Update on Increased Payment Rates for Long-Term Care Facilities and Home- and Community-Based Service Providers

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Update on Increased Payment Rates for Long-Term Care Facilities and Home and Community-Based Service Providers

The Department is working in close collaboration with the Governor’s Office and the legislature to expedite implementation of the rate increases for long-term care facilities and home and community-based service providers announced last week in a press release by Governor Mills and in a DHHS blog post.   

The purpose of these adjustments is to ensure that the labor components of rates are equal to at least 125% of minimum wage, consistent with the intent of Part AAAA of the biennial budget, for numerous long-term care and home- and community-based services. The rates are further calibrated to reflect actual changes in the cost of living over the past year and provide additional support for the wages of all staff providing these services. 

Given the importance of these rate increases, and following discussion with the Legislature, the Administration publicized these proposed increases in advance of the release of the Governor’s full budget proposal. Funding for the further increases to these rate adjustments is thus still subject to legislative approval, and the adjustments also require state rulemaking and approval by CMS. Due to this unique situation, we are still working out the details and timing of implementation of the rate adjustments. Please note, however, that there is broad commitment to working together to effectuate these increases as soon as practicable. Once implemented, the increases will apply to all dates of service from January 1, 2022 forward. 

The Department will send out a communication regarding implementation dates for these adjustments as soon as possible.  This communication will include instructions on how to adjust claims retroactive to January 1, 2022. 

In the interim, the Department is working to finalize an e-message indicating specific fee schedules, where applicable, and additional detail associated with these adjustments.  The Department will also be communicating in the near future about forthcoming monthly supplemental “ramp” payments specified under Part AAAA of the budget for Sections 2, 17, 26, 28 and 65. 

Please contact your Provider Relations Specialist with questions.