H.R. 8662 — To provide assisted living assistance through Medicaid and low-income housing tax credit.

This section requires states to provide Medicaid coverage for services furnished in an assisted living residence (consistent with state law) as a mandatory benefit under the state plan, effective January 1, 2027 (with a possible one-year delay, or longer for two-year legislative sessions, for states requiring state legislation to implement). Coverage applies to individuals requiring a nursing facility or hospital level of care (reimbursable under the state plan or waiver), who meet income and resource requirements under section 1902(a)(10)(A)(i)(V), and for whom estimated annual average per capita Medicaid costs for all services in assisted living are no greater than if provided in a nursing facility or hospital. (Thus, the change promotes noninstitutional long-term care options while ensuring cost neutrality.)

This section adds a new selection criterion to qualified allocation plans (QAPs) under the low-income housing tax credit (LIHTC) program—specifically, projects that reduce medical assistance (i.e., Medicaid) costs for long-term services and supports for the elderly by providing such services in non-institutional settings (e.g., home- or community-based care). The amendment applies to allocations made after January 1, 2027.