DMAS to Issue Interim Nursing Facility Rate Increase

Based upon recent discussions with senior staff of the Department of Medical Assistance Services (DMAS), we’re happy to pass along news that in early July nursing facilities will begin receiving an interim rate adjustment for dates of service on or after July 1, 2012.  This increase results from additional Medicaid funding included in the Commonwealth’s 2012-2014 Biennium Budget.

DMAS plans to take the existing rates on file (operating, capital and NATCEPS combined) and increase the current rate amounts by 2.2% consistent with language in the Budget.  These updated interim rates will be in effect until the next settlement which establishes rates for periods after July 1, 2012.  During that cost report settlement, rates will be further adjusted to reflect additional provisions included in the budget – cost ceilings (direct and indirect) will be raised an additional 1.0% over the 2.2% inflation adjustment and Fair Rental Value capital payments will be adjusted for an increase in the rental rate floor to 8.5%.