Provider Assessment Refund

As part of NCHCFA’s ongoing work with NC Medicaid and following our agreement with NC Medicaid to reinvest assessment revenues in nursing facility rates, providers will receive refunds of a portion of the provider taxes paid for the period October 1, 2023 through the current time. Providers are also seeing a reduction of the provider tax payment amounts until September 30, 2025. The state of NC has a temporarily increased federal matching percentage because of its decision to expand Medicaid, and as a result, less provider assessment revenue is needed to fund the $31.90 PPD component of the Medicaid rate that was added a couple years ago.   

Member facilities will receive a refund for the three quarters (October 1, 2023 – June 30, 2024) plus a refund for the July 1, 2024 – September 30, 2024 quarter. The amounts refunded will vary depending on Medicaid days volume and actual assessment rate paid (those paying $0 PPD will see no refund). Notices should have been sent by DHB explaining this and informing facilities exactly what their refunds will be.   

Also, the overall provider tax rates will decrease slightly for the October 1, 2024 – September 30, 2025 period. This will have no net impact on Medicaid rates (the tax paid on Medicaid days will be repaid in the rates) and will have a small positive benefit on private pay and commercial insurance days by reducing the tax rates paid on those days.  

Annually thereafter the tax rates may change each October as the state’s federal matching percentage changes—the goal is just to make minor adjustments to continue funding the $31.90 component of the rate.