DMAS Updates Cost Ceilings

VHCA (5/22/2008)

The Department of Medical Assistance Services (DMAS) has provided VHCA with a worksheet containing the updated July 1, 2008 Medicaid cost ceilings which utilize the 2008 inflator of 2.8%.  This information, which should be posted on the DMAS website within the next several days, is now available here.

Please keep in mind that the ceilings are rebased as of July 1, 2008 and do not reflect any adjustment for the Medicaid funding cut imposed by the General Assembly for state fiscal year 2009 (beginning July 1, 2008).  The adjustment to rates attributable to the budget cut is made as the final step in the rate determination calculation.  The budget reduction factor is 1.329% for days paid beginning July 1, 2008 through June 30, 2010.

Cost ceilings are applicable to both direct care and indirect Medicaid costs.  The direct care cost ceilings are divided into three geographic peer groups; Northern Virginia, Richmond and rest of State.  Indirect cost ceilings are split into three groups; one for Northern Virginia facilities, a second for facilities with 60 beds or less and the third for facilities with 61 or more beds.

Members with questions may contact Hobart Harvey at hobart.harvey@vhca.org or 804.212.1695.