This document asks the IHCA Board of Directors to review and formally endorse the Idaho Nursing Facility Sustainability & Quality Act — a comprehensive reform of Idaho's Medicaid skilled nursing facility reimbursement system — and to authorize IHCA staff to execute the legislative campaign on behalf of the Association's 80+ member facilities.
Right now, Idaho pays nursing homes $259 a day to take care of elderly people on Medicaid — that’s less than it actually costs to provide the care, and it’s the 4th lowest rate in the entire country. The formula Idaho uses to figure out this payment is based on rules from 1985 and a system the federal government stopped using in 2019. Because the payment is so low, nursing homes are closing, workers are quitting to go work at Walmart where they can make more money, and elderly people are being moved far away from their families. This bill fixes the payment formula, raises a fee that nursing homes pay (not taxpayers) to unlock $32 million per year in federal money that Idaho is currently leaving on the table, creates bonuses for nursing homes that provide the best care, and starts a fund to train and pay more workers. It would cost the state about $2.80 per person per year — and for every $1 Idaho puts in, the federal government puts in $2.33. Six other states have already done this successfully.
Idaho's Medicaid nursing facility reimbursement system is broken. The rate methodology uses a patient classification system (RUG-III) that the federal government abandoned in 2019 and a property base rate of $9.24/day from 1985. The Budget Adjustment Factor systematically reduces rates below cost. The result: Idaho ranks 46th nationally, last in the Intermountain West, and more than 10 facilities have closed since 2020.
Meanwhile, Idaho's provider assessment sits at approximately 3.5% — well below the 6% federal safe harbor — leaving an estimated $45 million per year in federal matching funds unclaimed. That money goes to Montana, Oregon, and Washington instead.
CNA wages in Idaho facilities ($14-17/hr) cannot compete with retail ($15-19/hr at Walmart). Facilities cannot recruit or retain the direct care workers your residents depend on.
The Idaho Nursing Facility Sustainability & Quality Act makes six reforms, each modeled on proven programs in other states:
| # | Reform | What It Does | Model State |
|---|---|---|---|
| 1 | Modern Rate Formula | Replace RUG-III with 5-component PDPM-aligned methodology. Eliminate $9.24 property base and BAF. | North Dakota |
| 2 | Unlock Federal Funds | Provider assessment from ~3.5% → 5.5% (below 6% cap). Generates ~$32M/yr in new federal revenue. | Indiana |
| 3 | Quality Incentives | 100-point scorecard. Score 80+ = $15/day bonus. Score 90+ = $30/day bonus. | Colorado |
| 4 | Rate Floor + Protections | No rate below 90% of cost. No mid-year cuts without access study, 180-day notice, JFAC review. | Colorado |
| 5 | Workforce Pipeline | CNA scholarships, wage pass-throughs, nurse loan repayment, rural weighting. Funded by assessment + federal match. | Montana |
| 6 | Transparency | Annual rate calendar, public hearings, 60-day comment, JFAC oversight, all data published online. | Multiple |
| Metric | Year 1 (FY28) | Year 2 (FY29) | Year 3 (FY30) |
|---|---|---|---|
| Provider Assessment Revenue (5.5%) | $40.7M | $41.5M | $42.3M |
| Federal Match Generated | $32.0M | $54.0M | $82.0M |
| Net State General Fund Cost | $5.3M | $14.6M | $26.7M |
| Cost Per Idaho Resident/Year | $2.80 | $7.68 | $14.05 |
Based on two worked examples in the technical guide:
IHCA staff has prepared a complete legislative campaign package:
| Document | Status | Description |
|---|---|---|
| Draft Legislative Bill | ✅ Complete | 18 sections amending Title 56, Idaho Code. Statement of Purpose, Fiscal Note. |
| Full Research Proposal | ✅ Complete | 30+ page policy report with data, model state contacts, legal framework. |
| Legislator Brief | ✅ Complete | 3-page plain English handout for every legislator. |
| Technical Administration Guide | ✅ Complete | 14-step algorithm, all formulas, quality rubric, 2 worked examples. |
