OFFICE OF FISCAL ANALYSIS Legislative Office Building, Room 5200 Hartford, CT 06106 (860) 240-0200 http://www.cga.ct.gov/ofa sSB-1057 AN ACT CONCERNING MINIMUM STAFFING LEVELS IN NURSING HOMES. Primary Analyst: ES 4/19/21 Contributing Analyst(s): RDP, LD, CP Reviewer: LD OFA Fiscal Note State Impact: Agency Affected Fund-Effect FY 22 $ FY 23 $ Social Services, Dept. GF - Cost See Below See Below Note: GF=General Fund Municipal Impact: None Explanation The bill results in a cost to the Department of Social Services (DSS) associated with revising nursing home staffing levels and establishing a minimum level of reimbursement for nursing homes. Staffing ratio requirements will result in a significant cost to DSS to the extent nursing home staffing costs are reflected in future Medicaid payments. The bill specifies that a total of 4.1 hours of direct care be provided per resident per day, including 0.75 hours by a registered nurse (RN), 0.54 hours by a licensed practical nurse (LPN), and 2.81 hours by a certified nurse's assistant (CNA). Based on 2019 nursing home staffing data, approximately 50% of homes do not meet the bill's requirements for RNs (with an average of 0.70 hours of direct care provided per resident per day). Approximately 10% of homes do not meet the LPN staffing requirements, while approximately 80% do not meet the requirements for CNAs. The cost for nursing homes to staff at the proposed levels will depend on the actual number and level of staff required and their associated wages but is anticipated to be at least $80 million. 2021SB-01057-R000522-FN.DOCX Page 2 of 2 In addition, the bill requires DSS to establish a minimum percentage of Medicaid reimbursement to nursing homes for the provision of direct care to nursing home residents. The impact depends on the minimum rate that will be established. The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.