Cost-of-Living Adjustment (COLA) for Residential Care Facilities Delayed

• By: Angela Westhoff
• On: 09/25/2025 08:30:51
• In: Legislative/Government Affairs

Earlier this week, DHHS announced it will temporarily delay implementation of the previously announced 1.0% COLA direct care rates for Residential Care Facilities, Section 97- Appendix C, that will be retroactive to July 1^st. The Department requires additional time to make these updates and anticipates implementation of new rates on October 1, 2025.

Billing Guidance for Dates of Service July 1, 2025, through September 30, 2025

Providers are responsible for adjusting claims already billed. The Department recommends adjusting claims with the oldest dates first, to avoid 120-day adjustment timely filing edits. For additional billing guidance when adjusting or reversing claims, please see the How to Adjust Claims for Retro Rate Increases (PDF) document.

Updated RCF rate letters are available on the secure Health PAS Online Portal. For questions on these rates, please contact the individual listed on the rate letters.

For questions on billing guidance, please contact your Provider Relations Specialist.

Staff contact: awesthoff@mehca.org