July 1, 2014 Medicaid Payment Rates

Senior staff with the Department of Medical Assistance Services have indicated that they intend to publish, during the week of June 2nd, nursing facility payment rates effective July 1, 2014.  This information will likely be communicated via a message to each facility’s GoFileRoom account.  Accompanying the rate schedule will be a Medicaid Memo outlining the transition to price-based Medicaid payment beginning July 1st and a set of slides developed to help educate providers about the new payment system.

Of particular interest is the fact that the rate information will reflect additional funding to address a 1.7% inflation update ($15.7 million) as well as 3.4% for rebasing ($31.2 million) in operating rates.  On average, these increases equate to $8.00 per Medicaid patient day for the fiscal year ending June 30, 2015. These funding increases are contained in the Commonwealth’s Budget which has not yet been finalized and approved due to the standoff over the decision to expand Medicaid coverage in Virginia.