Reminder: MDHHS Offering Initial Settlements for Fiscal Year 2023

As a reminder, the Michigan Department of Health and Human Services (MDHHS) will offer initial settlements for FY 2023, as they did for FY 2022, with some differences noted below. Providers must request initial settlements from DARS by August 2. 

FY23 Initial Settlement Plan

For FY23 cost reports, MDHHS will offer FY23 initial settlements. There will be no option for modified/early initial settlements. FY23 initial settlements:     

• Will use the updated Variable Cost Limit.
• Will be paid at 100%.
• Must be requested by August 2, 2024, through [email protected].
• 2023 cost reports are due by May 31, 2024 — MDHHS indicated that they will process initial settlements on a first-come, first-served basis.

Revised FY22 Initial Settlement Plan

MDHHS will offer a revised FY22 initial settlement option for October 1, 2022-December 31, 2022, to reflect the updated VCL. Revised FY22 Initial Settlements:

• Will be paid at 100%.
• Must be requested by August 2, 2024, through [email protected].