S. 2076: HCBS Relief Act of 2025

This legislation, known as the HCBS Relief Act of 2025, aims to provide increased federal funding for state Medicaid programs specifically for home and community-based services (HCBS). Here are the key components of the bill:

Increased Federal Funding

The bill proposes to raise the federal medical assistance percentage (FMAP) for states that participate in HCBS programs by 10 percentage points for the fiscal years 2026 and 2027. This means that the federal government will cover a larger share of the costs for home and community-based services that states provide.

Eligibility for Increased Funding

To qualify for the increased funding, states must submit an application to the Secretary of Health and Human Services. This application needs to include:

• A description of planned activities to improve home and community-based services.
• Assurances that funds will be used appropriately, including timelines for spending and commitments to maintain state funding levels.
• Plans for monitoring and reporting on fund usage.

Activities for Improvement

States will be encouraged to collaborate with community partners to enhance the delivery of home and community-based services, focusing on several areas, including:

• Increasing payment rates for home health agencies and professionals to improve worker compensation.
• Providing paid sick leave and other benefits for home health workers.
• Implementing measures to improve job stability for workers in HCBS.
• Expanding services for individuals currently on waiting lists for HCBS.
• Purchasing emergency supplies and equipment to ensure service continuity and worker safety.

Reporting and Evaluation

States awarded funding must submit a report outlining how funds were utilized, the number of individuals served, and outcomes of the services provided by December 31, 2029. Additionally, the Secretary is tasked with evaluating the program's overall effectiveness, including impacts on service access and quality.

Accountability Measures

The bill includes provisions for states to maintain oversight of spending practices to ensure compliance with federal standards and to protect the interests of service recipients. The increased FMAP provisions are designed to encourage states to enhance their home and community-based offerings without withdrawing existing state resources for those services.

Definitions and Key Terms

The legislation defines key terms such as “eligible individual” (a person eligible for Medicaid) and the scope of “home and community-based services,” which includes various healthcare and supportive services delivered in a community setting or at home.

Timeline and Implementation

States will need to act relatively quickly, as the Secretary has 90 days to certify complete applications. Funding provided under this legislation must be utilized by September 30, 2029, ensuring that states maximize the available financial support in a timely manner.

Relevant Companies

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