Mississippi Governor Tate Reeves has announced two Medicaid reimbursement reforms to help hospitals get money for taking care of Medicaid patients.

These reforms could provide hospitals about $700m every year.

One of these two initiatives include the Mississippi Hospital Access Program (MHAP) that will allow direct payments to hospitals serving patients in the Mississippi Medicaid managed care delivery system.

Through these directed payments, hospitals would receive reimbursements close to the typical rate paid by commercial insurance providers.

The other initiative called Supplementing Medicaid base payment rates will supplement Medicaid base payment rates for inpatient and outpatient hospital services to the Medicare upper payment limit.

Hospitals are expected to net an increase of $689m with these efforts, upon factoring in capital the hospital made to fund the efforts.

These changes await clearance from the federal Centers for Medicare and Medicaid Services (CMS) and if approved, will be effective from 1 July 2023.

Reeves said: “Over the course of my tenure, we have constantly looked for solutions to Mississippi’s pressing health concerns.

“We’ve met with hospitals and doctors, insurance experts and community leaders.

“Today’s action will have a major impact, but this is still just the beginning.

“Our eyes are set on the future, and we aim to continue ushering in reforms that strengthen Mississippi’s healthcare system no matter where you live in the state.”

He further noted: “The plan that I’m announcing today is a result of the hard work of the folks standing behind me.

“Over the last four to five months, we’ve worked to put together a proposal that we believe can have a real impact on Mississippi hospitals. I’m thankful for their public service.”