Committee considers nursing facility COLAs, guardrail adjustments and working group on transition fund

The committee reviewed LD2131, a bill described as intended to preserve and improve access to nursing facility services in Maine.

The sponsor proposed amendments to ensure certain cost-of-living adjustments (COLAs) apply to providers that did not receive an initial COLA because they were subject to statutory guardrails during the rate-reform transition. The first draft contained a $6-per-resident-per-day direct-care add-on and retroactivity to Jan. 1, 2026; committee discussion removed the $6 add-on and replaced specific dates with 'as soon as practical' language in the amended draft.

Members discussed whether required retroactivity would run afoul of federal notice and approval processes; Department witnesses explained that federal notice requirements normally constrain retroactive changes but that the proposal rested on statutory language governing the order in which guardrail adjustments and COLAs are applied.

The updated amendment calls for creation of a departmental working group to examine the nursing facility transition fund — its use, whether it can fund COLAs, rebasing cycles, and reporting back to the committee. The working group would include departmental staff, the long-term care ombudsman, and representatives of provider organizations; meetings would be public and the group would report its findings to the committee.

The committee moved an 'ought to pass as amended' recommendation and proceeded by voice vote; chairs said the amended language would be revisited with working-group deliverables and timing clarified for the legislative calendar.

What’s next: staff and the department will convene the working group and return with proposals and a reporting timeline to the committee in the new legislative session.