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 Rate 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. A cost-of-living adjustment is a regular increase tied to rising costs — similar to how Social Security benefits are adjusted each year to keep up with inflation. Currently, these reimbursement rates may not be updated automatically, meaning the payments assisted living facilities receive from Medicaid could fall behind as their actual operating costs rise over time.

The bill primarily affects assisted living facilities that accept Medicaid patients, as well as the low-income older adults and people with disabilities who rely on Medicaid to help pay for their assisted living care. For facilities, automatic rate increases could help them better cover rising costs for staffing, food, utilities, and other services. For residents, it could help ensure that facilities remain willing and financially able to accept Medicaid patients, potentially preserving access to care.

From a cost standpoint, the state government would need to budget for these regular rate increases, as higher Medicaid reimbursements mean increased spending from state (and potentially federal) funds. The bill has been introduced and referred to the Senate Finance Committee, where lawmakers will likely examine its potential impact on the state budget alongside its benefits for providers and residents.