On May 8 the Department of Medical Assistance Services (DMAS) issued a provider memo on the new direct and indirect operating base rates and an updated Resource Utilization Group (RUG) grouper version for nursing facility services.

According to the memo, the rates effective July 1, 2017 reflect rebasing and fully transitioned 100% price-based rates. Rate calculations for state fiscal year (FY) 2018 include: full inflation, an increase in the adjustment factors and updates to peer groups. The memo also addresses the transition from the RUG-III Grouper 34 to the RUG-IV Grouper 48 used for risk adjusting direct rates and billing changes with the new grouper.

This memo serves as the official notification that the rates for FY18 are posted on the DMAS website.