Pennsylvania
Pennsylvania’s Medicaid agency and its state plan are the official source for these rules. This page summarizes them as researched in October 2026; check the state’s own documents, listed under Sources, before relying on them.
At a glance
- Rate method
- Peer-group price
- Case-mix level
- Facility average
- Classification
- Transitioning to PDPM
- Rate updates
- Quarterly
- Managed care (LTC)
- Yes
- Quality program
- CHC NF Quality Incentive
- Paid outside the rate
- Large
- Bed hold
- Hospital and leave
- Published rates
- Rates and build‑ups
- Assisted living
- Limited
- Personal needs allowance
- $60 / month
Overview
- Pennsylvania pays private (nonpublic) homes a peer-group price, set each year from each home's 3 most recent audited cost reports.
- Per diem = resident care + other resident related + administrative + capital.
- Resident care price = 117% of the peer group's case-mix-neutral median cost, times the home's Medicaid case-mix index (CMI, average acuity score) each quarter.
- Other resident related = 112% of median and administrative = 104% of median.
- A home's resident care and other resident related rates are also capped at 103% of its own cost plus 30% of the gap up to the price.
- Capital is a fixed $26,000 per bed times a bond yield, plus audited movable property and real estate tax.
- The total is then multiplied by a statewide budget adjustment factor (BAF), which shrinks every rate so the average fits the money the legislature appropriated.
- For Oct 1, 2026 the BAF is 0.77617: the formula rates are cut about 22%.
- Oct 1, 2026 proposed rates for 576 nonpublic homes: median $253.42/day, range $196.94-$518.62.
- The 14 county-owned homes are paid differently: a frozen per diem times a county BAF.
What matters in Pennsylvania
- Formula rates are cut about 22% by the budget adjustment factor (0.77617 for Oct 2026) to match the appropriation.
- Managed care minimum rates pay private homes about $53 a day above fee-for-service, about 19% more.
- The 14 county-owned homes get managed care minimums about double their FFS rate: median $596.04 versus $285.76.
- Case mix is one PDPM (federal acuity measure) nursing-only average per home, blended in during 2026 and full from 1/1/2027.
- The provider tax is $33.41 per non-Medicare day, but $9.32 for homes with 94%+ Medicaid occupancy and others.
- Hospital bed hold pays one-third of the rate for up to 15 days, and only if occupancy is 85% or higher.
Frequently asked
Does a Pennsylvania home's rate rise when its residents' acuity increases?
Yes, through one PDPM nursing-only case-mix average per home each quarter. A budget adjustment factor of 0.77617 for October 2026 scales all formula rates to match the appropriation.
Does Pennsylvania managed care pay more than the fee-for-service rate?
Yes. Minimum rates pay private homes about $53 a day more, roughly 19%. The 14 county homes have a median minimum of $596.04 versus $285.76 fee-for-service.
How long do Pennsylvania nursing homes wait for final rates?
Rates are published as proposed and paid provisionally. Final rates follow CMS certification of the budget factor amendment; FY2025-26 final rates were published May 9, 2026.
How much is paid outside the posted rate in Pennsylvania?
Large: about 20% of base for private homes and about 100% for county homes, mainly the managed care minimum rate.
What does Pennsylvania Medicaid pay on Medicare coinsurance days?
Lesser-of: Medicaid pays its rate minus Medicare's payment, usually $0, and the home cannot bill the resident.
Does Pennsylvania require a minimum share of spending on care?
No spending floor, but care rates are capped at 103% of own cost plus 30% of the gap to the price.
How is the Pennsylvania nursing home provider tax charged?
$33.41 per non-Medicare day, or $9.32 for county, small, high-Medicaid and certain CCRC homes; not returned as an add-on.
How the rate is set
How the method got here
| Effective | From | To | Change | Headline | Source |
|---|---|---|---|---|---|
| 1996-01-01 | Retrospective cost-based reimbursement | Prospective case-mix price system (peer-group prices x MA CMI, RUG-III) | DHS replaced a 'highly inflationary' cost-based system with the Chapter 1187 case-mix prospective payment system to curb nursing home spending growth. | Prospective case-mix price system replaces cost reimbursement | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
| 2005-07-01 | Case-mix rates paid at the formula amount | Case-mix rates scaled by a budget adjustment factor (BAF) to fit the appropriation | A BAF was added to annual rate setting (with the new nursing facility assessment era), limiting the statewide average rate to what the budget funds. It has been reauthorized ever since. | Budget adjustment factor added to rate setting | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
| 2007-07-01 | County nursing homes paid under the shared case-mix method | County homes paid their prior-year per diem x a county BAF (Ch. 1189); county costs phased out of nonpublic price setting FY2009-10 to FY2011-12 | County-owned homes were split off onto a frozen-rate-times-BAF method and their costs removed from the private homes' price database. | County homes moved to frozen per diem times BAF | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
| 2017-07-01 | One annual BAF (with a possible 4th-quarter adjustment, FY2012-13 to FY2016-17) | A BAF recalculated every quarter for nonpublic homes (first tried in FY2011-12) | The BAF became quarterly, so each quarter's case-mix changes are re-scaled to the same annual target rate. | Budget adjustment factor recalculated every quarter | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
| 2018-01-01 | Fee-for-service nursing home payment | Community HealthChoices managed LTSS (Southwest 2018, Southeast 2019, remaining zones 2020) | Medicaid nursing home residents moved into CHC managed care plans, phased in by zone over three years. | Community HealthChoices managed care phased in by zone | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
| 2023-01-01 | CHC-MCOs negotiating NF rates around the FFS rate | CMS-approved state-directed minimum payment rate = FFS + uniform + facility-specific per diem | CHC plans must pay every NF at least a published minimum rate that sits well above the FFS case-mix rate. | Managed care minimum payment rate begins | https://www.pa.gov/agencies/dhs/resources/for-providers/ltc-p… |
| 2026-04-01 | RUG-III 44-group (v5.12) case-mix index | PDPM nursing component index (Appendix D), blended 25/50/75% through 2026, 100% from 2027-01-01 | Case mix moved from RUG-III to the PDPM nursing component only, phased in over three quarters and kept budget neutral through the BAF. | Case mix moves from RUG-III to PDPM nursing | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
Verified October 11, 2026
Cost basis
- Uses cost reports
Yes
- Cost report
Pennsylvania MA-11 nursing facility cost report, audited by the Department (Myers and Stauffer handles the resident day reports). Medicare cost data are also reported on the MA-11 for the Medicare upper-limit test (55 Pa. Code 1187.71, 1187.109).
