Michigan Hospital Association supports proposed Medicaid reimbursement rate increases for providers


Shane Ersland


The Michigan Department of Health and Human Services (MDHHS) has proposed increases to Medicaid reimbursement rates for several provider services in its 2024 budget. 

The proposal awaits approval from the Centers for Medicare & Medicaid Services, but would be effective for dates of service on and after Oct. 1st. The proposal includes a hospital diagnosis-related group rate increase for Level I and Level II designated trauma facilities, which the Michigan Health & Hospital Association (MHA) successfully advocated for. The increase will apply to Medicaid fee-for-service and Medicaid Health Plan hospital payments.

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Laura Appel, executive vice president of government relations and public policy at the MHA, told State of Reform that trauma facilities stand at the ready 24/7, year-round, to care for any patient who needs a high level of care. 

“These facilities have high fixed costs to be staffed and prepared to deliver care, whether it is for one patient or 100 patients in the day. Increased funding is crucial to maintaining the viability of our state’s trauma network so Michiganders anywhere have access to high-level trauma services.”

— Appel

MDHHS’ proposal also includes:

  • A 260 percent increase for transitional residential brain injury services (BIS), with these services reimbursed through a single bundled payment per day that covers both a daily rate for traditional residential care and case management services, and a minimum of 15 hours of weekly therapy. BIS outpatient rates remain unchanged.
  • A 100 percent increase to Medicare base rates for ground ambulance services including reimbursements from the Medicaid ambulance provider assurance assessments for Locality 01.
  • A 10 percent increase for professional anesthesia services represented by current procedural terminology codes 00100 through 01999.
  • A 10 percent increase for home health services billed with healthcare common procedure coding system codes G0151 through G0496.
  • A 7.5 percent increase for professional services provided by physicians, physician assistants, advanced practice nurses, psychologists, clinical social workers, professional counselors, and others. This increase would not apply to professional services that received a previous rate increase such as neonatal, obstetrical, and other services listed. The increase would apply to Maternal Infant Health Program professional services.

“We are appreciative of the rate increases and the recognition of the importance of trauma facilities by the MDHHS. The MHA keeps consistent dialogue with the department and other policymakers to make sure available funding and public policy is maximized to maintain and expand access to healthcare services across Michigan.”

— Appel