Governor Noem’s Budget Proposes 2.5% Inflationary Increase for Medicaid Providers Starting on April 1, 2019.
Gov. Kristi Noem presented her first state budget proposal to the Legislature as governor Wednesday, Jan 23. The fiscal year 2020 budget recommendations will fund necessary state government services and special appropriations for the fiscal period beginning July 1, 2019 and ending June 30, 2020.
The governor reiterated her commitment to fiscal discipline, no new taxes, seeking efficiencies, and governmental transparency. In addition, the Governor’s budget did not build any remote-seller tax growth into the budget recommendation for fiscal year 2020.
The budget proposal put forth by Governor Noem will include for the provider community as highlighted under:
Caring for our Citizens
Provider Rate Changes
- $3.8M one‐time plus 2.5% provider inflation + targeted inflation (April 2019 thru June 2019)
- $5.8M ongoing plus 2.5% provider inflation (For an approximate 5% increase to nursing homes) targeted inflation (July 2019 thru June 2020)
All providers such as hospitals, physicians, and nursing homes will receive a 2.5% Medicaid inflationary increase starting April 1, 2019. It is important to note the April 1, 2019 – June 30, 2019 increases will be funded using the one-time money of $3.8M to raise the base earlier than the normal July 1st start date. To clarify, beginning July 1, 2019, the base increase will be 2.5% for all providers, plus an additional $5.8M in ongoing funds, targeted to nursing homes.
- $5.0M one‐time for Nursing Homes: The Nursing Home Innovation grant will be considered between several state agencies to partner with providers. Topics included Assisted Living Rate Tiers, Respite Care, and Home and Community Based Services
- $1.0M one‐time for Primary and Prenatal Care: Group Prenatal Care, and Telehealth programs
Improving Public Safety
- $4.6M Confronting Meth Epidemic
- $490k Mental Health
- $4.6M State Radio
Kickstarting the Economy
- Expanding Rural Broadband: $5.0M one-time development grant
During, the fiscal year 2019 General Bill Amendments Gov. Noem noted the Care Coordination Agreements with IHS with a general fund savings of $6.8M. Also, from the fiscal year 2019 Emergency Special Appropriations, Rural Healthcare Recruitment Assistance Programs is funded at $979,849.