- Base year and rebasing
Rebased every year. Each July 1 price year uses each home's 3 most recent audited MA-11 reports issued by March 31, indexed forward (55 Pa. Code 1187.91). FY2025-26 prices used reports with fiscal year-ends from mid-2018 through 2022-23, mostly CY2020-CY2022, indexed to 12/31/2025 (56 Pa.B. 2765). Cost reports under 12 months are excluded. New homes get the peer group price until they have an audited report.
- Components
Component Method Notes resident care (nursing, therapy, medical supplies, OTC drugs, oxygen, social services, activities) Peer group price = 117% of the peer group median of 3-year-average case-mix-neutral resident care cost per day. Neutralized with the total facility CMI from the February 1 picture date closest to each report's midpoint. The price is limited by 1187.107, then multiplied each quarter by the home's Medicaid CMI. 1187.107 limit: the lower of the peer price or 103% of the home's own neutralized cost + 30% of (price - 103% of cost). This keeps low-cost homes below the price. Example: Oct 2026 PDPM prices (CMI 1.0) range from $153.12 (PG1) to $246.46 (PG13a special rehab); PG2 is $164.81 and PG6 $183.75. other resident related (dietary, laundry, housekeeping, plant operation) Peer group price = 112% of the peer group median 3-year-average cost per actual resident day, limited by the same 103% + 30% rule. Not case-mix adjusted. PDPM-era prices range from $56.75 (PG11) to $141.16 (PG13a). administrative Peer group price = 104% of the peer group median 3-year-average cost per day, with days adjusted to at least 90% occupancy. Every home in the peer group gets the price (no own-cost limit). Prices range from $26.10 (PG1) to $63.78 (PG13). capital Not price-based: allowable beds x $26,000 x financial yield rate (Moody's Aaa corporate 60-month average), plus audited major movable property, plus audited real estate tax. Divided by resident days adjusted to 90% occupancy. See capital field. Oct 2026 capital per diems are typically $4-$18. budget adjustment factor The sum of the components is multiplied by the quarterly BAF (0.77617 for Oct 2026). See budget_adjustment_factor. Rate files show NFRATE (at 100%), NFRATEMULT (the BAF) and PROPOSEDRATE (paid). - Inflation
CMS Nursing Home Without Capital Market Basket Index (1st-quarter issue). Each cost report is indexed forward to the midpoint (6th month) of the price year (1187.91(1)(iv)). FY2025-26 factors ran from 1.0580 to 1.3860 depending on report year-end. In practice the BAF removes most of the inflation the formula adds.
Verified October 11, 2026
Case mix
- System
Transitioning to PDPM
- Applied at
Facility average
- How it works
Each home gets one resident care rate per quarter: the peer price x the home's average Medicaid CMI on the picture date. Every Medicaid resident in the home is billed the same per diem (55 Pa. Code 1187.93, 1187.96(a)(5)).
- Classification
PDPM nursing component only, with Pennsylvania's own fixed weights (Appendix D): 25 groups from ES3 3.95 down to PA1 0.64. The PT, OT, SLP and NTA components are not used, because about 91% of residents are dual eligibles whose therapy Medicare pays. Before April 2026: RUG-III 44-group (index version 5.12) from the PA-specific OBRA MDS / Optional State Assessment.
- Applies to
Resident care component only. Other resident related, administrative and capital are not case-mix adjusted. County homes (Ch. 1189) are not case-mix adjusted at all.
- Acuity measured from
Two CMIs. (1) Facility MA CMI = the average CMI of residents listed as Medicaid on the CMI report for the quarterly picture date. It sets the payment. Picture dates are the first day of the second month of each quarter: Feb 1 -> July rate, May 1 -> Oct, Aug 1 -> Jan, Nov 1 -> Apr. (2) Total facility CMI (all residents, any payer) from the Feb 1 picture date is used only to neutralize costs at price setting. If a home has no MA residents, it gets the statewide average MA CMI. New homes get the statewide average MA CMI.
- Updated
Quarterly (each Jan 1, Apr 1, Jul 1, Oct 1 rate quarter, from the picture date about 5 months earlier). Prices are annual (July 1).
