Amends and adds to existing law to provide for the establishment of Medicaid reimbursement payment methods and to provide for a temporary reduction in certain reimbursements.

This legislation reduces net reimbursements to hospitals and nursing facilities in SFY 2020 and SFY 2021 to help achieve the Medicaid general fund needs of a 1% overall reduction in SFY 2020 and a 2% reduction in SFY 2021. It directs the Department of Health and Welfare to work collaborative with hospital and nursing facility providers to update reimbursement methods. For hospitals it involves a statewide move to value-based payment and the establishment of a quality payment program. For both hospitals and nursing facilities, the legislation will move Medicaid payment methods away from cost-based reimbursement to allow better control of Medicaid expenditures as well as incentivize and promote quality care and better health outcomes.