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Nursing Homes to Receive Medicaid Reimbursement Increase and $30 Million in One-Time Funding

Tim Rave, CEO of SDAHO made the announcement on Monday, March 28 that South Dakota State Lawmakers approved a $30 million one-time Medicaid reimbursement increase, for nursing homes, utilizing an additional $20 million in one-time federal matching funds.

When state-lawmakers wrapped up the general session on March 10, lawmakers approved a 6% increase for Medicaid reimbursement rates and $10.2 million in one-time general funds for nursing homes. However, as lawmakers returned to Pierre for VETO Day, they learned that the original $10.2 million one-time general funds could be increased to a total of $30 million, equaling a 20.3% ONE-TIME funding increase.

Both the House and Senate approved Senate Bill 213 that provides the additional federal dollars. The $30 million will be used for a temporary increase on the FY 22 base rate.  Starting on July 1, 2022, the FY23 base rate will be the FY22 base rate + 6% inflationary increase that was passed.

SDAHO’s Advocacy team has worked hard for the entire run of the 2022 legislative session, including pushing for an increase for Medicaid reimbursement rates for nursing homes and leveraging one-time federal grant funds. SDAHO CEO, Tim Rave applauded the South Dakota Legislature for approving both the Medicaid reimbursement rate increase and the allocation of one-time federal funds, members and the SDAHO advocacy team for their work during the entire legislative session. “Increases of this magnitude do not happen by chance, this was a process that started at the beginning of session and is a collaborative effort between the advocacy team, members, and lawmakers.”

To learn more about SB 213 or to view the Joint Committee on Appropriations Letter of Intent.



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