- Move to PDPM
Final rule 55 Pa.B. 5119 (Aug 2, 2025; amends 1187.2/.33/.92/.93/.96/.97, adds Appendix D). Blended resident care rate: Apr-Jun 2026 = 75% RUG-III + 25% PDPM. Jul-Sep 2026 = 50/50. Oct-Dec 2026 = 25% RUG-III + 75% PDPM. 100% PDPM from Jan 1, 2027. The 'RUG-III rate' in the blend is frozen at the average of the Oct 2025 and Jan 2026 quarter rates. The blend uses each resident's most recent comprehensive assessment; from 2027 it uses the most recent classifiable assessment of any type. DHS published separate PDPM medians and prices and PDPM total-CMI values for 2017-2024 (rate page). The rule is budget neutral only through the BAF. Without a BAF, PDPM would have raised rates an average 32.94%. With the BAF, about 47% of homes gain and about 310 lose; the biggest gain is +48.94% and the biggest loss -13.82%. Driver: CMS stopped supporting the RUG-III Optional State Assessment on Oct 1, 2025.
Verified October 11, 2026
Low-acuity residents
None found. There is no reduced or flat rate for low-acuity residents. Pennsylvania pays one facility-average rate, so a low-acuity resident only lowers the home's average MA CMI. The lowest PDPM nursing groups are weighted PA1 0.64, PA2 0.69 and CA1 0.91 (Appendix D). Related rules (not carve-outs): (1) A Medicaid resident with no valid assessment in the window is counted at the LOWEST PDPM CMI (0.64) in the facility MA CMI, and at the HIGHEST (3.95) in the total facility CMI used to neutralize costs. Both choices lower the home's rate. (2) If a home files no valid CMI report, it gets the same treatment for the whole home (1187.33(b)). Checked: 55 Pa. Code Ch. 1187 (1187.33, 1187.92-1187.96, Appendix D), the PDPM final rule 55 Pa.B. 5119, and the Oct 2026 rate file.
Verified October 11, 2026
Capital
Fixed property is a deemed value, not fair rental value or actual cost: allowable beds as of April 1 x $26,000 per bed x the financial yield rate (Moody's composite Aaa corporate bond yield, 60-month average ending March). Added to that: audited major movable property cost and audited real estate tax (or payment in lieu) from the latest audited MA-11. The total is divided by resident days adjusted to a minimum 90% occupancy. The capital payment for new or added beds requires prior DHS approval and a Certificate of Need/1122 history, or a capital cost reimbursement waiver (1187.113, 1187.113b). The Jul 2026 file shows a 4.53 yield rate (YLDRATE). Source: 55 Pa. Code 1187.96(d), 1187.2.
Verified October 11, 2026
Budget adjustment factor
Pennsylvania's BAF ('revenue adjustment neutrality factor') is the main thing setting nursing home rates. Each quarter the formula rates at 100% are multiplied by BAF = annual target rate / statewide day-weighted average quarterly rate at 100%, capped at 1.0. The annual target rate = last year's target x (1 + the % increase the General Appropriation Act funds). So the statewide average paid rate equals the appropriation, whatever the cost formula produces. In use since 7/1/2005 (35 Pa.B. 6232), reauthorized in 2007, 2008, 2011, 2013, 2016, 2019 and 2022 (Act 54 of 2022, through 6/30/2026), and in 2026 for FY2026-27 (Oct 2026 rate file: 'The General Assembly has enacted legislation to continue the use of a BAF in FY 2026-2027, subject to CMS approval'; SPA pending). Authority: Human Services Code 443.1(7), Fiscal Code 72 P.S. 1601-T/1602-T. DHS says the BAF held rate growth FY2004-05 to FY2025-26 to +55.03% (+$4.35/day/yr) instead of +70.24% (+$5.56/day/yr). NONPUBLIC QUARTERLY BAF / TARGET RATE (DHS BAF workbooks): FY2020-21: 0.80753, 0.80825, 0.79551, 0.79901 (target $199.96, flat since at least FY2019-20). FY2021-22: 0.80409, 0.79879, 0.80412, 0.79808 ($199.96). FY2022-23: Jul 0.78302, Oct 0.77939, then a +17.5% budget increase raised the target to $234.95 from Jan 1, 2023: Jan 0.92282, Apr 0.90477. FY2023-24: 0.89957, 0.88922, then +1.88% to $239.37 from Jan 2024: 0.90182, 0.89719. FY2024-25: 0.78683, 0.78233 (rates at 100% jumped about 14%, from $266.80 to $304.22, on rebasing), then +7.04% to $256.22 from Jan 2025: 0.83848, 0.83746. FY2025-26 (0% budget change, target held at $256.22): 0.80875, 0.80272, 0.80365, Apr 2026 0.80534. FY2026-27 (proposed, assumes FY2025 funding level): Jul 2026 0.79416, Oct 2026 0.77617. The PDPM blend is pushing average rates at 100% up (about $318 in Apr 2026 to about $330 in Oct 2026) while the target stays flat, so the BAF falls. COUNTY BAF (applied to the prior year per diem): 1.0 for 7/1/2020-7/1/2022, 1.175 (posted as the 7/1/23 step), 1.0188 (7/1/24), 1.0704 (1/1/25), 1.0 (7/1/25; proposed 1.0 for 7/1/26).
Verified October 11, 2026
Add-ons and money outside the rate
Paid outside the posted rate
- Level
large
- Estimate
About 20% of base for nonpublic homes (the CHC minimum payment rate adds about +$53/day on a $253.42 median FFS rate, Oct 2026) and about 100% for county homes (MPR median $596.04 vs FFS $285.76). The CMS quality preprint puts other directed payments (the MPR) at 29.0% of commercial on a 45.4% base. MDOI, targeted supplements and the $15M quality payment add a little more.
