MS Division of Medicaid Cuts Reimbursement Rates for Providers

As part of balancing the state budget, in November Governor Barbour cut Mississippi Division of Medicaid (DOM) budget by 5%.      In a meeting today, DOM revealed reduction of reimbursement rates to service providers to meet the $14.6 million budget reduction of state funds.  This reduction is in addition to $4.2 million previously cut, bringing the total DOM administrative reduction to 8% for Fiscal Year 2010.  DOM administration will propose an amendment to the state plan by Friday, March 26, 2010, issuing a temporary rule reducing reimbursement rates effective April 1, 2010 through June 30, 2010.  Dr. Robinson emphasized that this rate reduction is temporary.  Reimbursement rates will return to the previous level at the beginning of the new fiscal year, July 1, 2010.  The state plan and distribution model has been approved by Center for Medicare Medicaid Services.  Attached you will find a spread sheet showing the amount and  percentage of cuts to each provider type.  Note the total impact to providers is six times the reduction of state dollars due to loss of the federal matching funds.  An example of the impact of this rate reduction follows: 

Therapy Services outside of Home Health

CPT Code 92057

Reimbursement Rate                                     $50.00

5% Assessment + 15% reduction                               -$10.00

Reduced Reimbursement Rate                 $40.00

 MSHA Lobbyist, Stephen Clay, reported that the current federal match of 6 to 1 is due to stimulus monies.  December 31, 2010, is the cutoff date for this funding, returning the federal match rate to 4

to 1.  The Jobs Bill currently in conference in Congress would extend the stimulus package for Medicaid funding through the end of Fiscal Year 2011, continuing the 6 to 1 federal match, adding $187 million to the 2011 Medicaid budget.  We will continue to monitor the state budget and federal programs and alert you to any further changes.


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