MaineCare Cost of Living/Part AAAA Adjustments

Dec 02, 2022

MaineCare is increasing reimbursement rates for certain services through a cost-of-living adjustment (COLA) as directed by Maine P.L. 2021 ch. 639 and 22 MRSA Section 7402, as enacted by Maine P.L. 2021, ch. 398, Part AAAA. The COLA will be effective January 1, 2023, and is equal to an increase of 8.24% above the currently established rate(s). 

As required by Part AAAA for the services specified in statute, this increase is keyed to the increase in the state minimum wage established in Title 26, section 664, subsection 1, to ensure that the labor components of rates for these services continue to equal at least 125% of minimum wage.

P.L. 639 further requires that, for all services with base rates determined through a rate study, the Department will provide an annual cost-of-living adjustment effective on a consistent date for services that have not received a rate adjustment within the 12 months prior to the effective date of the COLA. For services also subject to Part AAAA, P.L. 639 ensures that the rate as a whole, rather than the labor component of the rate alone, receives a COLA. P.L. 639 also requires that all services with base rates determined through a rate study, regardless of whether they are subject to Part AAAA, must also receive an annual COLA. Services with an increase to their rate effective within the 12-month period previous to January 1, 2023, will not receive this COLA.  

These COLAs affect rates for eligible services under the following Sections of the MaineCare Benefits Manual (MBM):

 

COLA Rate Adjustments: MaineCare Benefits Manual Section/Title	Services:
Section 12	Personal Care Services
Section 18	HCBS Home, Community & Work Supports
Section 19	Personal Care Services
Section 20	HCBS Home, Community & Work Supports
Section 21	HCBS Home, Community & Work Supports
Section 29	HCBS Home, Community & Work Supports
Section 65	Substance Use Disorder/Intensive Out-Patient
Section 96	Personal Care Services

 

The Department will post the updated fee schedules for the Sections above to the Rate Setting page of the MaineCare Health PAS portal as they are completed.

Please contact Amanda Lee, Rate Setting Coordinator with questions.