- Components
CHC minimum payment rate directed payment (uniform $22.41 + variable median $30.66/day nonpublic; uniform $250.82 + $16.92-$102.05/day county, 2026); MDOI $49.307M total FY2026-27; targeted supplementation payments ~$19.4M FY2025-26; disproportionate share incentive $0.20-$2.50/day; CHC quality incentive $15M CY2025; HAI surcharge refunds.
Verified October 11, 2026
Payments by owner type
- Applies
yes
- Detail
The 14 county-owned homes get a CHC minimum payment rate about double their FFS rate (uniform $250.82/day + county-specific $16.92-$102.05; median $596.04 vs $285.76 FFS), against about +$53/day for nonpublic homes. County homes are also on a separate frozen-per-diem x county BAF method, can have county-certified costs claimed as MA expenditures, and MDOI is for nonpublic homes only. Some targeted supplements are restricted to county or nonprofit homes by county class.
- Funding
The county uniform per diem looks county/IGT-funded (unconfirmed); DHS may claim county-certified costs as MA expenditures (443.1(6)).
Verified October 11, 2026
Quality program
- Program
Nursing Facility Quality Incentive (pay for performance), paid through Community HealthChoices MCOs as a CMS state-directed payment. CY2025 preprint PA_VBP_NF2_Amend_20250101-20251231, approved by CMS 8/20/2026. County homes also have a separate Ch. 1189 pay-for-performance incentive (1189.105(b)), not researched in detail.
- Funding
MCO directed payment paid as a separate payment term outside monthly capitation: $15.0M total ($8.26M federal + $6.74M non-federal). The non-federal source checkbox was not captured from the PDF.
- Size
$15M per calendar year (CY2025), about 0.2% of what CHC plans pay nursing homes (the preprint's payment analysis: base 45.4% of commercial + 29.0% from other SDPs [the MPR] + 0.2% from this = 74.6%).
- Paid as
Lump sum after the performance year, sent through each MCO in proportion to the home's resident days with that MCO.
- Measures
Measure Source Weight How points are earned Short-stay residents re-hospitalized after NF admission (521) Medicare Part A claims (CMS Care Compare) 0-2 benchmark points + 0-2 improvement points 1 point at the PA median, 2 at the best quartile (25th percentile, lower is better). Improvement vs baseline: 0.5 pt for >=0.5, 1 pt for >=1, 2 pts for >=2 points of improvement. High-risk long-stay residents with pressure ulcers (453, now 479) MDS QM same point scale Median / 25th percentile; measure frozen Apr 2024-Jan 2025. Long-stay residents with one or more falls with major injury (410) MDS QM same point scale Median / 25th percentile. Long-stay residents given seasonal influenza vaccine (454) MDS QM same point scale Median / 75th percentile (higher is better). Long-stay residents given pneumococcal vaccine (415) MDS QM same point scale Median / 75th percentile. Long-stay residents who received an antipsychotic medication (419) MDS QM benchmark points only for CY2025 Median / 25th percentile; no improvement points because CMS respecified the measure in Jan 2026. - Scoring period
Calendar-year performance (CY2025). Improvement is measured from the CY2022 base year. Measures use the whole NF population (all payers). Paid after CMS data release and CMS preprint approval: the CY2025 amendment was approved Aug 2026, so payment lags the performance year by 9+ months.
- Payment formula
Points summed across measures, then x the home's CHC MA occupancy % (CHC Medicaid days / total days, from the resident day report). Value per point = $15M / total adjusted points, so the whole pool is paid out. Payment = adjusted points x value per point.
- Eligibility
Nonpublic and county NFs serving CHC members. A home must have attended at least one live DHS Learning Network webinar, or it is disqualified. No points on a measure when CMS suppresses it for a small denominator.
- Cadence
Annual, scored and paid once per calendar year.
- Scores published
Not found. No per-facility score or payment file was located on the DHS rates page.
- Notes
Small next to the CHC minimum payment rate (MPR) directed payment, which adds about $50/day for nonpublic homes. The PA quality strategy links it to the Governor's Healthcare Reform Recommendations (2021).
Verified October 11, 2026
Provider tax
- Charged
per non-Medicare day
- Standard amount
$33.41 per non-Medicare resident day (FY2025-26 final, CMS waiver approved 3/11/2026; same rate proposed for FY2026-27)
- Tiers
Who Test Amount >= 94% MA (Medicaid) occupancy (CY2021) medicaid_utilization $9.32 per non-Medicare day >= 57,000 MA (Medicaid) days (CY2021) medicaid_utilization $9.32 per non-Medicare day county homes public $9.32 per non-Medicare day <= 44 beds size $9.32 per non-Medicare day certain CCRCs ccrc $9.32 per non-Medicare day state and veterans homes, free-care homes, new homes in their first quarter other exempt - Lower for high-Medicaid homes
yes
- Returned in the rate
Not returned as a separate add-on; the revenue plus federal match funds the general case-mix rates, MDOI and supplements, and the assessment is an allowable cost on the MA-11.
