VHCA announcement of FY17 Virginia Medicaid Rates

With the start of the Commonwealth’s new fiscal year (FY) on July 1, new Medicaid reimbursement rates for dates of service on or after July 1 will begin.  For FY 2017, rates were increased for inflation at 0.51% relative to FY 2016 rates.  FY 2017 also represents the final year of the transition from cost-based rates to price-based, with price-based now representing 75% of the blended rate.

For FY 2018, which will begin July 1, 2017, rates will be fully price-based and will be rebased.  As previously reported, the two year (2017 and 2018) impact of the inflationary adjustments contained in the 2016 Appropriations Act represents  approximately $34 million in additional Medicaid funding for nursing center care.