MDHHS Proposes Medicaid Interim Payment (MIP) Program Termination

The Michigan Department of Health and Human Services (MDHHS) issued Michigan Medicaid Bulletin 5370-81-05 to announce proposed changes to the Medicaid Interim Payment (MIP) Program. The bulletin informs nursing facilities that MDHHS plans to end the MIP program September 30, 2024. Effective October 1, 2024, nursing facilities will be required to submit all facility claims for services rendered in a timely manner to ensure timely reimbursement.

Currently, nursing facilities can select one of two payment methods:

• Payment directly related to claims submitted to and processed by CHAMPS (which the vast majority of nursing facilities use), or
• Enrollment in the Medicaid Interim Payment (MIP) Program (rarely utilized).

Providers enrolled in MIP receive a pre-determined dollar amount in cycled payments. MIP payments represent the expected dollar amount that Medicaid would have paid to the nursing facility in claims reimbursement during a period of time. The MIP payment calculation is based on historical approved billings, current reimbursement rate and claims data. A reconciliation is done at the end of the provider’s fiscal year. Providers may send comments on this proposed policy change to [email protected] by August 5, 2024.