2” and debated numbers including a 2% inflation limit. Committee comments indicated support for a 2% cap on inflationary adjustment in one portion of the bill and a 1.5% figure in another, and senators agreed to carry language forward to conference committee. Staff said they would draft the agreed language and produce study language for a rebasing review.

Committee staff told members they had incorporated most amendments and would give committee members a draft for review before finalizing the bill. With no formal roll-call vote recorded in the transcript, the committee accepted the drafting plan and moved the bill to drafting at the session’s end.

Next steps: staff (Keith and others) will prepare study language and a revised bill draft for committee review and the item will be taken into conference committee as needed.