Michigan Nursing Home Administrator (NHA) Practice Exam

What happens to the Medicaid provider agreement upon the expiration of annual certification?

1. The agreement is automatically renewed

2. The facility must reapply for a new agreement

3. The agreement also expires

4. The agreement is expanded to include new services

The correct answer is: The agreement also expires

The Medicaid provider agreement is closely tied to the facility's certification status. When the annual certification expires, it indicates that the facility is no longer recognized as meeting the required standards for Medicaid participation. Therefore, the provider agreement effectively becomes void; thus, the agreement also expires as a direct consequence of the loss of certification. If the facility wishes to continue participating in the Medicaid program, it must go through the re-certification process to demonstrate compliance with the necessary standards. Options such as automatic renewal or expansion of services do not apply in this context, as continued participation hinges on maintaining the requisite certification.