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Resources: Capital Rate Component, Personal Needs Allowance, Scams and CBSA

Posted by Admin Posted on June 24 2024

Capital Rate Component

National Valuation Consultants, Inc (NVC) completed the appraisal process for Kentucky nursing facilities. These reappraisals will be used to determine the facility’s capital component as of July 1, 2024. On average, SNFs are seeing a decrease in their capital rate component of $1. The decrease is related to the inflation factors applied since the 2019 appraisal. There are discussions on how the capital rate components can be calculated differently prior to the next capital rate calculation that will be completed in 2029.


Personal Needs Allowance Increase at 7/1/24

As part of House Bill 6, Medicaid is increasing the Personal Needs allowance from $40 to $60. Below is the wording from the House Bill.

(24) Personal Needs Allowance: Included in the above General Fund 5 appropriation is $3,775,000 in each fiscal year to increase the Personal Needs Allowance 6 from $40 to $60 per month effective July 1, 2024. Notwithstanding KRS 45.229, any 7 portion of General Fund not expended for this purpose shall lapse to the Budget Reserve 8 Trust Fund Account (KRS 48.705). Mandated reports shall be submitted pursuant to Part 9 III, 24. of this Act.


Medical Records Request Scam

CMS identified phishing scams for medical records. This may include scammers faxing you fraudulent medical records requests to get you to send patient records in response. See CMS Medicare Learning Network link below

Click here to see the CMS Medicare Learning Network.


KY Medicaid CBSA changes effective July 1, 2024

907 KAR 1:065 Payments for price-based nursing facility services states that on July 1 of each year, the department shall utilize the most recent Federal Office of Management and Budget’s core based statistical area (CBSA) designations to classify an NF as being in an urban or rural area for Medicaid rate setting purposes.

An updated OMB bulletin no. 23-01 was published July 21, 2023 and will impact nursing facilities July 1, 2024 rates in the following counties:

•       Hancock and Henderson will transition from Urban to Rural Status

•       Ballard, Carlisle, Lawrence, Livingston, McCracken, and Nelson will transition from Rural to Urban status

If you have questions regarding this please contact our office. (270) 726-4033 or email us at:


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