SB 1415 would require nursing homes to phase in higher wages for employees who provide direct care, raising the minimum hourly wage to $22.50 by January 1, 2026, and $25.00 by January 1, 2027. For Medicaid-funded nursing homes, the mandate applies only if state reimbursement rates are sufficient to cover the wage increase; if a facility receives a rate adjustment for wage increases but does not pass those increases through to workers, the Department of Social Services may reduce the rate by the amount of the adjustment.
The bill also expands nursing home licensing disclosure requirements. Applicants for a nursing home license would have to provide additional ownership, financial, and background information, including disclosures about private equity companies or real estate investment trusts with ownership interests, audited financial statements, and wage data showing compliance with the new wage law. These changes are aimed at increasing transparency around ownership structure, finances, and compliance in the nursing home industry.
In addition, the bill directs the Office of Policy and Management to require nonprofit employers contracting with the state to operate group homes for individuals with intellectual or developmental disabilities to implement a similar wage schedule for direct service workers. Those workers would also reach $22.50 per hour by January 1, 2026, and $25.00 by January 1, 2027, with limited wage increases for employees already earning above the minimum but not more than $30 per hour. The state would transfer funds, within available appropriations, to relevant agency accounts to support the wage increases, and the secretary must report to the legislature by December 31, 2026 on funding levels and workforce effects.
The bill would affect state labor, health care, and human services policy by setting new wage floors for two categories of care workers and by tying some Medicaid nursing home wage increases to state reimbursement adequacy. It would also amend nursing home licensing law in section 19a-491a to require more detailed ownership and financial disclosures, including information related to private equity, REITs, and wage compliance. Affected parties include nursing homes, Medicaid-funded facilities, nonprofit group home providers, state agencies such as DPH, DSS, DDS, and OPM, and workers providing direct care or residential support services.
Overall, the bill appears to have generally favorable support in committee, as reflected by joint favorable votes in both the Human Services and Appropriations committees. The main point of contention is likely fiscal: the bill requires significant wage increases and state funding transfers, while also limiting the mandate for Medicaid-funded nursing homes unless reimbursement rates can support it. Another likely area of debate is the burden on providers versus the goal of improving recruitment, retention, and care quality for residents and clients.
SB 1415 would create new statutory wage requirements for nursing home direct care workers and for certain nonprofit group home workers serving individuals with intellectual or developmental disabilities. It would also amend nursing home licensing law to require expanded disclosure of ownership, financial condition, and wage compliance, including private equity and REIT involvement. The bill would affect the Department of Public Health, Department of Social Services, Department of Developmental Services, and Office of Policy and Management, and it would condition some Medicaid-funded nursing home wage obligations on the adequacy of state payment rates.
The available voting history suggests the bill had generally positive support, with joint favorable votes in both committees. The measure appears to have been viewed as a workforce and care-quality initiative aimed at improving recruitment and retention in long-term care and disability services. At the same time, the structure of the bill reflects concern about fiscal feasibility, especially for Medicaid-funded nursing homes and for the state budget impact of funding wage increases for group home providers.
The most notable tension is between worker pay increases and provider/state affordability. Nursing home operators may object to mandated wage floors if Medicaid reimbursement does not fully cover the added labor costs, while supporters are likely focused on addressing staffing shortages and low pay. Another point of contention is the expanded disclosure regime for nursing home ownership and finances, particularly the requirement to disclose private equity and REIT interests, which may be seen as increasing transparency by some and as adding regulatory burden by others.