Verified October 11, 2026
Provider tax notes
Nursing Facility Assessment Program (Human Services Code Art. VIII-A, 62 P.S. 801-A-815-A), charged on non-Medicare resident days of the prior quarter. FY2025-26 final (CMS waiver approved 3/11/2026) and FY2026-27 proposed: $33.41 per non-Medicare day for most homes. A $9.32 lower rate applies to county homes, homes with <=44 beds, certain CCRCs, homes with >=94% MA occupancy (CY2021), and homes with >=57,000 MA days (CY2021). Exempt: state and veterans homes, free-care homes, and new homes in their first quarter. Aggregate: $468.256M FY2024-25, $462.282M FY2025-26, $460.966M proposed FY2026-27. Must raise at least $50M of new revenue. Not returned as a separate add-on. The revenue plus federal match funds the general case-mix rates, MDOI and supplements, and the assessment is an allowable cost on the MA-11.
Verified October 11, 2026
Supplemental payments
(1) CHC minimum payment rate state-directed payment (since 1/1/2023): MCOs must pay at least FFS + a uniform per diem + a facility-specific per diem. Nonpublic: +$22.41 uniform + about $30.66 median variable, about +$53/day (2026). County: +$250.82 uniform + about $60 variable, about +$310/day (2026). This is the largest supplemental stream (see managed_care_rate_floor). (2) Medical Assistance Day One Incentive (MDOI), for nonpublic homes with >=85% overall occupancy and >=65% MA occupancy: up to 2 payments/yr pro rata to PA MA days. $21M state funds ($47.792M total) FY2025-26; $21M state ($49.307M total) FY2026-27 (56 Pa.B., Sept 19, 2026). (3) Targeted 'supplementation' payments, paid per MA day of the prior year to homes meeting narrow county-class / bed / acuity tests, FY2025-26: county NF in a 2nd class A home rule county with >725 beds, $4.552M ($2.0M state); nonpublic in a 1st class county (Philadelphia) with >395 beds, $2.276M; nonpublic in a 2nd class A county with >126 beds, $3.414M; nonprofit in a 2nd class A city of a 3rd class county, $3.414M; nonpublic in an 8th class county with >119 beds, $5.690M. (4) Disproportionate share incentive (1187.111): per MA paid day for homes with >=90% occupancy and >=80% MA occupancy, $0.20-$2.50/day (year-1 values, inflated). (5) One-time 2023 Enhanced Supplemental (COVID) payment: $40M ($18.352M state), FY2023-24. (6) County homes: DHS may claim county-certified costs as MA expenditures (443.1(6)). The large county MPR uniform per diem looks county/IGT-funded (unconfirmed). (7) Health care-associated infection (HAI) payments: the MA share of the annual HAI surcharge, refunded per MA-11 (Pa.B. notices).
Verified October 11, 2026
Other add-ons
(1) Supplemental ventilator/tracheostomy payment (1187.117), quarterly, for homes with >=10 MA residents on vent/trach care and >=10% of MA residents: per diem = (vent-trach share x $69) x vent-trach share, times MA days. (2) Statutory added vent/trach payment since FY2020-21 (443.1(7)(vii)): $130 x (vent-trach MA residents / total MA residents) per eligible MA day, for homes with >=10 such residents and >=17%. Paid in FFS and CHC. (3) Extra FY2025-26 vent/trach add-ons split equally among homes that had >90% vent/trach MA residents in FY2014-15 ($1.138M), and among Philadelphia homes opened after 2017 with >=90% ($0.569M). (4) Exceptional DME grants (1187.151-158) for listed high-cost equipment for individual residents. No COVID per diem add-on remains in the rate.
Verified October 11, 2026
Units paid separately
(1) Special rehabilitation facilities (>70% of residents with neurological/neuromuscular diagnoses and severe functional limits): their own peer group 13, never collapsed. 13a = SRFs classified after 7/1/2000 priced on all SRFs. They have the highest prices (PDPM RC $246.46, ORR $141.16). (2) Hospital-based NFs (those with a hospital-based rate on 6/30/1995): peer group 14 (RC $236.30). (3) County nursing facilities (Ch. 1189): not case-mix; per diem = prior-year per diem x county BAF, unchanged in method since 2007. County costs were removed from nonpublic price setting over FY2009-10 to FY2011-12. (4) State-owned homes and state veterans homes are outside Ch. 1187/1189. (5) Ventilator/tracheostomy residents get supplements, not a separate rate (see other_add_ons). (6) LIFE (PACE) is a separate capitated program.
Verified October 11, 2026
Payment rules
Managed care for long-term care
- Status
yes
- Detail
Community HealthChoices (most residents 21+ and duals)
Verified October 11, 2026
Who pays
mixed, mostly managed: Community HealthChoices (CHC), Pennsylvania's managed long-term services and supports program (1915(b)/(c)), covers most Medicaid nursing home residents age 21+ and dual eligibles. It was phased in by zone: Southwest Jan 2018, Southeast Jan 2019, the rest of the state Jan 2020. DHS still sets the fee-for-service (FFS) case-mix rate, which is component 1 of the CHC minimum rate. Fiscal notes for the nursing facility assessment book the program under 'MA - Community HealthChoices'. FFS pays residents outside CHC (e.g. under 21, LIFE/PACE excluded populations).
