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15 States Will Continue Medicaid Payment Parity

 

Higher Medicaid payment rates will continue in 15 states, according to survey data released by the Kaiser Family Foundation. The higher rates, known as the primary care bump, were established by Section 1202 of the Affordable Care Act, which requires state Medicaid programs to reimburse family, internal medicine, and pediatric physicians at rates at least equal to what Medicare would pay for primary care services. The provision went into effect in 2013 and expires at the end of 2014. The survey data also showed that 22 states will not continue to pay higher Medicaid rates, and 14 states are undecided.

While the association supports continued higher Medicaid rates, it appears unlikely that the provision will be extended before it expires Dec. 31, even though some states have reported increased access to care due to the bump. For example, during a Kaiser Family Foundation briefing on Medicaid spending, Connecticut’s Medicaid director said that the state saw a huge uptick in primary care.

If Section 1202 has had an impact on your hospital, please let us know. Contact Shawn Gremminger, director of legislative affairs, at sgremminger@essentialhospitals.org or 202.585.0112 with feedback or questions.

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