Requires the executive office of health and human services (EOHHS) to apply an automatic cost-of-living adjustment (“COLA”) to the Medicaid reimbursement rates paid for assisted living services provided pursuant to this chapter.

Rhode Island Assisted Living Medicaid Cost-of-Living Adjustment Bill

This bill would require Rhode Island's Executive Office of Health and Human Services (EOHHS) to automatically apply a cost-of-living adjustment (COLA) to the Medicaid payment rates for assisted living services. Currently, the rates that the state pays to assisted living facilities for caring for Medicaid recipients do not automatically increase over time to keep up with rising costs. This bill would change that by building in regular, automatic adjustments tied to inflation or cost-of-living measures.

The bill primarily affects assisted living facilities that accept Medicaid patients, as well as the low-income seniors and adults with disabilities who rely on Medicaid to help pay for their assisted living care. Without regular rate adjustments, facilities may struggle to cover the rising costs of staffing, supplies, and operations, which can affect the quality and availability of care. By requiring automatic COLAs, the bill aims to help ensure that reimbursement rates remain more in line with actual costs over time.

For everyday Rhode Islanders, this bill could make it easier for Medicaid recipients to find and remain in assisted living placements, since facilities would have more financial stability to continue accepting Medicaid residents. The bill has been introduced and referred to the House Finance Committee, where lawmakers will review its potential costs to the state budget before deciding whether to move it forward.