Alaska Statutes
Alaska Stat. § 47.07.070 (2026)
Payment rates for health facilities
✓ current as of July 2026
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Sec. 47.07.070. Payment rates for health facilities.
(a) The department shall, by regulation, set rates of payment for health facilities under this chapter and AS 47.25.120 — 47.25.300 in accordance with 42 U.S.C. 1396 (Title XIX, Social Security Act, Medical Assistance) and this section. A rate established under this section takes effect under AS 44.62 (Administrative Procedure Act) but not until approved in writing by the commissioner. The commissioner may delegate the performance of these functions.
(b) In determining the rates of payment for health facilities for a fiscal year, the department shall, within the limit of appropriations made by the legislature for the department's programs under this chapter and under AS 47.25.120 — 47.25.300 for that fiscal year, including anticipated available federal revenue for that fiscal year, set rates for facilities that are based on
(1) reasonable costs related to patient care; and
(2) audit and inspection results and reports, when the audit or inspection is conducted under AS 47.07.074.
(c) This section does not apply to the minimum daily reimbursement rate specified by law under AS 47.24.017 or AS 47.25.195(e) for assisted living homes.
(a) The department shall, by regulation, set rates of payment for health facilities under this chapter and AS 47.25.120 — 47.25.300 in accordance with 42 U.S.C. 1396 (Title XIX, Social Security Act, Medical Assistance) and this section. A rate established under this section takes effect under AS 44.62 (Administrative Procedure Act) but not until approved in writing by the commissioner. The commissioner may delegate the performance of these functions.
(b) In determining the rates of payment for health facilities for a fiscal year, the department shall, within the limit of appropriations made by the legislature for the department's programs under this chapter and under AS 47.25.120 — 47.25.300 for that fiscal year, including anticipated available federal revenue for that fiscal year, set rates for facilities that are based on
(1) reasonable costs related to patient care; and
(2) audit and inspection results and reports, when the audit or inspection is conducted under AS 47.07.074.
(c) This section does not apply to the minimum daily reimbursement rate specified by law under AS 47.24.017 or AS 47.25.195(e) for assisted living homes.
Notes of Decisions
Cited in 6
cases, 1990–2012 · leading case: Samissa Anchorage, Inc. v. Dep't of Health & Soc. Servs., 57 P.3d 676 (Alaska 2002).
Samissa Anchorage, Inc. v. Dep't of Health & Soc. Servs., 57 P.3d 676 (Alaska 2002). “INTRODUCTION The State of Alaska made additional payments to a medical services provider after the provider brought successful administrative claims against the state to increase the Medicaid reimbursement rates payable under AS 47.07.070. Does AS 09.50.280 require the state to…”
City of Cordova v. Medicaid Rate Comm'n, 789 P.2d 346 (Alaska 1990). “The superior court’s decision to grant the State relief prospectively turns on its interpretation of AS 47.07.070. 4 That statute provides: *350 (a) The commission shall determine prospectively the rate of payment to a health facility under this chapter and AS 47.”
State, Dep't of Health & Soc. Servs. v. North Star Hosp., 280 P.3d 575 (Alaska 2012). “170(b)(12), which establishes which home office costs are to be considered, was in conflict with AS 47.07.070, which requires that the rate be based upon reasonable costs.”
State, Dep't of Health & Soc. Servs., Medicaid Rate Comm'n v. Hope Cottages, Inc., 863 P.2d 246 (Alaska 1993). “See AS 47.07.070; ch. 95, § 3, SLA 1983. In 1988 Alaska’s statute provided: The commission shall determine prospectively the rate of payment to a health facility under this chapter and AS 47.”
State, Dep't of Health & Soc. Servs. v. Valley Hosp. Ass'n, 116 P.3d 580 (Alaska 2005). “In any event, the terms of our remand give DHSS discretion to set any rate that is a "fair rate for reasonable costs incurred by the facility," using the most accurate data now reasonably available.”
Dept. of Health & Soc. Ser. v. Valley Hosp., 116 P.3d 580 (Alaska 2005). “In any event, the terms of our remand give DHSS discretion to set any rate that is a "fair rate for reasonable costs incurred by the facility," using the most accurate data now reasonably available.”
— Alaska Stat. § 47.07.070(a) — 4 cases
State, Dep't of Health & Soc. Servs. v. Valley Hosp. Ass'n, 116 P.3d 580 (Alaska 2005). “In any event, the terms of our remand give DHSS discretion to set any rate that is a "fair rate for reasonable costs incurred by the facility," using the most accurate data now reasonably available.”
City of Cordova v. Medicaid Rate Comm'n, 789 P.2d 346 (Alaska 1990). “The superior court’s decision to grant the State relief prospectively turns on its interpretation of AS 47.07.070. 4 That statute provides: *350 (a) The commission shall determine prospectively the rate of payment to a health facility under this chapter and AS 47.”
State, Dep't of Health & Soc. Servs., Medicaid Rate Comm'n v. Hope Cottages, Inc., 863 P.2d 246 (Alaska 1993). “See AS 47.07.070; ch. 95, § 3, SLA 1983. In 1988 Alaska’s statute provided: The commission shall determine prospectively the rate of payment to a health facility under this chapter and AS 47.”
Dept. of Health & Soc. Ser. v. Valley Hosp., 116 P.3d 580 (Alaska 2005). “In any event, the terms of our remand give DHSS discretion to set any rate that is a "fair rate for reasonable costs incurred by the facility," using the most accurate data now reasonably available.”
— Alaska Stat. § 47.07.070(b) — 1 case
State, Dep't of Health & Soc. Servs. v. North Star Hosp., 280 P.3d 575 (Alaska 2012). “170(b)(12), which establishes which home office costs are to be considered, was in conflict with AS 47.07.070, which requires that the rate be based upon reasonable costs.”
— Alaska Stat. § 47.07.070(b)(1) — 2 cases
Samissa Anchorage, Inc. v. Dep't of Health & Soc. Servs., 57 P.3d 676 (Alaska 2002). “INTRODUCTION The State of Alaska made additional payments to a medical services provider after the provider brought successful administrative claims against the state to increase the Medicaid reimbursement rates payable under AS 47.07.070. Does AS 09.50.280 require the state to…”
State, Dep't of Health & Soc. Servs. v. North Star Hosp., 280 P.3d 575 (Alaska 2012). “170(b)(12), which establishes which home office costs are to be considered, was in conflict with AS 47.07.070, which requires that the rate be based upon reasonable costs.”
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