AN ACT SUSPENDING INFLATION COST LIMITATIONS FOR INTERMEDIATE CARE FACILITIES.

SB 120 suspends annual cost increase limits on direct care expenses for Medicaid-funded intermediate care facilities (long-term care facilities serving individuals with disabilities or chronic conditions). This change directly affects these facilities by removing a cap that previously restricted how much they could raise costs each year to cover inflation. The bill modifies existing law (section 17b-340) to allow facilities to adjust direct care costs without the previous inflation-based limitation. The stated purpose is to reduce financial strain on these facilities operating under Medicaid.