Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S870 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 1034 FILED ON: 1/15/2025
3	3	SENATE . . . . . . . . . . . . . . No. 870
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Patricia D. Jehlen
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act clarifying rate setting processes for home health and home care services.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Patricia D. JehlenSecond MiddlesexAngelo J. Puppolo, Jr.12th Hampden1/27/2025Hannah Kane11th Worcester1/27/2025Michael O. MooreSecond Worcester1/27/2025Paul K. Frost7th Worcester1/28/2025Joanne M. ComerfordHampshire, Franklin and Worcester1/28/2025Paul W. MarkBerkshire, Hampden, Franklin and
16	16	Hampshire
17	17	2/10/2025Jacob R. OliveiraHampden, Hampshire and Worcester2/10/2025James B. EldridgeMiddlesex and Worcester2/11/2025Thomas M. Stanley9th Middlesex2/14/2025Sal N. DiDomenicoMiddlesex and Suffolk2/20/2025John F. KeenanNorfolk and Plymouth2/20/2025Manny Cruz7th Essex2/25/2025Adam J. Scanlon14th Bristol3/3/2025Michael D. BradySecond Plymouth and Norfolk3/3/2025 1 of 3
18	18	SENATE DOCKET, NO. 1034 FILED ON: 1/15/2025
19	19	SENATE . . . . . . . . . . . . . . No. 870
20	20	By Ms. Jehlen, a petition (accompanied by bill, Senate, No. 870) of Patricia D. Jehlen, Angelo J.
21	21	Puppolo, Jr., Hannah Kane, Michael O. Moore and other members of the General Court for
22	22	legislation to clarify rate setting processes for home health and home care services. Health Care
23	23	Financing.
24	24	[SIMILAR MATTER FILED IN PREVIOUS SESSION
25	25	SEE SENATE, NO. 755 OF 2023-2024.]
26	26	The Commonwealth of Massachusetts
27	27	_______________
28	28	In the One Hundred and Ninety-Fourth General Court
29	29	(2025-2026)
30	30	_______________
31	31	An Act clarifying rate setting processes for home health and home care services.
32	32	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
33	33	of the same, as follows:
34	34	1 SECTION 1. Section 13D of Chapter 118E of the general laws is amended after the
35	35	2second paragraph by inserting the following new paragraph:-
36	36	3 Such rates for home health and continuous skilled nursing agencies, as defined under
37	37	4section 51K of chapter 111, shall be established and reviewed at least biennially. In setting such
38	38	5rates, the executive office shall use as base year costs for rate determination purposes the
39	39	6reported costs of the calendar year not more than 4 years prior to the current rate year, adjusted
40	40	7for reasonableness and to incorporate any new regulatory costs imposed since said base year
41	41	8costs. In establishing rates of payment to home health agencies, the executive office shall
42	42	9consider all costs which must be incurred by efficiently and economically operated providers. 2 of 3
43	43	10The rates shall also include an allowance for reasonable administrative expenses and a
44	44	11reasonable profit factor, as determined by the executive office. Such cost analysis shall include,
45	45	12but not be limited to, the following: costs of similar services provided in other care settings; use
46	46	13of national or regional indices to measure increases or decreases in reasonable costs incurred
47	47	14since the base year costs; the revision of existing historical cost bases, where applicable, to
48	48	15reflect changing norms or models of efficient service delivery; and other means to encourage the
49	49	16cost-efficient delivery of services. The Secretary shall, concurrent with the completion of setting
50	50	17such rates, provide a report to the house and senate committees on ways and means detailing
51	51	18how the rates issued under this paragraph were analyzed and revised; provided further, that the
52	52	19report shall compare the inflationary considerations made in the adopted rate with the most
53	53	20recent “Home Health Agency Market Basket” index posted by the United States Department of
54	54	21Health and Human Services, Centers for Medicare and Medicaid Services; provided further, that
55	55	22if the adopted rate does not rely on the “Home Health Agency Market Basket” index for the
56	56	23purpose of determining inflationary adjustments, then the report will simulate what the rate
57	57	24would have been if such index was a factor in rate development. In determining the methodology
58	58	25for setting rates, the Secretary shall consult with stakeholders impacted by the rates.
59	59	26 SECTION 2. Section 4 of Chapter 19A is hereby amended by adding after Section 4D the
60	60	27following new section:
61	61	28 Section 4E. In establishing rates of payment pursuant to the second paragraph of section
62	62	2913C of chapter 118E of the M.G.L., the executive office shall consider changes to the state
63	63	30minimum wage or changes to employer payroll tax obligations as governmental mandates that
64	64	31affect the costs of providing homemaker and personal care homemaker services to elderly clients
65	65	32under this section. 3 of 3
66	66	33 The executive office shall also consider and analyze rates of payment and wages
67	67	34associated with providing similar services in both the public and private settings. In calculating
68	68	35operating costs, the executive office shall consider costs of; health insurance, employee benefits
69	69	36and training, payroll taxes, technology costs, administrative allocation and staff salaries using the
70	70	37latest available national or regional indices and benchmarked to the latest available Bureau of
71	71	38Labor Statistics median wage data. Nothing in this section shall be construed as limiting
72	72	39consideration of other governmental mandates or operating costs that affect the cost of providing
73	73	40services pursuant to section 4 of chapter 19A of the General Laws. In determining the
74	74	41methodology for setting rates, the Secretary shall consult with stakeholders impacted by the
75	75	42rates.
76	76	43 The Secretary of Elder Affairs shall, concurrent with the promulgation of the final rates
77	77	44of payment for services under section 4 of chapter 19A, issue a report to the House and Senate
78	78	45committees on ways and means detailing how the rates promulgated were analyzed and
79	79	46determined in compliance with the provisions set forth in the second paragraph of section 13C of
80	80	47chapter 118E of the General Laws. The report shall detail the department’s analysis of changes in
81	81	48the costs of providing homemaker and personal care homemaker services since the immediately
82	82	49preceding rate determination; provided further, that the report shall compare the inflationary
83	83	50considerations made in the adopted rate with the most recent “Home Health Agency Market
84	84	51Basket” index posted by the United States Department of Health and Human Services, Centers
85	85	52for Medicare and Medicaid Services; provided further, that if the adopted rate does not rely on
86	86	53the “Home Health Agency Market Basket” index for the purpose of determining inflationary
87	87	54adjustments, then the report will simulate what the rate would have been if such index was a
88	88	55factor in rate development.