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Governor Pence Announces Increase in Medicaid Reimbursement Rates

Press Release

Location: Indianapolis, IN

Governor Mike Pence announced today that the State of Indiana will increase Medicaid reimbursement rates for the state's health care providers who saw their rates cut in 2010. The new rates will take effect in January 2014.

"A healthy Indiana is a strong Indiana," said Pence. "Thanks to the state's solid fiscal condition, we are able to increase the reimbursement rates, and we encourage providers to make investments that will improve the quality of care for Medicaid recipients and all Hoosiers."

Health care providers welcomed the news.

"This decision is very important for our hospitals--it provides a more solid financial footing at this critical time given continued federal Medicare cuts," said Doug Leonard, Indiana Hospital Association President. "This is even more significant considering hospitals in other states are facing even further Medicaid cuts while Indiana is able to reverse them."

The 2010 reductions will be eliminated completely for providers on a number of services including dental, vision, medical transportation, lab and radiology, speech and hearing therapy, freestanding dialysis and medical supplies. Rates will be restored in part for other providers including hospitals, nursing facilities, home health care, immediate care and intellectual disability facilities.

The State reduced Medicaid reimbursement rates during the 2010 budget process as a cost containment measure. Indiana currently has 1.1 million Medicaid recipients.

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