AN ACT RELATING TO HUMAN SERVICES -- MEDICAL ASSISTANCE

SB 466 changes how Massachusetts pays nursing facilities for Medicaid services. It replaces the current cost-based payment system with a new method that adjusts rates based on patient care needs (acuity), facility occupancy, and inflation. Crucially, 80% of certain annual rate increases must be used to raise wages for direct-care staff like nurses and aides (excluding exempt employees and contracted workers), with facilities required to certify compliance annually. This applies to all nursing facilities serving Medicaid patients under both fee-for-service and managed care programs.