News & Media
Urge Your Senator to Support the Medicaid Primary Care Rate Increase
Budget season in Lansing is in full swing. The Governor presented her budget to the legislature earlier this year and now the House and Senate are working their budgets through their respective chambers. Once the House and Senate pass proposals, negotiations will begin between the legislature and Governor on a final agreement prior to the July first budget deadline.
The Senate MDHHS Subcommittee recently adopted a budget proposal initiated by MSMS which included two new programs aimed at assisting primary care providers as we emerge from the COVID-19 pandemic. The first of these programs is for practices in smaller counties that are facing access to care struggles. The goal would be to infuse these practices with capital, allowing them to get on their financial feet and thrive in their local community long term. The second initiative is a Medicaid uplift for primary care providers. The uplift would total $15 million in general funds and nearly $100 million once federal dollars are included.
The inclusion of these items is a significant development, and we are excited to see that the Senate is actively looking for ways to be supportive of physicians and primary care services. However, it is also important to note that this is the first step in a negotiation process that will play out over the next six to eight weeks and this language could still change. The MSMS Advocacy team will continue to work with the legislature as negotiations continue.
Please consider sending a letter to your Senator asking for support>>
Further details on both these proposals are below.
Rural Independent Primary Care Initiative. The rural independent primary care initiative allocates $7.6 million in general funds for the creation of financial capital to ensure the sustainable operation of physician practices in medically underserved areas. The funding would be awarded through grants and only to practices in counties with a population of fewer than 40,000. No more than $500,000 could be provided to practices in any one county.
These dollars are aimed at helping ensure the sustainable operation of physician practices in medically underserved regions. The grants would fund strategic improvements and investing in infrastructure necessary to serve communities that are at risk of losing medical care or are designated as health care shortage areas.
Primary Care Medicaid Uplift. The primary care Medicaid uplift allocates $15 million in general funds to increase Medicaid reimbursement rates for primary care services. The rates would increase at the greater of either the actual rates paid during the previous fiscal year or at least 95 percent of the Medicare rate received for the services on the date the service is provided.