MedicaidReimbursementMedium impact
Fiscal Year 2024 Medicaid Rates for Administrative Days
Maryland Medicaid·MD · Critical Care, Psychiatry·Provider Transmittal
Effective date
Jul 1, 2023
We identified it
Jun 20, 2026
Summary
Maryland Medicaid updated payment rates for hospital administrative days effective July 1, 2023. Three rate categories now apply: $589.14/day for psychiatric patients awaiting residential placement, $853.26/day for ventilator patients no longer requiring hospital-level care, and $320.34/day for all other qualifying administrative day patients. Billing teams must apply the correct rate based on patient classification.
Action Required
By September 28, 2023: Billing team must update billing system and fee schedules to reflect the three new Maryland Medicaid administrative day rates: $589.14 (psychiatric/placement), $853.26 (ventilator), and $320.34 (all others). Update claim submission logic to correctly classify patients into the appropriate rate category based on clinical documentation. Ensure providers document patient status (psychiatric placement pending, ventilator-dependent, or other) in encounter records to support correct rate application. Verify backdated claims from July 1, 2023 forward are billed at the new rates; contact Provider Relations at 410-767-5457 for claims already submitted at old rates. Failure to apply correct rates may result in underpayment or claim adjustment denials.