MedicaidReimbursementMedium impact
MSA 20-39
Michigan Medicaid - MDHHS·MI·Provider Bulletin
Effective date
Apr 1, 2020
We identified it
Jun 20, 2026
Summary
Michigan Medicaid restored the Rural Access Pool (RAP) but excluded Critical Access Hospitals (CAHs) from RAP distributions starting State Fiscal Year 2021. A new CAH-specific OPPS reduction factor was established at 75.2% effective April 1, 2020, which increases reimbursement rates for CAHs compared to the standard OPPS reduction factor.
Action Required
Immediately: Critical Access Hospitals billing Michigan Medicaid must verify their facility type designation in billing systems. Update reimbursement calculations to reflect the new 75.2% OPPS reduction factor (increased from previous rates). Monitor www.michigan.gov/medicaidproviders for future reduction factor updates as MDHHS may adjust rates to maintain budget neutrality.