Increases Expected when MDHHS Calculates QAAP and QMI Rates

The Quality Assurance Assessment Program (QAAP), often referred to as the provider tax, is the Michigan Medicaid assessment that provides funding for the Quality Assurance Supplement (QAS) and Quality Measure Initiative (QMI) programs.

QAAP and QMI rates are re-evaluated annually effective October 1. Rates will change annually based on Medicaid utilization and changes to the Medicaid variable rate paid to providers. The variable rate is the determining factor for the payment amount for the QAS at 21.76% of the variable rate base.

The Michigan Department of Health and Human Services (MDHHS) QAAP and QMI rates effective October 1, 2023, are currently being calculated. HCAM expects to see rate increases of over 20%. For most providers, the increase is estimated to be around $9 per non-Medicare day. The increases in the cost settled Medicaid rates for SFY 22 and SFY 23 are the driving factor for the increase, along with a CMS change on the compliance test for the provider tax program. Additionally, these CMS requirements have caused a restructuring of the previous tier methodology, which assesses small and large Medicaid providers differently.

QMI payments are currently on hold pending MDHHS calculations. The department expects QMI calculations to be completed after December 10. HCAM will share updated QAAP and QMI rates once they are finalized.