Committee hears testimony on HB 2560 to restructure adult foster home reimbursement rates

The House Committee on Early Childhood and Human Services on Feb. 11 heard testimony on House Bill 25 60, which would require the Oregon Department of Human Services to adopt an acuity-based methodology for calculating reimbursement rates to adult foster home providers by Jan. 1, 2026, and to increase base rates of payment. Jane Ellen Whitehead, deputy director of policy for the Office of Aging and People with Disabilities, presented the department’s proposal and answered committee questions.

The bill would replace the state’s current add-on model — created in the 1980s — with a points-based acuity system that assigns scores to activities of daily living, cognition, challenging behaviors and medical treatments. Under the proposal, points convert to five tiers that determine the rate a provider receives. Whitehead said the department’s analysis shows that adult foster homes serve a high share of the state’s highest-acuity consumers, and that the current system has produced a large…