Proposal Would Change Medicaid Nursing Facility Cost Report

Posted on November 26, 2018

The Michigan Department of Health and Human Services recently released a proposed policy to modify the way Medicaid nursing facility cost reports are completed for the costs associated with “outstationed” eligibility workers. This policy pertains to costs associated with personnel who determine Medicaid eligibility on-site at nursing facilities. The policy is proposed to take effect March 1, 2019.

Under the new policy, voluntary donations the provider makes to the state, as well as administrative and incidental costs, would continue to be reported on the facility’s cost report and reclassified to the nonreimbursable “Other” cost center. This would ensure the state does not use these costs to calculate nursing facility rates, since the Medical Services Administration (MSA) considers them “non-allowable” costs. This change is being proposed to comply with federal Medicaid regulations.

The MHA encourages hospitals and health systems with nursing facilities to review the proposal and submit comments to the MSA by Dec. 26. Members with questions should contact Jason Jorkasky at the MHA.

Tags: MDHHS, MSA, nursing facility, proposed policy

Posted in: Member News

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