By: Chloe Leshner


PROVIDENCE, R.I. (WLNE) -- The snafu that almost cost the state $24 million has been dismissed. A settlement has been reached between state lawmakers and dozens of nursing homes over Medicaid cuts.

With millions of dollars on the line this clears up the fall out from the state missing its deadline to appeal a lawsuit filed by nursing homes over reimbursement rates. The 59 nursing homes gave up millions of dollars owed to them in exchange for an increase in Medicaid reimbursement rates. Starting July 1 there will be a 1.5 % increase followed by an additional 1% increase on October 1st.

This comes after the nursing homes sued the state arguing their Medicaid rates were miscalculated using a method that was intended to last only for 1 year, not several. The court agreed which could have cost Rhode Island $24 million.

In a statement to ABC 6 News Governor Raimondo says in part, "this settlement will give clarity to budget writers in future years and provide nursing homes with a modest rate increase this year."

A spokesperson for the nursing homes agrees that this was a good move.

"I'm very pleased that a settlement was reached quickly, a settlement that I think is fair to all sides and now we can get back to doing what we do best, taking care of the elderly for us and finishing up the legislation for the general assembly," says Virginia Burke with the RI Health Care Association.

The state budget included cuts to nursing homes to make up for the money lost in the lawsuit but since its now dismissed, the nursing homes will instead get an increase. Burke says the rate increases will equal out to about $9 million in the next year.

The settlement will be official when the budget is signed into law.

(C) WLNE/ABC 6 2018