(Photo provided by Governor Tate Reeves office)
- The estimated result of the proposal will provide an additional $160 million for hospitals annually, which is $23 million more than originally projected.
In September 2023, Governor Tate Reeves (R) announced a set of Medicaid reimbursement reforms estimated to generate over $700 million in new revenue for hospitals in Mississippi.
The first proposal, which was approved by the Centers for Medicare and Medicaid Services (CMS) in December 2023, increases 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.
The second proposal announced by Reeves last year would supplement Medicaid base payment rates for hospitals by reimbursing inpatient and outpatient hospital services in the fee-for-service system up to the Medicare upper payment limit.
On Thursday, the Governor’s office announced that CMS had approved the second proposal. Of note, the estimated result of the proposal will provide an additional $160 million for hospitals annually, which is $23 million more than originally projected.
Governor Reeves marked the approval saying this is another good day for Mississippi’s healthcare system.
“This additional $160 million will go a long way towards further strengthening hospitals across our state. I’d like to thank all of the medical professionals and healthcare leaders who helped get us to today,” Reeves said in a statement.
The Governor’s office says the Mississippi Division of Medicaid is taking steps to deliver the first round of payments to hospitals in the coming weeks.
News of the second approval comes as lawmakers continue to debate whether to expand Medicaid in Mississippi as the 2024 legislative session winds down. Talks are underway on if and how the legislation will be advanced before sine die.
