SECTION 1. Chapter 118E of the General Laws, as appearing in the 2020 official edition is hereby amended by inserting at the end thereof the following new sections:-

Section 80. In setting Medicaid rates for nursing homes licensed pursuant to section seventy-one of chapter 111 of the general laws, the executive office of health and human services shall annually adjust such payments with an inflation adjustment consistent with the annual unadjusted Skilled Nursing Facility Market Basket Update, as established by the Centers for Medicare & Medicaid Services in 42 C.F.R. § 413.337.

Section 81. For the purpose of recognizing current labor and resident care costs in setting Medicaid rates for nursing homes licensed pursuant to section seventy-one of the chapter 111 of the general laws, the executive office of health and human services shall use as base year costs for rate determination purposes the reported costs of the calendar year not more than 2 years prior to the current rate year.

Section 82. Nursing homes licensed pursuant to section seventy-one of chapter 111 of the general laws must have sufficient nursing staff with the appropriate competencies and skills sets to provide nursing and related services to assure resident safety and attain or maintain the highest practicable physical, mental, and psychosocial well-being of each resident, as determined by resident assessments and individual plans of care and considering the number, acuity and diagnoses of the facility's resident population in accordance with the facility assessment required at 42 CFR 483.70(e).  For the purpose of setting Medicaid rates for nursing homes licensed pursuant to section seventy-one of chapter 111 of the general laws, the executive office of health and human services shall recognize its full share of the actual nursing costs of meeting this requirement.  

Section 83. In setting Medicaid rates for nursing homes licensed pursuant to section seventy-one of chapter 111 of the general laws, the executive office of health and human services shall utilize a single form by the division and the federal Department of Health and Human Services to: (i) collect resident care information including, but not limited to, case-mix information to be used for resident reimbursement; and (ii) set the nursing component of the Medicaid skilled nursing facility rate. In transitioning to a new single acuity payment method for the nursing component, MassHealth shall ensure that facilities will receive a nursing rate per diem that is no less than the per nursing per diem amount under the dual acuity system.

Section 84. In setting the capital rate component of the Medicaid rate for nursing homes licensed pursuant to section seventy-one of chapter 111 of the general laws, the executive office of health and human services shall recognize costs necessary to enable facilities to invest in building repairs, maintenance, updates and durable medical equipment to ensure nursing facility resident safety, comfort and quality of life. Reimbursement for new and updated construction projects shall be based on valid economic indicators that accurately reflect current building and maintenance costs.