Indiana To Boost Medicaid Reimbursement Rate

Reimbursement rates to hospitals were cut 5 percent in 2010. The state plans to restoring 2 percent of those cuts next year.

hospital bed

Photo: Nathan and Jenny (Flickr)

Hospital officials are praising the increase, saying it gives them more solid footing during a time when Congress is considering cuts to Medicaid at the federal level.

Governor Mike Pence announced Tuesday the state is increasing Medicaid reimbursement rates to health care providers beginning in January 2014.

Indiana cut the Medicaid reimbursement rate 5 percent in 2010, meaning hospitals, doctors and clinics got less money when seeing and treating Medicaid patients.  The cuts were made as the state struggled with tighter budgets from the recession.

Indiana Hospital Association President Doug Leonard says the increase announced Wednesday restores part of the cut.

“So this is a reversal of 2 percent of that cut, or effectively saying the 5 percent is being reduced to 3 percent,” he says.

Leonard says the 2010 cuts forced some hospitals to stop providing some services, notably obstetrical units in some rural hospitals.  He says restoring some of the Medicaid reimbursement is important as health care providers continue to face cuts from other sources.

“[It's] $340 billion from Medicare for the ACA and now the sequester on top of that so any attempt to reverse some of those cuts in a positive sign,” he says.

The governor’s office says the reimbursement rate increase is made possible through a higher Medicaid appropriation in the recently passed state budget.

Brandon Smith, IPBS

Brandon Smith, IPBS has previously worked as a reporter and anchor for KBIA Radio in Columbia, MO, and at WSPY Radio in Plano, IL as a show host, reporter, producer and anchor. Brandon graduated from the University of Missouri-Columbia with a Bachelor of Journalism in 2010, with minors in political science and history. He was born and raised in Chicago.

View all posts by this author »

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From

Search News

Stay Connected

RSS e-mail itunes Facebook Twitter Flickr YouTube

Follow us on Twitter

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Recent Health Stories

Recent Videos

Find Us on Facebook