Governor Signs Supplemental Budget Bill

To mitigate current workforce and financial challenges, HCAM has been advocating for additional financial resources including an increase to the current Medicaid interim rate. We are pleased to report that the Michigan Legislature passed, and Governor Witmer signed, a supplemental appropriations bill that increases the interim rate from 2.5% to 4.5%. The bill is now Public Act 5 of 2023.

The total appropriation is $63 million, which includes an increase to the QAS to correspond with the rate — funding sources are $44 million federal match, $14.5 million General Fund, and $5 million from QAS. Thank you for your continued engagement in contacting state legislators to help in these efforts.

The increase will be retroactively applied starting January 1, 2023. The Michigan Department of Health and Human Services (MDHHS) has drafted the State Plan Amendment for submission and approval from CMS. We will communicate with the department to move forward as quickly as possible in seeking CMS approval and distributing funds.

In addition, last year the state allocated $67 million to recruit, retain and train nursing facility employees. Those funds were not released. Instead, the Workforce Retention and Recruitment Grant process will start again. MDHHS will issue criteria for distributing the funds, and we will work with the department to assure that this entire process occurs as quickly as possible.

While the funding in P.A. 5 is helpful, we know providers will need additional support until 2022 cost reports are audited and settled. We have assurances from MDHHS that filed 2022 cost reports will be used to establish interim rates for FY 2024, and audited reports will be applied to the final FY 2024 rate formula. 

We will update you as we continue to work closely with the administration on these issues.