Governor Reeves announces Medicaid Reimbursement Reforms

Governor Tate Reeves announced a series of Medicaid reimbursement reforms in Mississippi. These reforms are estimated to generate approximately $700 million for hospitals across the state.

The first initiative, known as the Mississippi Hospital Access Program, will provide payments to hospitals serving patients in the Mississippi Medicaid managed care delivery system. With these directed payments, hospitals would be reimbursed near the average commercial rate.

The second initiative will supplement Medicaid base payment rates for hospitals by reimbursing inpatient and outpatient hospital services in the fee-for-service system. This payment mechanism is calculated similarly to the one-time emergency payment of $137 million that hospitals received through Mississippi Medicaid in May.

Hospitals are projected to net an increase of $698 million through these initiatives after accounting for the funds the hospital made to help finance the initiatives.

Kent Nicaud from Memorial Hospital was a member of the committee who put together the proposal.