Senate Bill 904 Advances, Strengthening Medicaid Long-Term Care Provider Incentives

OKLAHOMA CITY – Legislation aimed at enhancing incentive payments for Medicaid-contracted long-term care providers has advanced out of the Senate Appropriations Committee.

Senate Bill 904, authored by Sen. Paul Rosino, R-Oklahoma City, modifies and establishes new criteria for incentive payments, ensuring quality-driven reimbursement for facilities caring for some of Oklahoma’s most vulnerable citizens.

“Our senior citizen population is one of the most vulnerable that we care for and deserves the highest standard of care,” Senator Rosino said. “This legislation helps ensure that nursing facilities have the resources and incentives to provide it. By rewarding quality care and staff retention, we are prioritizing the well-being of our seniors and recognizing the dedicated professionals who care for them every day. This measure reinforces our commitment to quality care in long-term care facilities while incentivizing providers to improve patient outcomes. By tying funding to performance and retention benchmarks, we are working to elevate standards and ensure stability in our nursing workforce.”

If signed into law, nursing facilities will be eligible to earn payments from the Oklahoma Health Care Authority’s incentive reimbursement plan by achieving a two-star or higher long-stay quality measures rating. The bill also creates a nursing facility staff retention initiative.

Senate Bill 904 directs incentive reimbursement in a tiered structure based on the facility’s quality rating:

• 2-star rating – 40% of the per-day amount reserved for quality assurance per Medicaid patient day
• 3-star rating – 60% of the per-day amount
• 4-star rating – 80% of the per-day amount
• 5-star rating – 100% of the per-day amount

Additionally, the nursing facility staff retention initiative allows facilities to earn up to $3.00 per Medicaid patient day, with funding tied to Registered Nurse and Certified Nurse Aide retention over a 12-month period.

Senate Bill 904 also consolidates an advisory group with the Oklahoma Nursing Facility Funding Advisory Committee and requires the Health Care Authority to incorporate a case-mix component into payment rate methodologies. These provisions will ensure that funding aligns with patient needs and facility performance.

The bill now moves to the full Senate for further consideration. 

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