Medicaid Rates Effective October 1 and Billing October Services (SNF)

MDHHS continues to work on the Medicaid rates effective October 1, 2021 but has not issued the rates yet. MDHHS will pay the October 2021 Medicaid claims at the prior year rate in effect on September 30, 2021 with an adjustment to be forthcoming. Members should continue to bill Medicaid per normal practice. Once the rates for October 1 are released HCAM will announce how MDHHS will make any adjustment for the difference. 

MDHHS is planning to set rates by increasing the September 30, 2021 rate by 2.5% for both the variable cost component and plant cost component. This increase will be used to establish an interim rate effective October 1, 2021 with a corresponding variable cost limit increase of 2.5%. The updated variable component times 21.76% will become the QAS amount effective October 1. These interim rates will be recomputed based on the audited costs from the facilities fiscal year 2022 Medicaid cost report. If you have any questions about rate setting or billing Medicaid contact Pat at [email protected].