MedicaidReimbursementHigh impact
Expiration of the 1% Increase in HSCRC Public Payor Differential
Maryland Medicaid·MD·Hospital
Effective date
Jul 1, 2024
We identified it
Jun 20, 2026
Summary
Effective July 1, 2024, Maryland Medicaid reduced the HSCRC public payer differential from 8.7% to 7.7%, decreasing Medicaid Fee-For-Service reimbursement to 92.3% of charges. HealthChoice MCO SAAC discounts also decreased from 6.7% to 5.7%, resulting in MCO payment at 94.3% of charges. These changes apply to inpatient claims with discharge dates on or after July 1, 2024, and outpatient claims with service dates on or after July 1, 2024.
Action Required
By June 30, 2024: Billing team must update all billing system reimbursement tables and fee schedules to reflect the new Medicaid payment rates (92.3% for FFS, 94.3% for MCOs). Verify that claims submitted on or after July 1, 2024 calculate reimbursement at the reduced rates. Update any internal revenue cycle tracking and contract documentation. Notify all providers and billing staff of the rate reduction to prevent claim submission errors and revenue impact analysis discrepancies. Failure to update rates will result in underbilling and revenue loss.