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First component in Governor’s...

First component in Governor’s Medicaid reimbursement plan gains CMS approval

By: Sarah Ulmer - December 13, 2023

(Photo provided by Governor Tate Reeves office)

The plan put forward by Governor Tate Reeves encompassed two components to infuse additional dollars into Mississippi’s hospitals without increasing Medicaid rolls.

The Centers for Medicare and Medicaid Services (CMS) has approved the first component of Governor Tate Reeves’ reimbursement reform plan for Medicaid in Mississippi.

The two-part plan, which was initially announced in September, aims to generate roughly $700 million for hospitals across the Magnolia State.

CMS has approved the first proposal which would increase the Mississippi Hospital Access Program reimbursement rate for Medicaid patients who participate in the managed care system. Under the plan, hospitals will now be reimbursed near the average commercial rate for services provided through managed care.

“This plan is going to strengthen our state’s healthcare system and I’m glad that we could get it done for the people of Mississippi,” said Governor Reeves. “This is the product of meetings with a range of medical professionals and healthcare leaders, and I’m truly thankful to all of them for helping to get us to today.”

The second component of the plan, which would supplement the Medicaid base payment rates by reimbursing inpatient and outpatient services in the fee-for-service delivery system, still awaits approval from CMS.

When initially announced, hospital officials including the University of Mississippi Medical Center, North Mississippi Health Services, and Merit Health showed support for the Governor’s proposals. Drew Snyder, Director for the Mississippi Division of Medicaid, was also among those backing the plan.

While Governor Reeves continues to oppose the expansion of Medicaid in Mississippi, he said these initiatives will provide support for hospitals without increasing the welfare rolls.

“To me, expansion of Obamacare, while it adds a lot of people to welfare does not have the kind of financial impact that many think it will have,” said Reeves in the September press conference.

It is anticipated that in order for Hospitals to receive this additional money, provider assessments will be $178 million in order to draw on the net $680 million.

About the Author(s)
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Sarah Ulmer

Sarah is a Mississippi native, born and raised in Madison. She is a graduate of Mississippi State University, where she studied Communications, with an emphasis in Broadcasting and Journalism. Sarah’s experience spans multiple mediums, including extensive videography with both at home and overseas, broadcasting daily news, and hosting a live radio show. In 2017, Sarah became a member of the Capitol Press Corp in Mississippi and has faithfully covered the decisions being made by leaders on some of the most important issues facing our state. Email Sarah: