Gov. Tate Reeves’ newly-approved Medicaid plan would make expansion more lucrative for hospitals

Although Reeves remains adamantly opposed to traditional Medicaid expansion, which is currently being considered by the Legislature, his newly-approved initiative would make an expansion program more lucrative for Mississippi hospitals. Thursday’s announcement means Medicaid will reimburse hospitals for inpatient and outpatient fee-for-service care at Medicare rates — closer to rates commercial insurance plans pay — instead of Medicaid’s lower base rate. Previously, the federal Centers for Medicaid Services approved Reeves’ request to pay hospitals near average commercial insurance rates for Medicaid managed care services. All told, Reeves said, hospitals will receive an estimated increase of $700 million. In exchange, the hospitals will be taxed to cover the state’s share of the increased Medicaid spending.