Across the Board (ATB) Medicaid Payment Reductions

February 25, 2020

Here is the latest state communication related to implementation of the 1% Across the Board (ATB) reduction to certain Medicaid Programs and Services that we first discussed with all members last month.   Since then we’ve been waiting for definitive guidance regarding which areas of the service delivery system would be impacted by the reduction.

Effective for dates of service on or after January 1, 2020, through March 31, 2020, and each State Fiscal Year thereafter, all non-exempt Department of Health state funds Medicaid payments will be uniformly reduced by 1%. For services subject to the 1% reduction, all fee-for service payments will receive a decrease to Medicaid checks and/or Electronic Funds Transfers for dates of services on or after January 1, 2020. Conversely, managed care payments to health plans will be reduced through a 1% reduction to premium rates effective January 1, 2020. Remittances will reflect the 1% reduction (appearing as an “FC2” recoupment) starting in cycle 2219, which has a check release date of 3/18/2020.Please Click Here to read the full provider notice