MaineCare Updates on COLA and Service Provider Tax Unwinding

• By: Angela Westhoff
• On: 12/12/2024 15:08:05
• In: Legislative/Government Affairs

Earlier this month, the DHHS Office of MaineCare Services announced that due to current budget projection limitations, the Department will only be applying COLAs on January 1, 2025, that are required by federal law. Other COLA adjustments will be reliant on additional appropriations by the legislature. MHCA and other advocacy organizations will be advocating that the legislature take immediate action to address this issue. This change would impact residential care facility rates.

MHCA has confirmed with the Department that that nursing home rates under the new model to be implemented on 1/1/25 will NOT be impacted.

Also, as has been previously announced in a September notice, the Department will remove documented add-on amounts associated with the service provider tax for MaineCare reimbursement, effective January 1, 2025.

In MHCA's communication with the Department on this matter, we have been told that they are “removing the 6% from the direct care inflation only and the rest of the rates will remain unaffected by the service provider tax repeal.”

Updated fee schedules are available on the rate setting page of the Health PAS online portal. Please refer to the September notice for a list of affected service codes and the original frequently asked questions (FAQ) document for more information. An updated FAQ to reflect recent provider questions has been posted here.  

For questions, please contact Amanda Lee, MaineCare's Rate Setting Coordinator. 

Staff contact: awesthoff@mehca.org