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Temporary Medicaid Reimbursement Increase has Physicians on the Fence

Posted by Ron Chapman

The federal health care law will temporarily increase Medicaid reimbursements for physicians by 64% on January 1st, bringing rates more inline with current Medicare reimbursements. With the estimated 25% increase in Medicaid enrollees, ObamaCare is offering the incentive for two years as a way to recruit more Medicaid participating physicians.

While the incentive seems like a good deal at first glance, many physicians are leery about the impact the incentive will have in the long term. Likewise, some states are rejecting the Medicaid expansion completely, Florida being one of them, and others are wary about who will foot the bill after the federal incentives expire in two years. Many States, physicians and Medicaid health plans are eagerly awaiting the final details of the incentive, which have yet to be revealed. To add to the uncertainty, presidential nominee Mitt Romney promises to repeal the federal health care law, giving states more control over Medicaid programs, if elected. What is certain is that Medicaid physicians are likely to be on the fence for at least the next two months.

Chapman Law Group is dedicated to the defense of health professionals. We have been practicing healthcare law for over 25 years.