Resolve, to Provide Stability to Long-term Care Facility Funding
Maine Legislature, Session 132, LD 1489
Committee: Health and Human Services
Sponsors: GROHOSKI, EATON

Legislative Document
No. 1489
S.P. 604
In Senate, April 8, 2025
Resolve, to Provide Stability to Long-term Care Facility Funding
(EMERGENCY)
Reference to the Committee on Health and Human Services suggested and ordered printed.
DAREK M. GRANT
Secretary of the Senate
Presented by Senator GROHOSKI of Hancock.
Cosponsored by Representative EATON of Deer Isle and
Senators: BENNETT of Oxford, MOORE of Washington, STEWART of Aroostook, TIPPING 
of Penobscot, Representatives: COLLAMORE of Pittsfield, FRIEDMANN of Bar Harbor, 
MILLIKEN of Blue Hill, STROUT of Harrington.
Emergency preamble.  Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, residential care facilities in this State provide services critically important 
to ensuring a continuum of residential services for elderly residents and residents with 
disabilities in this State; and
Whereas, residential care facilities in this State are currently reimbursed by the 
MaineCare program under an antiquated and inadequate rate methodology that continues 
to fall short of covering the costs of delivering care to those who require residential services 
and cannot afford to pay for those services with their own funds; and 
Whereas, the MaineCare program has recently announced that it will not increase 
those already inadequate rates to cover inflation as required by current law; and
Whereas, the MaineCare program has failed to schedule a rate determination process 
to update the rate methodology for residential care facilities to adequately cover the 
reasonable costs of delivering care to those in need; and
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, be it
Sec. 1.  Cost-of-living adjustment reimbursement for residential care 
facilities, private nonmedical institution Appendix C facilities. Resolved:  That, 
notwithstanding any provision of law to the contrary, the Department of Health and Human 
Services shall immediately recalculate rates to reflect a cost-of-living adjustment consistent 
with the standards provided in the Maine Revised Statutes, Title 22, section 3173-J, 
subsection 2, paragraph D, subparagraph (3) for all components of the current payment 
system for residential care facilities provided in the department's rule Chapter 101: 
MaineCare Benefits Manual, Chapter III, Section 97, Private Non-Medical Institution 
Services, and Section 97, Appendix C, Principles of Reimbursement for Medical and 
Remedial Service Facilities, and rule Chapter 115: Principles of Reimbursement for 
Residential Care Facilities - Room and Board Costs.  The department shall calculate the 
inflation factor for this adjustment in accordance with the United States Department of 
Labor, Bureau of Labor Statistics Consumer Price Index medical care services index from 
the prior December for professional services, nursing home services and adult day care 
services or a standardized index selected by the department pursuant to Title 22, section 
3173-J, subsection 2, paragraph D, subparagraph (3), whichever is greater.  The adjustment 
required by this section must be applied retroactively to January 1, 2025. 
Sec. 2.  Rate determination for residential care facilities, private 
nonmedical institution Appendix C facilities. Resolved:  That the Department  of 
Health and Human Services shall immediately commence a rate study in accordance with 
the Maine Revised Statutes, Title 22, section 3173-J, subsection 2, paragraph C, 
subparagraph (5) to determine rates for residential care facility services and shall complete 
the study and implement rates in accordance with the study with an effective date no later 
than January 1, 2026. To ensure that access to services is not disrupted by sudden changes 
in reimbursement, the rates implemented in accordance with this section must be designed 
to ensure that a provider will not receive a decrease in rates in the first year of the new rate 
methodology determined under this section and that a provider will not receive more than 
a 5% decrease in rates in the 2nd year and that a provider will not receive more than a 10% 
decrease in the 3rd year. 
Emergency clause.  In view of the emergency cited in the preamble, this legislation 
takes effect when approved.
SUMMARY
This bill requires the Department of Health and Human Services to provide a cost-of-
living adjustment for residential care facilities and apply that adjustment retroactively to 
January 1, 2025.  The bill also requires the department to conduct a rate study and determine 
rates for residential care facility services no later than January 1, 2026.