1.    The department shall determine limits for the care of residents of basic care facilities that qualify as vendors of an aged, blind, and disabled persons program and for implementing provisions of this chapter based on data demonstrating the most recent costs that must be incurred for the care of residents in efficiently and economically operated basic care facilities. The department shall determine the limits every four years by July first, beginning with July 1, 2023.

2.    The department shall establish the limits by using the median rates from the most recent data available. The direct care limit must be the median plus eighteen percent.

The indirect care limit must be the median plus twelve percent.

3.    For the rate year beginning July 1, 2023, the department shall increase rates and limits three and one-half percent for inflation. For the rate year beginning July 1, 2024, the department shall increase rates and limits three and one-half percent for inflation.

4.    The department shall provide a rate increase in the amount of five dollars per day for the period beginning July 1, 2023, and ending June 30, 2025, after which the increase is not effective. This rate increase may not be included in any calculation of inflation increase.

5. Within the limits of legislative appropriations, the department shall establish an uncompensated care expense of three hundred sixty-five days.