CurrentNorth Dakota Department of Health & Human ServicesPolicy 23-0037

Adjustment Factors for Direct Care, Other Direct Care and Indirect Care Costs

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This policy establishes annual adjustment factors used to update historical costs and cost limitations for direct care, other direct care, and indirect care. It applies to North Dakota Medicaid reimbursement and excludes property costs from adjustment.

Policy Summary

PayerNorth Dakota Department of Health & Human Services

PolicyAdjustment Factors for Direct Care, Other Direct Care and Indirect Care Costs

Policy CodePolicy 23-0037

Change TypeMaterial update

Effective DateJanuary 1, 2024

Next Review DateN/A

Key ActionApply the applicable annual adjustment factor when adjusting historical direct care, other direct care, and indirect care costs and their limitations.

SourceLink

POLICY UPDATE CHANGES

For the rate year beginning January 1, 2024, the maximum adjustment factor is 3.2 percent.

The document identifies revised January 1, 2024 limit rates for direct care, other direct care, and large-facility indirect care categories.

2%2020 adjustment factor

2.5%2021 adjustment factor

4.5%2022 adjustment factor

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CurrentNorth Dakota Department of Health & Human ServicesPolicy 23-0037

Adjustment Factors for Direct Care, Other Direct Care and Indirect Care Costs

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Sign up for North Dakota Department of Health & Human Services Policy 23-0037 alerts

Get alerted when Policy 23-0037 changes without checking for updates manually.

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Policy Summary

PayerNorth Dakota Department of Health & Human Services

PolicyAdjustment Factors for Direct Care, Other Direct Care and Indirect Care Costs

Policy CodePolicy 23-0037

Change TypeMaterial update

Effective DateJanuary 1, 2024

Next Review DateN/A

Key ActionApply the applicable annual adjustment factor when adjusting historical direct care, other direct care, and indirect care costs and their limitations.

SourceLink

POLICY UPDATE CHANGES

For the rate year beginning January 1, 2024, the maximum adjustment factor is 3.2 percent.

The document identifies revised January 1, 2024 limit rates for direct care, other direct care, and large-facility indirect care categories.

2%2020 adjustment factor

2.5%2021 adjustment factor

4.5%2022 adjustment factor

2024 Cost-Category Limit Rates

For rates effective January 1, 2024, limit rates are established for the Direct Care, Other Direct Care, and Indirect Care cost categories using adjusted historical costs for the report year ended June 30, 2023.

Applies to all facilities except nongeriatric facilities for individuals with physical disabilities and units within a nursing facility providing geropsychiatric services described in Section 5 - Exclusions.
Adjusted historical costs for the report year ended June 30, 2023, must be used to establish rates for all facilities in the Direct Care, Other Direct Care, and Indirect Care cost categories; established rates must be ranked from low to high for each cost category.
Direct Care cost category limit rate: $291.06.
Other Direct Care cost category limit rate: $38.69.
Indirect Care cost category limit rate for large facilities: $105.70.
Indirect Care cost category limit rate for small facilities: $108.00.

Annual Adjustment Factors and Limit Rates

Adjustment Factor

2020 adjustment factor2%

Adjustment Factor

2021 adjustment factor2.5%

Adjustment Factor

2022 adjustment factor4.5%

Adjustment Factor

2023 maximum adjustment factor3.75%

Application Rules

Billing Rule

Apply annual adjustment factors

Use the applicable annual adjustment factor to adjust historical direct care, other direct care, and indirect care costs, as well as the limitations for those cost categories. For the rate year beginning January 1, 2024, the maximum adjustment factor is 3.2 percent.

Billing Rule

Exclude property costs

Do not use the annual adjustment factor to adjust property costs.

Billing Rule

Apply category limit rates

For applicable facilities, use the January 1, 2024 limit rates for the applicable cost categories. The rates are $291.06 for direct care, $38.69 for other direct care, $105.70 for indirect care in large facilities, and $108.00 for indirect care in small facilities.

Policy Summary

PayerNorth Dakota Department of Health & Human Services

PolicyAdjustment Factors for Direct Care, Other Direct Care and Indirect Care Costs

Policy CodePolicy 23-0037

Change TypeMaterial update

Effective DateJanuary 1, 2024

Next Review DateN/A

Key ActionApply the applicable annual adjustment factor when adjusting historical direct care, other direct care, and indirect care costs and their limitations.

SourceLink

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