The Centers for Medicare and Medicaid Services (CMS) has approved the largest component of Governor Tate Reeves’ proposal to provide nearly $700 million to hospitals across the state.
Reeves, joined by Mississippi Division of Medicaid (MDOM) Executive Director Drew Snyder and eight hospital executives, announced the proposal, which he called “sweeping Medicaid reimbursements,” in September.
Despite concerns from leaders in the healthcare industry that CMS would not approve the plan if lawmakers did not first expand Medicaid coverage in Mississippi, the federal agency gave the first leg of the governor’s proposal the green light with no added stipulations.
The newly approved initiative, known as the Mississippi Hospital Access Program (MHAP), will provide direct payments to hospitals serving patients in the Mississippi Medicaid managed care delivery system.
With the directed payments, hospitals would be reimbursed near the average commercial rate, which has been considered the federal ceiling for Medicaid reimbursements.
“This plan is going to strengthen our state’s healthcare system and I’m glad that we could get it done for the people of Mississippi,” Reeves said. “This is the product of meetings with a range of medical professionals and healthcare leaders, and I’m truly thankful to all of them for helping to get us to today”
In total, this component of the plan will generate around $600 million for Mississippi hospitals to draw from.
A second component of the plan supplementing Medicaid hospital payments in the fee-for-service delivery system, which would generate an additional estimated $89 million for medical systems, is still awaiting approval from federal officials.
MDOM plans to deliver the first round of payments to hospitals in the coming weeks. The effective date of the approval is retroactive to July 1.
