Providers report recent costs to Montana’s health department, which compares them with Medicaid rates and reports to lawmakers when funding allows.
The department must use a standard format to collect revenue and expense information from providers in several service areas, including mental health and long-term care.
If the legislature provides money for the work, the department must compare Medicaid rates with provider costs and share information to support budget requests for rate changes.
The department receives $600,000 from the general fund and $600,000 in federal matching money for the report during the two-year budget period beginning July 1, 2025.
The department must set up a standard process for collecting provider cost reports. The process covers adult and children’s mental health, substance use, developmental disabilities, and senior and long-term care services funded through Medicaid, state money, or other identified sources. The department must identify providers who must report and those who are exempt. The department must consult providers on the report format and protect their cost data. Providers must report costs from their most recent fiscal year. The department must update base-year cost data at least once every four years, but no more than once in any two-year period.
The department must report how current Medicaid rates compare with provider costs. The report covers rates for providers included in the cost-reporting process. The department must consider provider reports and other sources, including claims, federal data, and comparisons with other states. The report must support budget requests when rate changes are needed. The department must provide a report at least every four years. The first report is due September 1, 2026.
The law sets aside money for the department to develop the rate report. The money goes to the Department of Public Health and Human Services for the report. The federal special revenue serves as matching funds for the department. The appropriations cover the biennium beginning July 1, 2025.
No hearings or votes scheduled.