| Governor's Executive Brief | ✅ Complete | 2-page ROI-framed summary for Governor Little's office. |
| Opposition Response Guide | ✅ Complete | 15 anticipated objections with data-backed rebuttals. |
| Committee Testimony Script | ✅ Complete | Robert Vande Merwe primary, Luke Malek policy, 3 supporting witnesses. |
| 50-State Rate Comparison | ✅ Complete | All 50 states + DC with rates, methodology, sources. |
| Visual Infographics | ✅ Complete | 10 animated visual chapters for presentations. |
| Execution Playbook | ✅ Complete | Step-by-step timeline, individual to-do lists, contact directory. |
| Communications Package | ✅ Complete | All letters, emails, templates, press release, op-eds, media kit. |
All materials: medicaid-panel-study.vercel.app
| Phase | Timeline | Key Actions | Lead |
|---|---|---|---|
| 1. Foundation | Aug–Sep 2026 | Board endorsement, sponsor identification, DHW meeting request, CMS Region 10 pre-consultation | Robert / Luke |
| 2. Build Support | Oct–Nov 2026 | Coalition letters, interim committee presentation, DFM briefing, independent economic study | Lindsay / Luke |
| 3. Pre-Session | Dec 2026 | LSO formal submission, JFAC prep, media strategy, grassroots activation | Lindsay / Dana |
| 4. Session | Jan 2027 | Bill introduction, press release, committee hearing prep | All staff |
| 5. Committee | Feb 2027 | H&W Committee hearing, testimony, vote | Robert / Luke |
| 6. Floor & Governor | Feb–Mar 2027 | Floor vote, crossover, Governor signs | Lindsay / Luke |
| 7. Implementation | Apr–Jun 2027 | DHW SPA submission, rulemaking begins | Robert / Luke |
| Person | Action Items | Deadline |
|---|---|---|
| Riley Sessions President | • Chair board vote on Resolution 2026-01 • Co-sign Governor's office meeting request letter • Attend Governor's meeting with Robert • Quote in press release • Available for media interviews as Board President | Sep 2026 Sep 2026 Oct 2026 Jan 2027 Ongoing |
| Landon Taylor President-Elect | • Support Riley in public-facing role • Prepare to carry initiative forward as incoming president • Activate TanaBell facilities for grassroots • Attend committee hearing | Ongoing Jan 2027 Dec 2026 Feb 2027 |
| Mike Robbins Secretary | • Record board vote on Resolution 2026-01 • Distribute signed resolution to all board members • Activate The Gables for grassroots • Maintain official board records of campaign actions | Sep 2026 Sep 2026 Dec 2026 Ongoing |
| Breanna Jamison Treasurer | • Present financial impact analysis to board • Report on campaign expenditures • Activate Three Rivers (7 facilities) for grassroots • Identify Three Rivers CNA or family for testimony • Attend committee hearing | Sep 2026 Monthly Dec 2026 Jan 2027 Feb 2027 |
| Brian Bagley Past President | • Leverage relationships from presidency • Activate Lakeside Assisted Living for grassroots • Available as senior voice of IHCA if needed | Ongoing Dec 2026 Ongoing |
| Person | Action Items | Deadline |
|---|---|---|
| Gary Weaver AL Rep | • Engage Edgewood/assisted living members in letter campaign • Represent ALF perspective in advocacy • Contact legislators serving Boise-area AL districts | Dec 2026 Ongoing Jan 2027 |
| Jamie Anthony ICF Rep | • Engage ICF members (Developmental Options + others) in advocacy • Ensure ICF perspective represented in messaging • Contact legislators serving ICF-heavy districts | Dec 2026 Ongoing Jan 2027 |
| Graham Christensen MI/DD Rep | • Engage MI/DD providers (Harmony House + others) in advocacy • Coordinate with Jordan Monson on MI/DD messaging • Contact legislators serving MI/DD-impacted districts | Dec 2026 Ongoing Jan 2027 |
| Jordan Monson MI/DD Rep | • Activate Northern (12 facilities, MT/ID/WA) for grassroots • Represent northern Idaho perspective • Potential testimony witness for rural/northern impact • Coordinate with Region 1,2 Director (Tiffany Pettit) | Dec 2026 Ongoing Jan 2027 Nov 2026 |
