MedicaidReimbursementHigh impact
Fiscal Year 2023 Rate Increase for HCBOW and ICS
Maryland Medicaid·MD · Geriatrics, Palliative Care, Psychiatry·Provider Transmittal
Effective date
Jul 1, 2022
We identified it
Jun 20, 2026
Summary
Maryland Medical Assistance Program (Medicaid) is implementing a 12% rate increase for Home and Community-Based Options Waiver (HCBOW) and Increased Community Services (ICS) providers effective July 1, 2022. The increase includes statutory FY 2023 rates, additional funding from Senate Bill 290, and a temporary 4% increase from the American Rescue Plan Act (FY 2023 only). Updated fee schedules apply to case management, medical day care, assisted living, respite services, and behavioral/nutritional services.
Action Required
By July 1, 2022: Billing team must update all fee schedules in the billing system for Maryland Medicaid HCBOW and ICS services. Replace old rates with new rates for all 14 affected service codes (W0199, W5524, W5525, W0212, W0208, S5102, W5102, W0226, W0227, W0228, W0229, W0221, W1723, W1724). Verify that claims submitted on or after July 1, 2022 reflect the 12% rate increase. Note that the 4% temporary American Rescue Plan Act increase applies to FY 2023 only and may require adjustment after June 30, 2023. Contact Lisa Toland at (410) 767-5792 or Lisa.Toland@maryland.gov with questions about rate calculations or specific service classifications. Failure to update rates will result in underbilling and revenue loss.