2004 Medicaid Limits Established
The Medicaid Rate Setting Unit has completed
its calculation of the reasonableness limits that will be used in
generating Medicaid rates effective July 1, 2004. The most startling
result is the miniscule increase in the reasonable hourly limit for Aides.
Although the RN limit increased by 6.2% and the LPN limit increased by
6.5%, the Aides limit increased by less than 1%.
The Other Administrative limit showed a significant
increase of 8.5%. This is the category in which liability insurance is
reported. Other General Services (landscaping, waste management, security,
pest control and related areas) increased by 16%. The only decrease was in
the area of non-legend drugs.
Average facility occupancy remained at 91% which was
the same as last year.
The inflation add-on that will be used in developing
July 1, 2004, rates is 2.81%. This is somewhat higher than the July 1,
2003, add-on which was 2.42%. Medicaid uses indices that are not specific
to health care in developing the inflation add-on which is why this factor
is so much lower than the actual cost increases experienced by the
For assistance in Medicaid cost reporting and
reimbursement issues, contact
Health Care Resources.