Section 45 Hospitals: Cost-of-Living Adjustments (COLAs)

Jul 03, 2025

As noticed earlier today, this e-message contains additional information specific to services provided under Section 45. 

In alignment with P.L. 2025, Ch. 388, (Part GGG), MaineCare is increasing certain hospital reimbursement rates to reflect a 1.0% COLA retroactively, effective July 1, 2025.   

Funding for this COLA will be made available to the Department on September 24, 2025, pending a 90-day waiting period that began with the adjournment of Legislature on June 25, 2025.  

The following will be adjusted for this COLA: 

• The inpatient base rates 

• GME add-on rates 

• The inpatient MS-DRG-Based outlier payment threshold 

• Distinct psychiatric and distinct substance use disorder unit per diem inpatient base rates 

New rates will be posted to the rate setting page of the Health PAS Online Portal.  

Billing Guidance 

Providers should continue to bill the current rates. Once new rates are implemented, the Department will reprocess all affected claims.  

For questions, please contact your Provider Relations Specialist.