MDHHS Provider Tax Rates

HCAM met with MDHHS regarding the Quality Assurance Assessment Program (QAAP) and Quality Measure Initiative (QMI) program to review the proposed rates for state fiscal year 2022.  QAAP and QMI programs are calculated twice during the state fiscal year for the periods of October 2021 to March 2022 and for April 2022 to September 2022. 

QAAP rates were computed based on the best available data regarding Medicaid utilization and using the prior year Medicaid rates.  Medicaid rates effective October 1, 2021 have not been released at this time so they will be incorporated in the April recalculation of the tax rates.  A discounted rate for high Medicaid provider (Tier 3) was adjusted downward from those with more than 51,000 Medicaid days to those with more than 43,500 Medicaid days.  This change was needed to maintain the tiered structure to the tax program which has been approved by CMS.  The reduction does reflect the impact of the pandemic on days of care provided to Medicaid beneficiaries.  The change maintains the prior year pool of providers in this tier with a few adjustments.  If your facility is impacted by this change contact Pat at [email protected] to confirm that your facility remained in the tier 3 category.

 The tax rates for this first six months will be:

• Tier 1- Facility with less than 40 beds – $ 2.00
• Tier 2 – Any facility not included in the other tiers – $ 24.15
• Tier 3 – Facilities with greater than 43,500 Medicaid days of care – $ 16.20

QAS monthly payments will be updated once the Medicaid rates are released and retroactively adjusted as needed.  Medicaid will notify providers of the QAS monthly computation and provide your facility with an opportunity to review.  HCAM recommends that each facility review their calculations for accuracy to reflect any unique concerns impacting your facility.  The window to review is generally short about 10 days so watch for the notice regarding the review period.

QMI tax rates have also been recalculated to reflect the various program requirements including the quality stars, customer satisfaction survey and Medicaid utilization.  The basic structure of the QMI program has not changed from prior years and no changes are anticipated at this time.  The payments are based on the first star at $400 and each additional star at $184.32.  MDHHS did not provide a date when these payments would be released.

QMI rates for the first period are:

• Tier 1- Facility with less than 40 beds rate set at $0 per legislation
• Tier 2 – Any facility not included in the other tiers – $ 3.40
• Tier 3 – Facilities with greater than 43,500 Medicaid days of care – $ 2.80

Questions regarding these programs can be directed to [email protected].