Medicaid Rates Changed for More Than 130 Providers When State Recalculated FY 2025 VCL

HCAM recently communicated with the Michigan Department of Health and Human Services (MDHHS) regarding an error in calculating the State FY 2025 Variable Cost Limit (VCL) and Classwide Average for Class 1 and Class 3 facilities. 

This calculation error created a VCL that was lower than the actual VCL, which caused inaccurate 10/1/24 Medicaid rates for providers who are at or above the VCL.

MDHHS estimates that more than 130 providers were affected. New rate letters were issued to those providers the week of September 23 via File Transfer. Providers should access MILogin and enter the CHAMPS application to view them. The reimbursement rate calculation and notice are under the “Archived Documents” section for each provider under the provider’s National Provider Identification (NPI) number. Questions? Please email HCAM’s Mike Batts.