2020 Session

Budget Amendments - SB30 (Floor Approved)

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Adjust Nursing Home Rates for Rebasing Impact

Item 313 #16s

Item 313 #16s

First Year - FY2021 Second Year - FY2022
Health and Human Resources
Department of Medical Assistance Services FY2021 $9,134,312 FY2022 $9,390,073 GF
FY2021 $9,134,312 FY2022 $9,390,073 NGF

Page 294, line 18, strike "$15,939,731,997" and insert "$15,958,000,621".
Page 294, line 18, strike "$17,038,007,934" and insert "$17,056,788,080".

"GGGG.1. The Department of Medical Assistance Services shall amend the State Plan for Medical Assistance to modify reimbursement for nursing facility services to utilize "total days" as reported on 2017 cost reports in determining peer group prices in the rebasing of rates for state fiscal years 2021, 2022 and 2023.

2. Effective on and after July 1, 2020, the direct peer group price percentage shall be increased to 108.3 percent and the indirect peer group price percentage shall be increased to 102.5 percent.

3. The department shall have the authority to implement these changes effective July 1, 2020 and prior to the completion of any regulatory process undertaken in order to effect such change."


(This amendment provides $9.1 million the first year and $9.4 million the second year from the general fund and a like amount of federal Medicaid funds to modify nursing home reimbursement. This amendment modifies nursing facility reimbursement by substituting "total days" for the current use of "Medicaid days" due to the unavailability of reliable Medicaid managed care days that is impacting the integrity of the rebasing model for nursing facilities. Total days are not disputed and would be inclusive of all Medicaid days in the fee-for-service program and CCC Plus managed care program, among some other payer days. Further, this amendment increases the peer group adjustment factors to the Maryland levels in order to account for lower cost facilities inappropriately suppressing Medicaid rates for facilities with higher costs. The second year amount assumes inflation at 2.8 percent.)