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Extends and broadens a Medicaid rule that requires minimum payment rates for primary care so certain primary-care services are paid at least at Medicare Part B levels and adds more provider types covered. It also tightens managed-care contract requirements to ensure those payments are made and documented, orders an HHS study comparing child enrollment, provider counts, and Medicaid primary-care payments before and after the extension, and expresses a nonbinding preference that EPSDT care follow the American Academy of Pediatrics Bright Futures guidance.
The bill raises primary care Medicaid payment rates and increases monitoring and guidance to improve access and quality—helping providers and Medicaid enrollees—while raising Medicaid costs and administrative burdens for states and payers and offering limited funding/enforcement for implementation.
Primary care clinicians (physicians, NPs, PAs, CNMs, APRNs) will receive at least 100% of Medicare Part B rates for covered primary care services during the statute period, increasing provider reimbursement and revenue.
Medicaid beneficiaries, especially in underserved areas, may gain improved access to primary care as higher payment rates make more providers willing to accept Medicaid patients.
Rural health clinics and federally qualified health centers (FQHCs) may strengthen service capacity in underserved and rural communities because higher Medicaid payments improve financial stability.
Taxpayers and state budgets will face higher federal and state Medicaid spending to support the higher payment floor, potentially forcing states to reallocate funds, raise taxes, or cut other services.
State Medicaid agencies and managed-care organizations will face additional administrative burdens and compliance requirements to document contract modifications and compile payment/enrollment data for HHS, increasing paperwork and operational costs.
Hospitals and Medicaid patients may see reduced or more complex higher-rate payments for some emergency department care because ED services are excluded from the primary care definition, complicating billing and reimbursement for ED-based primary care services.
Introduced February 18, 2025 by Kim Schrier · Last progress February 18, 2025