Changes the rate rebase of the direct care and indirect care components of the nursing home payment methodology from even-numbered calendar years to annually, beginning July 1, 2019.

Requires the base year cost report be adjusted for inflation for the twenty-four month period between the midpoint of the base year cost report and the beginning of the rate year.

Requires direct care and indirect care components be adjusted separately for inflation based on the annual rate of inflation determined by the consumer price index for all urban consumers.