DMAS has released the Medicaid rate memo for state fiscal year 2021, which begins July 1, 2020. The memo states that the rates are available online, but as of this article, they had not yet been posted. 2021 rates will be approximately 2 percent higher than 2020 rates in the aggregate. 

As you know, 2021 rates reflect the first year of a new rebasing cycle, so individual facility rate effects will vary significantly. The 2 percent is higher than we had previously expected due to inflation being adjusted upward based primarily on the wage survey data facilities provide to DMAS.

As you also know, VHCA-VCAL had been successful in advocating before the General Assembly in mitigating a substantial amount of the negative rebasing impact. However, in response to the effects of COVID-19 on state revenue projections, the rebasing fix, among many other spending items, was “unallotted.” This does not mean it was eliminated, but rather, it will take further action by Gov. Ralph Northam and General Assembly to authorize the approved spending. VHCA-VCAL is advocating on members’ behalf to have the funding approved  as soon as possible.