State Fiscal Year (SFY) 2024 Rate Letters for Nursing Facilities (NFs) and Residential Care Facilities (RCFs)

Jul 10, 2023

MaineCare will increase reimbursement rates for certain services effective July 1, 2023, through a Cost-of-Living Adjustment (COLA), in alignment with Maine P.L. 2021 ch. 639. The COLA is equal to an increase of 4.69% above the currently established rate(s), which is based on the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for nursing homes and adult day care services as required under Maine P.L. 2017, ch. 460 (see 22 MRSA §1708, sub-§3, ¶F for NFs).  

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 67	Nursing Facilities
Section 97	Residential Care Facilities, PNMI Appendix C

 

In addition, the rate adjustments for RCFs also include updates to use fixed costs from the latest audited cost reports. 

Lastly, MaineCare continues to provide an add-on rate, as needed, per the requirement under 22 M.R.S. §7402 to enable providers to cover labor costs for essential support workers of at least 125% of the minimum wage. This add-on has been recalculated to account for the new increased direct care rates. Since the direct care rate increase from the COLA also contributes to ensuring that the rate meets the 22 M.R.S. §7402 requirements, providers require a proportionally lower amount from the add-on, and will see a slight reduction in the add-on amount, accordingly.  

Rate letters will be available in the near future. Watch for a follow up message to confirm the exact date. 

If you have any questions regarding rate letters, please contact Rate Setting directly by emailing Dwayne Parsons.