MedicaidAdministrativeMedium impact
MMP 24-44: Principal Balance Payment Requirement
Michigan Medicaid - MDHHS·MI · Geriatrics·Claims & Billing
Effective date
Oct 1, 2024
We identified it
Jun 20, 2026
Summary
Michigan Medicaid nursing facilities must now make annual principal payments of at least 0.1% of outstanding loan balance for loans over 4 years issued after October 1, 2019, in order for interest expenses to be allowable. All new loans issued after October 1, 2024 must include this principal payment requirement.
Action Required
Immediately: Nursing facility billing teams in Michigan must review all outstanding loans issued after October 1, 2019 with terms over 4 years to ensure annual principal payments of at least 0.1% of outstanding balance are being made. For new loans after October 1, 2024, negotiate loan terms that include mandatory annual principal payments of 0.1% minimum. Update cost reporting procedures to reflect compliant loan structures or risk having interest expenses disallowed on Medicaid cost reports.