Effective July 1, 2019, the inflation increase for Medicaid rates for nursing facility services and specialized care for state fiscal year (SFY) 2020 will be 2.9 percent. Department of Medical Assistance Services (DMAS) staff shared the news at last week’s VHCA Payment for Services Committee meeting. DMAS anticipates that new rates will be published no later than May 31 for services on and after July 1, 2019.

The budget passed by the General Assembly and signed by the governor earlier this year had assumed a 3.0 percent inflationary bump. The 2.9 percent increase is very much in line with the expected increase. The annual inflation calculation, prepared by Global Insight, the third-party contracted to produce Virginia-specific inflation rates, is highly dependent on the data nursing centers report through the wage survey, among other things. 

VHCA –VCAL will begin reminding the six CCC Plus Managed Care Organizations that they should prepare their systems for new rates effective July 1, as some plans did not adequately prepare for last year’s update.