Medicaid Nursing Home Reimbursement

Public Health Emergency

$10 million in American Rescue Plan Act (ARPA) Funding for Nursing Homes
Public Act 21-2 established a temporary 10% rate increase for a 9-month period effective July 1, 2021 to March 31,2022. In support of nursing homes, the Department extended the 10% rate increase to June 30, 2022. Specifically, the rate increase for April and May 2022 will be covered under Medicaid while the increase for June 2022 will be made as one-time lump sum payments utilizing $10 million in ARPA funding.

Nursing home providers must download, complete, and return to the Department the Attestation and Short-period Cost Report documents below. The Department will issue payment after receipt of completed documents. Please read all information below carefully and return completed documents to:

May 13, 2021 - Announcement Letter The Department of Social Services and the Office of Policy and Management jointly released a financial support package to the nursing home industry that included almost $300 million in support stabilization funds. The Department recognizes the impact that the pandemic has had on workers, residents and on the industry as a whole, and committed to addressing the long-term viability and stability of the nursing home industry with a goal to maximize the quality of care and the quality of work life for the employees that provide this care for our residents in need. Therefore, the May 13, 2021 letter outlined specifically that:

"Any nursing home that (1) does not reach 85% occupancy by April 1, 2022, (2) has excess beds in their region, or (3) determines the acuity-based payment system will result in substantial deterioration of the home's financial condition that may be expected to adversely affect resident care and the continued operation of the home, will be required to submit a plan to the Department of Social Services on efficiency, quality of care and consolidation of facilities. The review of such plans will include consideration of the need for nursing home beds within a 15-mile radius of the home. Nursing homes must then start acting on the plan within three months of approval."

At a minimum, plans must include a description of how the facility will address the criteria above, and submissions may include any and all documents needed to support and describe the facilities intended plan of action. Nursing homes are encouraged to submit plans that support efficiency, quality and, when possible, consolidation. The Department will review the plans and approve or deny the plan. The nursing home must start acting on the plan within three-months of Department approval. The Department will follow-up with each home either approving or denying submissions, and the Department will work with homes to make plan revisions as appropriate. For additional questions please contact the Office of reimbursement & CON

Nursing Home FAQ #1 
Nursing Home FAQ #2 

April 13, 2021Announcement Letter The Office of Policy and Management and the Department of Social Services have announced financial supports for nursing facilities. Supports include:

  • crediting homes for financial incentives provided to direct care staff since July 1, 2020;
  • 5% rate increase from April 1, 2021 through June 30, 2021;
  • continuation of state coverage of costs for nursing home testing, in accordance with Department of Public Health (DPH) guidance, through June 30, 2021; and
  • deferral of the phased-in implementation of acuity-based rates, from July 1, 2021 to October 1, 2021.
To receive the 5% rate increase for April 1, 2021 to June 30, 2021, each nursing home must:
  1. Complete the Acknowledgement and Acceptance of Terms
  2. Nursing homes that do not sign and return this document will not be eligible for a rate increase.
  3. Return the signed document to the Department at:
February 2021 - COVID-19 Financial Supports Package
Coronavirus Relief Fund (CRF) Grant Payments to Qualifying Nursing Home Providers are made in accordance with Governor Lamont's Executive Order No. 7NN, Sections 5, 7, and 8, and Section 17b-11 of the Connecticut General Statutes, the Department will make Coronavirus Relief Fund (CRF) grant payments to all qualifying nursing home providers that are enrolled in good standing in the Connecticut Medical Assistance Program (CMAP). On December 30, 2020, the Office of Policy and Management and the Department of Social Services announced financial supports for nursing facilities in response to the COVID-19 pandemic. Supports will be implemented in two-phases and are designed to meet specific criteria, standards, and conditions to improve infection control for COVID-19 and other infectious diseases in long-term care settings.

A nursing home that wishes to receive funding must download, carefully review, and complete the forms below. Please complete and return to the Department the 'Signature and Attestation Form’ (PDF) and ‘Short Period Cost Report’ (Excel). The short period cost report is not the typical cost report filed annually by nursing facilities, but is specifically related to this COVID financial supports package. Please complete and return to the Department by emailing completed documents to:

DSS will process submissions of CRF grant documents on a continuous basis and will make grant payments on a rolling, weekly basis, with best efforts to make the payments early the week subsequent to submission of a complete package of documents. The November and December payments will be issued as a one-time CRF grant payment. The increases for January, February, and March will be issued through the Medicaid rate.

Application Submission Deadline Extended to April 20, 2021 -The application submission deadline has been extended from March 17, 2021 to April 20, 2021. Based on feedback from the provider community and to allow for as many homes as possible to apply for financial supports, the deadline has been extended to April 20, 2021. 

December 30, 2020 Announcement Letter
Signature and Attestation Form
Short Period Cost Report
Grant Distribution List
Rate Increases January to March 2021
FAQ Document (Revised 3/1/2021)
COVID-19 Temporary Rate Increase Letter

February 26, 2021 - Notice to Nursing Home Administrators
Information on the Economic Impact Payments or "stimulus payments" made to nursing home residents. July 1, 2020Frequently Asked Questions (FAQ) - This document features important information on CRF grant payments, amount determinations, and guidance on the completion of grant applications. The deadline to file an application for CRF grants has been extended to August 14, 2020.

March 2020 - 10% Medicaid Rate Increases Effective March 2020 - Under existing statutory authority, the Department of Social Services has implemented a 10% Medicaid rate increase effective March 1, 2020 through March 31, 2020 and issued $11.8 million in advances related to that period. This additional reimbursement is required to be applied towards: (a) employee wages, including staff retention bonuses, overtime, and shift incentive; (b) new costs related to screening of visitors, PPE, and cleaning and housekeeping supplies; and (c) other COVID-related costs.

April 3, 2020 - April Nursing Facility Rate Increases by Provider Increases were effective April 1 - April 30, 2020

June 3, 2020 - Notice to Nursing Home Administrators Information on the Economic Impact Payments or "stimulus payments" made to nursing home residents.