Relating to options for long-term care, and making appropriations

This bill relates to options for long-term living and funding of long-term care services. The bill requires the department of health and human services (HHS) to establish a rate structure for reimbursement of the transportation costs of home health care providers by incorporating an increased reimbursement amount for travel time into the per visit reimbursement. The department shall submit a report of the rate structure and the projected cost of application of the reimbursement rate structure to the governor and the general assembly by December 1, 2025. 1 (intent for Iowa’s long-term living system), including maximizing independence, choice, and dignity for consumers, the director of HHS shall convene a study group that includes members specified in the bill to perform a focused review of the alternatives for long-term living options in the state. The review shall include a survey of existing approaches utilized in other states and innovative approaches to provide Iowans with access to an extensive range of high-quality, affordable, and cost-effective long-term living options. The review shall also consider how the state may assist nursing facilities not at full occupancy by incorporating other sectors. The study group shall submit a report of its findings and recommendations to the governor and the general assembly by December 15, 2025. The bill provides that for FY 2025-2026, Medicaid reimbursement rates for adult day care providers who provide services to Medicaid home and community-based services waiver recipients shall be increased by 5 percent over the rates in effect on June 30, 2025. The bill makes an appropriation to HHS for FY 2025-2026 from the general fund of the state to be used in collaboration with affected stakeholders to continue to expand the Iowa return to community program. The bill requires HHS to submit to the governor and the general assembly by December 15, 2025, an estimate of the cost to fund an expansion of the Iowa return to community program to provide access to all interested consumers. The bill makes an appropriation to HHS for FY 2025-2026 from the general fund of the state to be used by HHS to employ a statewide dementia care coordinator within HHS to provide coordination services related to statewide dementia care as described in the bill.