Should the State enact a law that automatically adjusts Medicaid reimbursement rates to health care providers?
• Any change in public policy to include regular adjustments to reimbursement rates adjustment to offset inflationary costs must be met with careful fiscal scrutiny. Deferring the discretion to implement or not implement a Medicaid Fee Schedule rate increase to an annual, biennial, or any other formula or mechanism that does not provide the Legislature with the ability to approve or disapprove of an increase in reimbursement rates could potentially pose a significant detrimental impact on the long term fiscal well being of the State’s finances. However, if health care providers and facilities are to continue to provide health care services to the neediest persons in the State, they must be adequately compensated for their services and not be required to provide such services at a financial loss. To the extent the state and federal government are financially able, each government should strive to mitigate the financial losses being incurred by health care providers and facilities that p
