The move is line with the 2021 Medicaid Tech bill.
The Mississippi Division of Medicaid announced that they will freeze provider rate reimbursements at their current levels effective July 1, 2021, in accordance with the 2021 Legislative Medicaid Technical amendments bill.
Not everyone was happy with the Legislature’s decision to freeze these rates. Governor Tate Reeves took to Twitter to express his concern of how the freeze would impact providers and consumers.
Proactive management at Medicaid has reduced total state spending from $1.012 billion to $814 million. Sadly, the Legislature changed the rules of the game this year. Taxpayers are going to lose. Good MS providers – like doctors and pharmacists – are going to lose too. (1/2)
— Tate Reeves (@tatereeves) June 30, 2021
Every three years the Legislature revisits the structure and operation of the Division of Medicaid. This particular stipulation comes from Mississippi Code Section 43-13-117(D), which as amended by Senate Bill 2799 during the 2021 session.
Therefore, the Mississippi Division of Medicaid will freeze all provider reimbursement rates and this rate-freeze will remain in effect until the Legislature authorizes rate adjustments.
According to the code section, “payments or rates of reimbursement to providers rendering care or services authorized under this section to recipients shall not be increased, decreased or otherwise changed from the levels in effect on July 1, 2021, unless they are authorized by an amendment to this section by the Legislature.”
The change for a rate freeze came during the conference process between House and Senate members and was included in the Conference Report. Sources say the recommendation came from the House of Representatives.
The 2021 Medicaid Tech bill did, however, provide a rate increase up to 5% for some providers. Even with that change, those providers could still feel an increase come July 1.
There was also a 5% bump for dentists covering preventative services, but that bump will not go into effect until 2022.
For more information on Medicaid services, see DOM’s Administrative Code: Administrative Code | Mississippi Division of Medicaid (ms.gov)