Verified October 11, 2026
Managed care rate floor
Yes, and above FFS. Since Jan 1, 2023, a CMS-approved state-directed payment (42 CFR 438.6(c), approved 12/30/2022) sets a 'minimum payment rate' (MPR) that each CHC-MCO must contract at, at least. MPR = (1) the State Plan FFS per diem + (2) a uniform per diem by provider class + (3) a facility-specific variable per diem. Oct 1, 2026 nonpublic homes: uniform $22.41; variable median $30.66 (range $5.64-$65.47); total MPR median $301.79 vs FFS median $253.42, about 19% above FFS. County homes: uniform $250.82 plus a county-specific $16.92-$102.05, total median $596.04, about double the county FFS rate of $285.76. The uniform and variable parts are reset each calendar year under the CY preprint. Nonpublic uniform: $24.13 (2023), $21.30 (2024), $21.19 (2025), $22.41 (2026). County uniform: $294.78 / $233.77 / $244.77 / $250.82. MPR files are posted quarterly on the DHS rates page. Source: https://www.pa.gov/agencies/dhs/resources/for-providers/ltc-p…
Verified October 11, 2026
Included in the daily rate
Included (1187.51(c), (e)): room, dietary, nursing, social services, medical/surgical supplies, oxygen and its administration, OTC drugs, routine DME (canes, walkers, wheelchairs, traction), tube-feeding supplements, laundry, nonemergency transportation, beauty/barber, and physical, occupational and speech therapy (a resident care cost). Separate: prescription drugs, billed by the pharmacy (1187.105); exceptional DME by grant (1187.151+); physician and hospital services. Medicare Part B-type services are reported separately (1187.72). In practice Medicare pays most therapy for dual eligibles.
Verified October 11, 2026
Bed hold
- Hospital stays
Paid at 1/3 of the home's current per diem, up to 15 consecutive days per hospitalization. The home must hold the same bed for stays of 15 days or less, and cannot bill those days to the resident or as therapeutic leave.
- Leave days
Paid at 100% of the current per diem, up to 30 days per calendar year, if in the plan of care and ordered by the attending physician.
- Occupancy rule
Hospital reserved bed days are paid only if the home's overall occupancy is >=85% for the rate quarter (since 2010-11). Occupancy = assessments on the CMI report / certified beds; the highest of the last 3 picture dates counts. No valid CMI report means no hospital bed-hold pay. No occupancy test for therapeutic leave.
- Notes
In the BAF day-weighting, 1/3 of hospital reserve days count as base days.
Verified October 11, 2026
Personal needs allowance
- Per month
60
- Effective
2025-01-01
- Notes
LTC Handbook 468.32 and Appendix A: $60 effective 1/1/2025 (was $45 from 7/1/2007 to 12/31/2024). ICF/ID residents not on SSI with sheltered-workshop earnings get a graduated PNA (55 Pa. Code 181.452, up to $110 + 50% of earnings over $150). Not COLA-indexed.
- Confidence
confirmed
Verified October 11, 2026
Medicare coinsurance days
- Method
lesser_of
- Rule
Lesser-of. 55 Pa. Code 1187.102(a): if the Medicare payment is less than the NF's MA per diem, the Department pays coinsurance only so that Medicare plus Department plus other coinsurance payments do not exceed the MA per diem, and never more than the coinsurance. Under 1187.102(c) the NF may not seek the unpaid coinsurance from any source other than Medicare. 55 Pa. Code 1181.60 holds the older parallel rule. Medicare Advantage: not found. CHC MCOs cover duals and likely apply the same per-diem cap.
- Effect
The home gets the MA per diem minus Medicare's payment, which is usually $0, and cannot bill the resident or family for the rest.
- Confidence
confirmed
- Source
https://www.pacodeandbulletin.gov/Display/pacode?file=/secure… (s. 1187.102)
- Medicare Advantage
not addressed: 55 Pa. Code 1187.102 (lesser-of for Medicare coinsurance) has no Medicare Advantage, Medicare HMO or managed-care text. The CHC agreement (CHC-MCOs are aligned with D-SNPs) was not retrieved.
- Medicare Advantage source
https://www.pacodeandbulletin.gov/Display/pacode?file=/secure…
Verified October 11, 2026
Required care spending
- Applies
no
- Rule
No stand-alone spending requirement. Related cost cap (not counted as a spending rule): Cost-linked limit rather than a stand-alone spending floor: resident care and other resident related rates are capped at the lower of the peer price or 103% of the home's own cost plus 30% of the gap up to the price (55 Pa. Code 1187.107), so homes that spend less than the price are paid less. Administrative has no own-cost limit. No recoupment rule found.
Verified October 11, 2026
Occupancy rules
- Applies
yes
- Rule
(1) Administrative and capital per diems use resident days adjusted to at least 90% occupancy. (2) Hospital reserved bed days are paid only if overall occupancy is 85%+ for the rate quarter. (3) MDOI requires 85%+ overall occupancy and 65%+ MA occupancy. (4) The disproportionate share incentive requires 90%+ occupancy and 80%+ MA occupancy.
Verified October 11, 2026
MDS accuracy penalties
No dollar penalty or recoupment program found. The built-in penalties are in 1187.33(b): a resident with no valid assessment counts at the lowest PDPM CMI (0.64) in the MA CMI. An uncorrected error on a classifiable item is scored 'no/not present'. A missing or invalid CMI report puts the whole home at the lowest MA CMI and makes it ineligible for vent/trach supplements and hospital bed-hold pay that quarter. Whether DHS runs MDS validation reviews with rate cuts is unconfirmed.
