Cost-of-Living (COLA) & AAAA Adjustments for Section 97, Appendix C, Residential Care Facilities (RCFs)

• By: Angela Westhoff
• On: 07/03/2025 10:24:02
• In: Legislative/Government Affairs

On July 3^rd, DHHS sent out a notice with information specific to services provided under Section 97-C. PNMI-Cs will receive a 1% COLA in addition to the 1.95% rate adjustment specific to Part AAAA, which is for the 125% minimum wage for direct care workers. Both will be retroactive to July 1, 2025. This is great news and reflects the strong lobbying effort MHCA was part of along with numerous other direct care advocates.

In alignment with P.L. 2025, Ch. 388, (Part GGG), MaineCare is adjusting the RCF direct care rates to reflect a 1.0% COLA retroactively, effective July 1, 2025.  

Funding for this COLA will be made available to DHHS on September 24, 2025, pending a 90-day waiting period that began with the adjournment of the Legislature on June 25, 2025. DHHS will provide additional noticing when revised rate letters reflecting this 1.0% COLA are posted. 

Please note, this 1.0% COLA is in addition to the planned Part AAAA add-on rate adjustment of 1.95% described in the DHHS June 5, 2025 e-message. As announced on July 2, 2025, the implementation of the 1.95% adjustment is temporarily delayed. 
RCF Billing Guidance 

Providers should bill for services according to the rates provided in their most current rate letter. Providers will be responsible for adjusting affected claims submitted between July 1, 2025, and the implementation date of new rates for each adjustment described above.  

Staff contact: awesthoff@mehca.org