(a) The payment rate for each facility shall be the sum of its per diem allowance for each cost category, subject to such limitations as the Secretary shall prescribe by rule pursuant to section 907 of this title.

(b) The payment for each facility's direct care costs shall be a function of the number of resident days of each resident class and shall be adjusted in a timely manner to reflect changes in the assessed needs of residents. (Added 1989, No. 267 (Adj. Sess.), § 4, eff. July 1, 1991; amended 1997, No. 61, § 270b.)