Legislature Passes Fiscal Year 2023 Budget (SNF/AL)

The Michigan House and Senate passed the fiscal year 2022-2023 state budget after negotiations with Governor Whitmer. It is expected that Governor Whitmer will sign the budget in the coming days. Included in the budget are two items of note directly impacting association members.

2022-2023 Rate Setting

The final MDHHS budget includes boilerplate language detailing the process for setting the October 1, 2022 rates. The language mirrors the rate setting process used for fiscal year 2021-2022. An interim rate will be established for October 1, 2022 for each facility at 102.5% of the interim rate provided on October 1, 2021. The department will then audit the 2023 cost reports, and use those cost reports to set the final rate for the 2022-2023 fiscal year.

HCAM worked closely with MDHHS and the State Budget Office in 2021 to establish a new rate setting process that accurately captures the increasing costs of the pandemic – our advocacy efforts proved beneficial in ensuring the process continues for the next fiscal year.

Direct Care Worker Wage Increase

The budget includes funding to continue the current direct care worker wage increase of $2.35 per hour for the 2022-2023 state fiscal year – extending the current program through September 2023 for employees of nursing facilities, licensed adult foster care homes and licensed homes for the aged that provide Medicaid funded personal care services.

If you have questions about the budget, you may contact Pat Anderson at [email protected] or Richie Farran at [email protected].

You may find the budget and summary documents by clicking HERE.