Idaho Health Care Association

Board of Directors
Executive Summary & Resolution

Idaho Nursing Facility Sustainability & Quality Act
H.B. ____ — 69th Legislature, First Regular Session — 2027
Prepared by IHCA Staff for Board Review
Robert Vande Merwe, Executive Director
Luke Malek, Policy Director • Lindsay Likes, Director of Government Affairs
August 2026
BOARD CONFIDENTIAL — FOR DIRECTORS ONLY

Purpose of This Document

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.

Board Action Requested: Vote to adopt Resolution 2026-01, authorizing IHCA staff to pursue legislative passage during the 2027 Idaho legislative session. This is the single most significant policy initiative IHCA will undertake in this legislative cycle.
In Plain English

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.

The Problem — Why This Matters Now

$259
Idaho Medicaid Rate/Day
46th
National Ranking
1985
Property Base Year
10+
Closures Since 2020
$45M
Unclaimed Federal $/Yr

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.

If we do nothing: More closures. More displaced residents. More unclaimed federal funds. CNA wages fall further behind retail. Rural communities lose healthcare infrastructure and jobs. The crisis deepens and becomes more expensive to fix later.

The Solution — What the Bill Does

The Idaho Nursing Facility Sustainability & Quality Act makes six reforms, each modeled on proven programs in other states:

#ReformWhat It DoesModel State
1Modern Rate FormulaReplace RUG-III with 5-component PDPM-aligned methodology. Eliminate $9.24 property base and BAF.North Dakota
2Unlock Federal FundsProvider assessment from ~3.5% → 5.5% (below 6% cap). Generates ~$32M/yr in new federal revenue.Indiana
3Quality Incentives100-point scorecard. Score 80+ = $15/day bonus. Score 90+ = $30/day bonus.Colorado
4Rate Floor + ProtectionsNo rate below 90% of cost. No mid-year cuts without access study, 180-day notice, JFAC review.Colorado
5Workforce PipelineCNA scholarships, wage pass-throughs, nurse loan repayment, rural weighting. Funded by assessment + federal match.Montana
6TransparencyAnnual rate calendar, public hearings, 60-day comment, JFAC oversight, all data published online.Multiple

What It Costs — And What Idaho Gets Back

MetricYear 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
Key number: Every $1 of state investment generates $2.33 in federal matching funds. The Year 1 net state cost of $5.3M generates $32M+ in federal revenue for Idaho's healthcare economy. This is the highest-ROI investment in the state budget.

Impact on IHCA Member Facilities

Based on two worked examples in the technical guide:

What We've Already Built

IHCA staff has prepared a complete legislative campaign package:

DocumentStatusDescription
Draft Legislative Bill✅ Complete18 sections amending Title 56, Idaho Code. Statement of Purpose, Fiscal Note.
Full Research Proposal✅ Complete30+ page policy report with data, model state contacts, legal framework.
Legislator Brief✅ Complete3-page plain English handout for every legislator.
Technical Administration Guide✅ Complete14-step algorithm, all formulas, quality rubric, 2 worked examples.
Governor's Executive Brief✅ Complete2-page ROI-framed summary for Governor Little's office.
Opposition Response Guide✅ Complete15 anticipated objections with data-backed rebuttals.
Committee Testimony Script✅ CompleteRobert Vande Merwe primary, Luke Malek policy, 3 supporting witnesses.
50-State Rate Comparison✅ CompleteAll 50 states + DC with rates, methodology, sources.
Visual Infographics✅ Complete10 animated visual chapters for presentations.
Execution Playbook✅ CompleteStep-by-step timeline, individual to-do lists, contact directory.
Communications Package✅ CompleteAll letters, emails, templates, press release, op-eds, media kit.

All materials: medicaid-panel-study.vercel.app

What IHCA Staff Will Execute (If Board Endorses)

PhaseTimelineKey ActionsLead
1. FoundationAug–Sep 2026Board endorsement, sponsor identification, DHW meeting request, CMS Region 10 pre-consultationRobert / Luke
2. Build SupportOct–Nov 2026Coalition letters, interim committee presentation, DFM briefing, independent economic studyLindsay / Luke
3. Pre-SessionDec 2026LSO formal submission, JFAC prep, media strategy, grassroots activationLindsay / Dana
4. SessionJan 2027Bill introduction, press release, committee hearing prepAll staff
5. CommitteeFeb 2027H&W Committee hearing, testimony, voteRobert / Luke
6. Floor & GovernorFeb–Mar 2027Floor vote, crossover, Governor signsLindsay / Luke
7. ImplementationApr–Jun 2027DHW SPA submission, rulemaking beginsRobert / Luke

What the Board Is Asked to Do

Board Members — Your Role in This Campaign

  1. Vote to adopt Resolution 2026-01 (below) — formally endorsing the bill and authorizing IHCA staff to execute the campaign.
  2. Activate your facilities. Distribute the grassroots kit to your administrators. Encourage families and employees to write their legislators. Identify potential testimony witnesses (administrators, CNAs, family members).
  3. Contact legislators in your region. Region directors — you are the most effective advocates in your territory. Use the legislator brief as a leave-behind.
  4. Attend the committee hearing. Board presence at the hearing signals that this is the industry's top priority. Coordinate with Lindsay Likes.
  5. Be available for media. If contacted by press, use the talking points provided. Refer complex questions to Robert Vande Merwe.

Board Member Action Items — By Role

Officers

PersonAction ItemsDeadline
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

Representatives

PersonAction ItemsDeadline
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

Region Directors

PersonRegionAction ItemsDeadline
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

Resolution 2026-01

Resolution of the Board of Directors
Idaho Health Care Association
Resolution No. 2026-01

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:

  1. Endorses the Idaho Nursing Facility Sustainability & Quality Act as IHCA's primary legislative priority for the 2027 Idaho legislative session;
  2. Authorizes IHCA's Executive Director, Policy Director, and Director of Government Affairs to pursue legislative passage, including but not limited to sponsor recruitment, committee testimony, coalition building, media engagement, and grassroots coordination;
  3. Directs all IHCA member facilities to support the legislative campaign through grassroots advocacy, including facilitating letter-writing by families, employees, and community stakeholders;
  4. Authorizes IHCA staff to expend Association resources necessary to execute the legislative campaign, with regular financial reporting to the Treasurer;
  5. Designates the Executive Director and Board President as the official spokespersons for the Association on all matters related to this legislation; and
  6. Directs the Executive Director to report monthly to the Board on campaign progress, legislative developments, and expenditures.

ADOPTED by unanimous vote of the Board of Directors of the Idaho Health Care Association on this _____ day of _____________, 2026.

Riley Sessions, President
Mike Robbins, Secretary

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

Next Steps — Immediately Following Board Vote

Within 1 week of board endorsement:
  1. Robert Vande Merwe sends DHW Director meeting request letter
  2. Luke Malek begins sponsor recruitment outreach to former colleagues
  3. Lindsay Likes initiates coalition outreach (AARP Idaho, Idaho Hospital Association, Idaho Medical Association)
  4. Dana Leavitt distributes grassroots activation kit to all 80+ member facilities
  5. Robert and Luke prepare CMS Region 10 pre-consultation request
  6. Riley Sessions and Robert co-sign Governor's office meeting request