Skip to content

Suspending Inflation Adjustments for Medicaid Rates in SFY 2017

The Alaska Department of Health and Social Services (DHSS) adopted regulations last year to suspend inflationary adjustments for Medicaid rates in state fiscal year 2016. While the department hoped that this suspension would only be necessary for one fiscal year, significant fiscal challenges continue to exist. Accordingly, DHSS has determined that it must again implement cost containment measures under AS 47.07.036 and will need to suspend inflation adjustments for Medicaid rates in state fiscal year 2017.

This policy will only target inflation increases. Regular procedures for reestablishing or substantively revising (i.e. “rebasing”) rates will not be affected. Regulations to implement this suspension will be issued. In order to maintain access to care and preserve eligibility and covered services, this action only impacts annual inflationary increases, so most payment rates that are currently in effect for state fiscal year 2016 will essentially remain the same for state fiscal year 2017.