Service Provider Tax Unwinding for Residential Care Facilities

• By: Angela Westhoff
• On: 09/12/2024 11:16:30
• In: Legislative/Government Affairs

As the Department of Health and Human Services (DHHS) has previously announced, the service provider tax (SPT) for residential care facilities will end on January 1, 2025.

The Service Provider Tax that was created in 2004 and applies to some health providers, among other entities. In alignment with the SPT repeal enacted in P.L. 2023, Chapter 412, Part XXX, the Department will remove all documented add-on amounts associated with the service provider tax for MaineCare reimbursements, effective January 1, 2025.  The Department has indicated this change should have a neutral effect on residential care providers' budgets.

To prepare MaineCare providers for the rate changes, DHHS has compiled a list of affected procedure codes by policy section and a FAQ document that includes some billing guidance.

The Department will post and share the updated fee schedules for affected sections of policy in December.
For questions, please contact your Provider Relations Specialist. 

Staff contact: awesthoff@mehca.org