The alert is to update you from our Client Alert sent 2/17 New SNF Medi-Cal Rates- New Proposed Methodology.
Recently the state of California approved a two-year extension of AB-1629 beginning this August 2020 and ending December 2022. This system overall is good financial news for skilled nursing providers with about $900 million is being allocated to providers over the next two years.
Points of Interest:
- State to transition to calendar year rate period vs. a fiscal year-end
- 5-Month transition rates effective August through December 2020
- Rate Increases:
- August 2020: 3.62% rate increase
- January 2021: 3.5% rate increase
- January 2022: 2.4% rate increase
- Peer group re-allocation from currently 7 peer groups to 12 per groups
- Change to 95th percentile cap for Direct Labor and In-Direct Care rate component
- Rather than as originally proposed to include quality indicators in the new rate system, the current quality program (QASP) add-on remains intact as under the current law
- About $84 million ($6 for the past payment errors) to be distributed in 2021 and 2022
- More oversight and authority to the State to collect on unpaid Quality Assurance Fees
- Increased penalties for not complying with 3.5/2.4 nursing ratio requirements
For those who are current cost report clients to Mueller Prost, our Reimbursement Team will be revising our Rate Estimates to reflect these new changes and re-issuing these to you in the coming few weeks. Further, we will be reaching out regarding interim rate projections for the 2020 year. If you are not a current cost report client but would like us to preform a rate estimate for you due to these new changes, please contact me.