Update on January 1, 2022 Rate Adjustments and Supplemental Wage Add-On for Sections 67 and 97, Appendix C

As Governor Mills announced on December 29, 2021, the Department will be implementing rate increases for Nursing Facilities and Residential Care Facilities (Private Non-Medical Institution, Appendix C) effective January 1, 2022 to:
  • Assist these facilities to pay direct care workers at least 125 percent of minimum wage, in alignment with and utilizing $4.5 million in funding already appropriated under Part AAAA of the biennial budget, and
  • Further assist nursing and residential care facilities with labor costs through the rest of the 2022 Fiscal Year through the reinstatement of a supplemental wage adjustment in the amount of $7.6 million. This add-on component of these rate adjustments is subject to legislative approval.
The Department is seeking certain approvals from the Centers for Medicare and Medicaid Services (CMS) for these rate increases.

The Department is incorporating these increases into its regular January rate letters to these facilities—as a result, the Department plans to issue these letters in February, in order to ensure facility rate letters are inclusive of all rate changes. These rates will take effect retroactive to January 1, 2022; however, they are not yet in effect are being provided for informational purposes only at this time.

For questions regarding these fiscal year 2022 Nursing Facility and Residential Care Facility rate adjustments, please contact Peter Kraut.
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