MMP 26-45

Michigan Department of Health and Human Services (MDHHS) issued Bulletin MMP 26-45 on November 2, 2026, directed to nursing facility providers participating in the Michigan Medicaid program. The bulletin announces a reset of the current asset value upper limit for Class I nursing facilities, effective for the state fiscal year beginning October 1, 2026 and ending September 30, 2027. Implementation is contingent upon approval of a State Plan Amendment by CMS. For FY 2027 (October 1, 2026 through September 30, 2027), the current asset value upper limit is set at $171,500 per bed. Beginning October 1, 2027, the upper limit increase is capped at 4 percent over the prior year and each subsequent year. The reset is authorized by Public Act 21 of 2026 and the funding allocation made available thereunder. The current asset value upper limit is a maximum per-bed dollar amount used to calculate each individual nursing facility's current asset value for Medicaid reimbursement purposes. It is derived from a rolling 15-year history of new nursing facility construction costs, recalculated annually using cost reports from the most recent calendar year and a construction index update. The current asset value floor is set at 30 percent of the upper limit. MDHHS will update the Nursing Facility Cost Reporting and Reimbursement Appendix of the Medicaid Provider Manual to incorporate this policy language. Per-bed tier values for each rate year are posted on the MDHHS website. Public comments on the policy change may be submitted to Kristi Walker at WalkerK32@michigan.gov with the subject line "Current Asset Value Upper Limit."