Verified October 11, 2026
Published rates and changes
How often rates change
- A home's rate changes
quarterly
- When
Jan 1, Apr 1, Jul 1, Oct 1 (case mix and the budget adjustment factor); prices Jul 1
Verified October 11, 2026
When rates change
Prices: July 1 state fiscal year, set in the spring. Rates: quarterly (Jan 1, Apr 1, Jul 1, Oct 1), as the MA CMI and the quarterly BAF change each quarter. Rates are published as PROPOSED in the Pa. Bulletin and on the DHS site and paid provisionally. FINAL rates come much later after CMS certifies the BAF SPA. FY2025-26 final rates were published May 9, 2026, and rate letters are issued only then. CHC MPR files are posted for each quarter, with the uniform/variable parts reset each calendar year.
Verified October 11, 2026
Posted rates
- Home-level rates published
Yes
- Format
xlsx
- Cadence
Quarterly proposed rate files (nonpublic) and annual county files. Final 'condensed' and 'detailed' files after CMS approval, plus quarterly CHC Minimum Payment Rate files. Latest: Q4 2026 proposed (Oct 1, 2026) and Q4 2026 MPR (file date 9/4/2026). Final rates on the page currently run through Q2 2025.
- History
The page says final rates go back to January 1996. Files linked directly cover July 2019 onward (xls/xlsx), plus crosswalk PDFs for detailed rates back to 2011-12, county detailed rates listed back to 2006-07, and BAF workbooks back to 2014-15 on the BAF page. CHC MPR files run from 1/1/2023.
- Home identifier
PA Medical Assistance provider number (13-digit PNUM, e.g. 1041038130001) + DHS NIS provider ID (PROVID) + name; also county, owner type, peer group, beds. No CCN or NPI.
Verified October 11, 2026
Rate build-ups
- Published
Yes
- Where
https://www.pa.gov/agencies/dhs/resources/for-providers/ltc-p… (proposed/detailed rate files) and https://www.pa.gov/agencies/dhs/resources/for-providers/budge… (BAF workbooks)
- What they show
The July (rebase-quarter) proposed file shows each home's 3 cost reports: resident care/ORR/admin costs as reported and inflated, case-mix-neutral RC per diem, report end date, days, occupancy, CMI per report, inflation factor. Plus the price inputs: beds, $26,000 fixed property, movable property, yield rate, real estate tax, peer group. Then the rate: MA CMI, RC price, RC limit, RC rate, ORR price/limit/rate, admin rate, capital per diem, NFRATE at 100%, BAF (NFRATEMULT) and proposed rate. Other quarters show the condensed build-up. The BAF workbook shows the target rate, the weighted average rate at 100% per quarter, the quarterly BAF, and per-facility days and rates with and without the BAF, plus county BAF history.
- Format
xlsx (BAF workbooks .xls)
Verified October 11, 2026
Recent changes
| Effective | Change | Headline | Direction | Size | Source |
|---|---|---|---|---|---|
| 2023-10-07 | One-time 2023 Enhanced Supplemental Payment (COVID relief) to qualifying public and nonpublic NFs that paid the FY2019-20 assessment. | One-time $40M enhanced supplemental payment | increase | $40M total ($18.352M state), FY2023-24 | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
| 2024-01-01 | FY2023-24 budget increase raised the BAF target rate for the Jan-Jun 2024 quarters (county BAF 1.0188 at the next county step). | BAF target rate raised 1.88% to $239.37 | increase | target $234.95 -> $239.37 (+1.88%); BAF Oct 2023 0.88922 -> Jan 2024 0.90182 | https://www.pa.gov/content/dam/copapwp-pagov/en/dhs/documents… |
| 2024-01-01 | CHC minimum payment rate uniform per diem reset for CY2024 (nonpublic and county). | Managed care uniform per diem reset lower for CY2024 | cut | nonpublic uniform $24.13 -> $21.30/day; county uniform $294.78 -> $233.77/day | https://www.pa.gov/agencies/dhs/resources/for-providers/ltc-p… |
| 2024-07-01 | Annual rebasing pushed formula rates at 100% up about 14% while the target rate stayed flat, so the BAF deepened. | Rebasing raises formula rates 14%; BAF deepens | structural | weighted avg rate at 100% $266.80 (Apr 2024) -> $304.22 (Jul 2024); BAF 0.89719 -> 0.78683 | https://www.pa.gov/content/dam/copapwp-pagov/en/dhs/documents… |
| 2025-01-01 | FY2024-25 budget increase raised the BAF target rate for Jan-Jun 2025; county homes got a 1.0704 BAF. | BAF target rate raised 7.04% to $256.22 | increase | target $239.37 -> $256.22 (+7.04%); BAF 0.78233 -> 0.83848 | https://www.pa.gov/content/dam/copapwp-pagov/en/dhs/documents… |
| 2025-01-01 | CHC Nursing Facility Quality Incentive directed payment for CY2025 performance (amendment approved by CMS Aug 20, 2026). | $15M managed care quality incentive for CY2025 | increase | $15M ($8.26M federal) | https://www.medicaid.gov/medicaid/managed-care/downloads/PA_V… |
| 2025-07-01 | FY2025-26 rates set with no budget increase: the target held at $256.22 and the county BAF was 1.0. | FY2025-26 rates set with no budget increase | structural | budget change 0.0%; BAF 0.80875 (Jul 2025) to 0.80534 (Apr 2026) | https://www.pa.gov/content/dam/copapwp-pagov/en/dhs/documents… |
