Table 6. State Provisions for Updating Medicaid PPS Rates Between Rebasing Calculations.
| State | Factors Used to Update Payment |
|---|---|
| Colorado | Medicare market basket, three geographic caps |
| Illinois | Medicare updates |
| Iowa | Inflation update factors (discontinued July 1,1993) |
| Kansas | Separate ancillary and accommodation inflation rates |
| Michigan | Medicare market basket, ceilings/caps are imposed |
| Minnesota | Minnesota market basket |
| Montana | Not available |
| New Hampshire | Inflation adjustment |
| New Jersey | TEFRA update (inflation) and technology update factors |
| New Mexico | PPS update factor |
| New York | DRG creep factor (1 percent case-mix change cap), peer group average charges/costs, trend and roll factors, volume adjustments, cost base enhancements |
| North Dakota | Not available |
| Ohio | Index based on weighted average of 17 components indexes including both consumer and producer price indexes and both national and regional indexes |
| Oregon | Medicare market basket; capped |
| Pennsylvania | Medicare market basket |
| South Carolina | Lowest of three inflation options (Medicare market basket, TEFRA update, policy factor) |
| South Dakota | Inflation factors, capped |
| Texas | Inflation index (three options), budgetary reduction factor |
| Utah | Factors for economic trends and conditions |
| Washington | Caps by peer group, Medicare market basket |
| Wisconsin | Factor for Inflation |
NOTES: TEFRA is Tax Equity and Fiscal Responsibility Act. PPS is prospective payment system. DRG is diagnosis-related group.
SOURCE: Carter, G.M., Jacobson, P.D., Kominski, G.F., and Perry, M.J., RAND, 1994.