Concerning nursing home payment rates.

HB 1555 changes how Washington state pays nursing homes for services starting July 1, 2025. It replaces the current system with a new three-part payment structure: direct care (covering staffing and therapy), indirect care (administrative and maintenance costs), and capital (facility costs). Payment rates will be adjusted annually based on the most recent cost data, with specific caps limiting how much rates can increase compared to previous years (e.g., a 142% cap for 2025). The bill directly affects nursing home providers receiving state Medicaid payments across Washington, aiming to better align payments with actual operating costs while maintaining minimum staffing standards.