| 2025-08-02 | Final rule adopting the PDPM nursing component in place of RUG-III, with a 2026 blend schedule. | Final rule adopts PDPM nursing component | structural | budget neutral via BAF; about 47% of homes gain, about 310 lose (range +48.94% to -13.82%) | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
| 2026-01-01 | CHC minimum payment rate uniform per diem reset for CY2026. | Managed care uniform per diem raised for CY2026 | increase | nonpublic uniform $21.19 -> $22.41/day; county $244.77 -> $250.82/day | https://www.pa.gov/agencies/dhs/resources/for-providers/ltc-p… |
| 2026-04-01 | PDPM blend began: 25% PDPM (Apr), 50% (Jul), 75% (Oct 2026), with 100% PDPM from Jan 2027. | PDPM blend began: 25% PDPM, 75% RUG-III | structural | https://www.pacodeandbulletin.gov/Display/pacode?file=/secure… | |
| 2026-07-01 | BAF reauthorized for FY2026-27 (SPA pending). Proposed rates assume flat FY2025 funding, so the BAF falls as PDPM raises rates at 100%. | BAF reauthorized; factor falls to 0.77617 | cut | BAF 0.80534 (Apr 2026) -> 0.79416 (Jul 2026) -> 0.77617 (Oct 2026); median proposed rate $255.29 -> $253.42 | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
| 2026-07-01 | Medical Assistance Day One Incentive payments continued for FY2026-27 at the FY2025-26 state funding level. | Day One Incentive continued at $21M state funds | increase | $21M state ($49.307M total) | https://www.pacodeandbulletin.gov/Display/pabull?file=/secure… |
Verified October 11, 2026
Assisted living
Medicaid assisted living
- Covered
limited
- Program
No Medicaid assisted living benefit. Personal care homes (PCH) and assisted living residences (ALR) are 'typically not covered by Medicaid'. Some residents receive Community HealthChoices (1915(c)) home and community-based services.
- What is paid
Room, board and the facility's care fee are paid privately (rates set by the facility). Medicaid may pay only for individual CHC waiver services a resident qualifies for. State SSI supplement for PCH residents not verified here.
- Rate
No Medicaid ALF/PCH rate.
- Limits
n/a
Verified October 11, 2026
Sources
- DHS Nursing Facility Rates page (proposed/final rate files, CHC Minimum Payment Rates) · agency page
- DHS Budget Adjustment Factor page (BAF workbooks FY2014-15 to FY2025-26) · agency page
- FY2025-26 quarterly BAF workbook (file date 3/26/2026) · rate file
- FY2024-25 quarterly BAF workbook · rate file
- FY2023-24 quarterly BAF workbook · rate file
- FY2022-23, FY2021-22, FY2020-21 BAF workbooks · rate file
- Q4 2026 (Oct 1, 2026) proposed nonpublic NF rates · rate file
- Q3 2026 (Jul 1, 2026) proposed nonpublic NF rates (detailed rebase file) · rate file
- PDPM Medians and Prices · rate file
- CHC Minimum Payment Rates, Oct 1, 2026 (and earlier quarterly MPR files 2023-2026) · rate file
- 55 Pa. Code Chapter 1187 Nursing Facility Services (full text) · regulation
- 55 Pa. Code 1187.96 Price-setting and rate-setting computations · regulation
- 55 Pa. Code 1187.104 Limitations on payment for reserved beds · regulation
- Final rule: Transition to Patient Driven Payment Model, 55 Pa.B. 5119 (Aug 2, 2025) · regulation
- Notice: Budget Adjustment Factor for FY2026-27, 56 Pa.B. 3807 (Jun 27, 2026) · agency page
- Notice: Proposed rates for SFY 2026-27 (Jun 27, 2026) · agency page
- Notice: Final rates for SFY 2025-26, 56 Pa.B. (May 9, 2026) · agency page
- Notice: Peer groups, medians and prices SFY 2025-26, 56 Pa.B. 2765 · agency page
- Notice: Nursing Facility Assessment Program FY2026-27 (proposed) and FY2025-26 (final) · agency page
- Notices: FY2025-26 county/nonpublic supplementation and vent/trach add-on payments (56 Pa.B., Mar 28, 2026) · agency page
- Notice: MA Day One Incentive payments FY2026-27 (Sept 19, 2026) · agency page
- Notice: 2023 one-time enhanced supplemental payment (Oct 7, 2023) · agency page
- Human Services Code 443.1 (62 P.S. 443.1) - NF payments, BAF, vent/trach $130 add-on, MDOI · statute
- CMS SDP preprint PA_VBP_NF2_Amend_20250101-20251231 (NF Quality Incentive, approved 8/20/2026) · state plan
- DHS Personal Care Homes page · agency page
- Medicare crossover / coinsurance rule · regulation
- Medicare crossover rule · regulation
- Personal needs allowance · regulation
Other states
Alabama · Alaska · Arizona · Arkansas · California · Colorado · Connecticut · Delaware · District of Columbia · Florida · Georgia · Hawaii · Idaho · Illinois · Indiana · Iowa · Kansas · Kentucky · Louisiana · Maine · Maryland · Massachusetts · Michigan · Minnesota · Mississippi · Missouri · Montana · Nebraska · Nevada · New Hampshire · New Jersey · New Mexico · New York · North Carolina · North Dakota · Ohio · Oklahoma · Oregon · Rhode Island · South Carolina · South Dakota · Tennessee · Texas · Utah · Vermont · Virginia · Washington · West Virginia · Wisconsin · Wyoming