| Justin Stenquist HH/H/HC Rep | • Engage home health/hospice members in advocacy • Cross-continuum messaging (how SNF reform benefits the full care continuum) • Contact legislators in home health/hospice-heavy districts | Dec 2026 Ongoing Jan 2027 |
| Person | Region | Action Items | Deadline |
|---|---|---|---|
| Tiffany Pettit Orchard Ridge | Regions 1, 2 (N. Idaho) | • Map all legislators in Regions 1 & 2 • Coordinate grassroots across all Region 1-2 facilities • Identify 1-2 rural facilities for testimony/examples • Schedule meetings with Region 1-2 legislators • Report participation metrics to Lindsay Likes | Oct 2026 Dec 2026 Jan 2027 Jan 2027 Monthly |
| Angie Hillishiem All Care Health Solutions | Regions 3, 4 (SW Idaho) | • Map all legislators in Regions 3 & 4 • Coordinate grassroots across all Region 3-4 facilities • Boise-area facilities: high volume of legislators — maximize contact • Schedule meetings with Region 3-4 legislators • Report participation metrics to Lindsay Likes | Oct 2026 Dec 2026 Jan 2027 Jan 2027 Monthly |
| Isaiah Hawkins Bennett Hills Rehab | Regions 5, 6, 7 (E/SE Idaho) | • Map all legislators in Regions 5, 6 & 7 • Coordinate grassroots across all Region 5-7 facilities • Identify rural/eastern Idaho facilities for testimony • Schedule meetings with Region 5-7 legislators • Report participation metrics to Lindsay Likes | Oct 2026 Dec 2026 Jan 2027 Jan 2027 Monthly |
WHEREAS, the Idaho Health Care Association ("IHCA") represents more than eighty (80) Medicaid-certified nursing facilities, assisted living facilities, intermediate care facilities, and home health agencies across the State of Idaho, comprising more than 6,200 licensed beds, employing more than 9,400 healthcare workers, and serving approximately 4,500 Idaho residents daily; and
WHEREAS, Idaho's Medicaid nursing facility reimbursement rate of approximately $259 per patient day ranks forty-sixth (46th) among the fifty states and is the lowest in the Intermountain West region, below Montana ($314), Oregon ($322), and Washington ($356); and
WHEREAS, Idaho's current rate methodology relies upon the RUG-III patient classification system, which the Centers for Medicare and Medicaid Services replaced with the Patient-Driven Payment Model (PDPM) in October 2019, and a property component base rate of $9.24 per patient day established in 1985; and
WHEREAS, the Budget Adjustment Factor systematically reduces calculated rates below the level supported by actual costs, and Idaho's provider assessment rate of approximately 3.5% is substantially below the 6% federal safe harbor, resulting in an estimated $45 million or more in available federal matching funds being left unclaimed annually; and
WHEREAS, more than ten (10) Idaho nursing facilities have closed since 2020, displacing vulnerable residents and eliminating healthcare jobs in communities across the state; and
WHEREAS, certified nursing assistant wages in Idaho nursing facilities ($14-17/hour) are below starting wages offered by retail employers, creating a severe workforce recruitment and retention crisis; and
WHEREAS, IHCA staff has prepared a comprehensive legislative proposal — the Idaho Nursing Facility Sustainability & Quality Act — incorporating six reforms modeled on proven programs in North Dakota, Colorado, Indiana, Montana, Oregon, and Washington, including a modern component-based rate methodology, provider assessment enhancement to 5.5%, a quality incentive program, a rate floor at 90% of cost, a workforce development fund, and rate-setting process reform; and
WHEREAS, the proposed legislation has been reviewed by IHCA's Policy Director, Luke Malek, Esq., for legal sufficiency and compliance with federal Medicaid law;
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Idaho Health Care Association hereby:
ADOPTED by unanimous vote of the Board of Directors of the Idaho Health Care Association on this _____ day of _____________, 2026.
Board Members Present:
Riley Sessions • Landon Taylor • Mike Robbins • Breanna Jamison • Brian Bagley
Gary Weaver • Jamie Anthony • Graham Christensen • Jordan Monson • Justin Stenquist
Tiffany Pettit • Angie Hillishiem • Isaiah Hawkins