Maryland's proposed 2013 budget and its effect on Medicaid reimbursement for long term care providers
Feb 21, 2012
Governor O'Malley recently presented a proposed budget for Maryland's 2013 fiscal year. The budget includes numerous items that will affect Medicaid reimbursement for long term care providers.
Highlights of the budget for long term care providers
Here are the long term care-related highlights from the proposed 2013 budget, and how they will affect Maryland long term care providers if the budget is approved by the General Assembly before the legislative session ends in April:
- There will be a 1 percent increase in Medicaid rates for skilled nursing facilities. One percent of the average Medicaid rates will result in an increase of just over $2 per patient day (PPD).
- The quality assessment (QA) rate for skilled nursing facilities will increase from 5.5 percent to 6 percent of operating revenues. This will cause the current $19.94 rate to increase by about $2. This QA tax is assessed on non-Medicare days. Funds generated from this increase -- estimated to be about $11 million -- will return to State General Funds.
- The Medicaid bed hold (hospital leave days) reimbursement will be eliminated.
- Reimbursement for the additional costs of taking care of patients with communicable diseases (CDC) will be discontinued.
If the budget is approved, these reimbursement changes will go into effect July 1, 2012. Note that the legislature only has the power to reduce (and not increase) the proposed budget for Medicaid.
Email