Mississippi hospitals expected to net $708M annually with CMS plan approval

Mississippi hospitals are projected to see an increase of more than $700 million in annual funds after CMS approved the second component of the state's Medicaid reimbursement plan. 

The second component of the plan supplements 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, according to an April 11 news release from Gov. Tate Reeves' office. Hospitals are expected to see an estimated additional $160 million annually, which is $23 million more than originally projected. 

The first leg of the plan was approved by CMS in December. Under that component, hospitals are reimbursed near the average commercial rate for services provided through the managed care delivery system. That component is projected to generate about $600 million annually for hospitals. 

With the two components together, hospitals are projected to see an increase of $708 million annually, after accounting for the funds the hospitals make to help finance the initiatives, according to the release. 

Mr. Reeves announced the plan in September, following rumblings that a new Legislature would have an open debate on possible Medicaid expansion in 2024. Mr. Reeves is a staunch opponent of expansion and Mississippi is one of 10 states that has not expanded the program under the ACA.   

The rumblings turned out to be accurate. Both the Mississippi House and Senate have introduced and passed Medicaid expansion plans in 2024; both bills involve work requirements. The House recently voted to iron out a compromise with the Senate, Mississippi Today reported April 9.  

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