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KDOA's Message on Rate Cuts
Payment Reduction
Effective with dates of service on and after January 1, 2010, payments
issued by the KHPA Medical Plans will reflect a 10 percent reduction due
to budget shortfall requirements as directed by the governor's office.
This payment reduction is not a reduction on the current KMAP fee
schedule but a reduction on the final payment amount. Additional
information will be published in the Kansas Register and in future KHPA
communications.
This reduction includes the nursing facility program. Beginning with dates of service for January
1, 2010, providers will see a 10% reduction to the net payment amount determined for each claim. The reduction will be imposed after patient liability has been subtracted.
KHCA Notes
We spoke with Secretary Kennedy today about this message. And I will attempt to simplify what was said above...
You will still receive your normal per diem, the resident liability will be subtracted, the 10% reduction will be taken on your net amount.
Example; Daily Rate $ 125.00 (case mix adjusted)
X 30 days
__________________
$3750 total reimbursement to facility
- 700 resident liabilty (obligation)
__________________
$3050 submit to state for reimbursement
X .90 reduction in payment
___________________
$2745 amount paid to facility by state which reflects 10% adjustment
According to Secretary Kennedy this reflects a reduction in payment instead of a reducation in overall rates. We are working with our reimbursement consultants to evatulate the impact of this methodology.
This will be the same methodology for NF/Mh's also.
Let us know if you have any questions. cluxem@klhca,org
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