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Overview
The Rural Health Transformation Program (RHTP) Assisted Living Facility (ALF) Special Needs Incentive Payment Program supports assisted living providers caring for Medicaid beneficiaries receiving care in an ALF diagnosed with Alzheimer's disease or related dementias.
The program creates a rate add-on designed to help facilities meet the increased staffing, care coordination, and service demands associated with higher-acuity residents while encouraging residents to remain in their local communities whenever possible.
The program provides enhanced Medicaid reimbursement to eligible ALFs serving higher-acuity residents in rural communities.
Program GoalsThe program was developed to strengthen access to specialized memory care services in rural Nebraska communities. By providing additional reimbursement support, Nebraska aims to:
- Increase local placement opportunities for residents with dementia-related conditions
- Reduce unnecessary relocation to urban facilities
- Support sustainability of rural assisted living providers
- Improve continuity of care for Medicaid participants
- Enhance access to specialized services closer to family and community support systems
Eligibility Requirements
ALFs may qualify for the incentive payments if they:
- Hold an active Nebraska assisted living facility license
- Serve Medicaid beneficiaries
- Provide care to residents with a documented primary diagnosis of Alzheimer's disease or related dementias
- Maintain required physician documentation and reporting records
- Participate in Therap reporting and Medicaid claims submission processes
Payment Information
Eligible beneficiaries at qualifying ALFs receive a $87 per resident, per day reimbursement rate add-on.
Payments are issued directly by the Nebraska Department of Health and Human Services (DHHS).
Retroactive Eligibility
Payments may apply retroactively to dates of service on or after December 29, 2025.
Monthly Processing
DHHS will implement monthly payment processing for approved service days and provide an explanation of payment for any payments issued.
Monitoring & Long-Term Sustainability
DHHS will monitor program utilization, access outcomes, and fiscal performance through Fiscal Year 2031. This will allow Nebraska to evaluate program effectiveness and build a sustainable, long-term reimbursement model for rural memory care services.
Contact Us
For questions or more information, please contact DHHS.RHTPALF@nebraska.gov.
The Rural Health Transformation Program is supported by the Centers for Medicare & Medicaid Services (CMS) of the U.S. Department of Health and Human Services (US HHS) as part of a financial assistance award totaling $218,529,075.01 with 100 percent funded by CMS/US HHS. The contents are those of the Nebraska Department of Health and Human Services (DHHS) and do not necessarily represent the official views of, nor an endorsement by, CMS/US HHS, or the U.S. Government.