Care Center Rate Notices Likely to Arrive after Jan. 1

Posted on December 1, 2022 by Jeff Bostic

As Jan. 1 approaches, it appears likely that rate notices will not arrive for most care centers by the start of the new rate year. We expect that the rate increase for most care centers will be significant this year because the cost report being used (year-end Sept. 30, 2021) reflects a drop in occupancy and the considerable increase in costs that happened during the pandemic. Therefore, it is time for providers to consider giving notice to private pay residents about increases on Jan. 1.

Due to rate notices coming out later than the Nov. 15 statutory due date, providers do not need to give notice to private pay residents 30 days before the increase. However, for providers who want to provide notice in the near term, the Long Term Care Imperative has developed some tools that will help members work through that complicated process:

• A chart about how the rate notice process is expected to work for 2023 and recommended notice practices
• A sample rate letter to give to private pay residents soon to let them know to expect an increase on Jan. 1
• A sample rate letter to give to private pay residents before Jan. 1 to let them know the rate that will be charged and that there will be a settle-up process
• A notice to give to private pay residents once a rate notice is received from DHS

Care centers ready with their rate estimates may want to use letters one and two as their initial notice soon. In some cases, Twin Cities Metro care centers may not need to do an estimated rate if they get a rate notice before Jan. 1. As a result, they may choose to wait rather than notify of an estimated rate. Providers who have not done their own estimates may want to work with their accounting firm to have those ready, so they can give notice of exact rates to their private pay residents.

TAGS: DHS, Rates, Care Centers, Nursing Home, VBR