DMAS Publishes Updated Ceilings

VHCA (5/8/2009)

As a follow-up to last week's article addressing the revised Medicaid update (inflation) factor recently announced by the Department of Medical Assistance Services (DMAS), the updated cost ceiling tables are now available on the DMAS website.

The update factor will remain at the current 2.8% level used for the 2008 inflator.  The 2.8% update factor for 2009 will apply to rates for provider fiscal years ending 12/31/2009 through 11/30/2010.  Providers should keep in mind that, due to recent state budget cuts, the update factor will not be included in Medicaid rate calculations for days of service occurring in state fiscal year 2010 (July 1, 2009 through June 30, 2010).  DMAS will not apply inflation adjustments to rates or ceilings during state fiscal year 2010.

When estimating Medicaid payment rates for dates of service subsequent to July 1, 2009, members should take into consideration that the 1.329% operating rate reduction in place during SFY2009 will be removed as of July 1, 2009.  On a related note, the VHCA Payment for Services Committee is working to make available to members a simple Medicaid rate projection model.  We hope to provide an update on that initiative in next week’s eMemo.