Supplemental Payments
Supplemental Payments are payments above and beyond standard Medicaid Payments made to Home and Community Based Services (HCBS) providers that deliver physical and behavioral health services in the home or community. The Supplemental Payment program is part of the Home and Community Services Spending Plan and Narrative.
The Supplemental Payment program is funded from Section 9817 of the American Rescue Plan Act of 2021, which provides states with a one year 10-percentage point increase to the federal medical assistance percentage (FMAP) for certain Medicaid expenditures that meet the ARPA definition of HCBS. Some of the additional federal funding that is provided through the FMAP increase will then be used to distribute Supplemental Payments to Home and Community Based providers.
Montana is implementing the Supplemental Payment program to support maintaining a stable workforce and preserve significantly impacted home and community-based service behavioral health provider networks. These payments are intended to support providers with the increased costs of hazard/retention pay, higher staffing levels, and personal protective equipment and other supplies.
Supplemental payments will be issued for services that contains direct care activities which are those that include a direct care/personal assistance component. For a complete list of Provider Types and services that qualify for supplemental payments, please see ARPA Provider and Service List.
The Supplemental Payment Program will span 2 years and consist of two phases.
Phase 1: 04/01/2021 - 12/31/2021
Providers do not need to take action to participate in Phase 1 of the Supplemental Payment program. DPHHS staff will perform necessary data extractions to issue Phase 1 Supplemental Payments. The payment schedule in Phase 1 consists of two periods.
- Phase 1: Period 1: 4/01/2021 - 9/30/2021
HCBS Providers will be issued a 15% supplemental payment calculated from specific Medicaid services for dates of service between 04/1/2021 and 09/30/2021 and billed by 10/31/2021.
- Phase 1: Period 2: 10/01/2021 - 12/31/2021
HCBS Providers will be issued a 12% supplemental payment calculated from specific Medicaid services for dates of service between 10/01/2021 and 12/31/2021 and billed by 01/31/2022.
Phase 2: 1/1/2022 - 3/31/2023
To participate in Phase 2, HCBS providers will be expected to sustain or increase service delivery and invest in workforce recruitment and retention, as well as demonstrate that the cost of delivering services during the applicable timeframe exceeds standard Medicaid payments.
HCBS Providers will submit a Provider Agreement Form to DPHHS, which will allow providers to opt into the receipt of Phase 2 supplemental payments by agreeing to the conditions of Phase 2. Providers who have opted into Phase 2 will be required to submit a quarterly attestation and quarterly schedule demonstrating that costs exceed Medicaid payments will be issued supplemental payments. The payment schedule for Phase 2 consists of three periods.
- Phase 2: Period 1: 01/01/2022 - 3/31/2022
HCBS Providers who opt in and supply a quarterly schedule demonstrating costs exceed Medicaid payments will be issued a 12% supplemental payment calculated from specific Medicaid services for dates of service between 01/01/2022 and 03/31/2022.
- Phase 2: Period 2: 04/01/2022 - 9/30/2022
HCBS Providers who opt in and supply a quarterly schedule demonstrating costs exceed Medicaid payments will be issued an 8% supplemental payment calculated from specific Medicaid services for dates of service between 04/01/2022 and 09/30/2022.
- Phase 2: Period 3: 10/01/2022 - 03/31/2023
HCBS Providers who opt in and supply a quarterly schedule demonstrating costs exceed Medicaid payments will be issued a 4% supplemental payment calculated from specific Medicaid services for dates of service between 10/01/2022 and 03/31/2023.
| Phase/Period | Services Delivered Date Span |
Services Billed By | Attestation/Quarterly Schedule Submitted By |
Percentage Payment |
|---|---|---|---|---|
| Phase 2, Period 1 | 01/01/2022 - 3/31/2022 | 04/30/2022 | 5/16/2022 | Up to 12% |
| Phase 2, Period 2, Quarter 1 |
04/01/2022 - 6/30/2022 | 07/31/2022 | 08/15/2022 | Up to 8% |
| Phase 2, Period 2, Quarter 2 |
07/01/2022 - 09/30/2022 | 10/31/2022 | 11/15/2022 | Up to 8% |
| Phase 2, Period 3, Quarter 1 |
10/01/2022 - 12/31/2022 | 01/31/2023 | 02/15/2023 | Up to 4% |
| Phase 2, Period 3, Quarter 2 |
01/01/2023 - 03/31/2023 | 04/30/2023 | 05/15/2023 | Up to 4% |
Resources
- Supplemental Payment Program Overview
- Supplemental Payment FAQ
- ARPA Provider and Service List - November 23, 2021
Phase 2 Materials
- Quarterly Schedule Attestation
- Supplemental Payment Provider Agreement - Phase 2
- Supplemental Payment– Phase 2 Quarterly Schedule Example
Provider Presentations
- HCBS Supplemental Payment Project - November 19, 2021
- HCBS Supplemental Payment Project - September 17, 2021
- HCBS Supplemental Payment Project Phase 2 - April 22, 2022
Memos