LouisianaRural clinic payment rules require a specific state appropriation
The signed law directs Louisiana's health department to adjust rural clinic Medicaid payments and report clinic visits, but these rules await a specific state appropriation.
What it does
Once a specific state appropriation takes effect and federal approval is granted, the health department must work to equalize Medicaid payment rates for independent and provider-based rural clinics.
Once the required state appropriation takes effect, type one and type two rural health clinics are subject to a review of need for new or additional facilities, providers, programs, services, or beds.
Once a specific state appropriation for implementation takes effect, the health department must report monthly to the legislature how many visits each type one clinic had and its total spending.
Argument forIf funded and approved, higher payments could narrow the rate gap for independent rural clinics that serve Medicaid patients.
Argument againstIf funded and approved, higher clinic payments could increase state spending, while monthly reports could add work for the health department.
More detail
The law directs the Louisiana Department of Health to equalize Medicaid payment rates for rural health clinics. Independent clinics are type one clinics; provider-based clinics include type two and type three clinics. Sections 1 and 2 take effect only when a separate state law with a specific implementation appropriation takes effect. The payment provisions also require approval by the federal Centers for Medicare and Medicaid Services. In fiscal years 2026–2027 and 2027–2028, the department must increase the prior year's encounter rate for independent clinics by $41.50 each year, with the annual Medicare inflation adjustment. It must take the actions needed to implement the provisions within 90 days after they take effect.
The law makes type one and type two rural health clinics subject to facility need review. The review considers the need for a new or additional facility, provider, program, service, or bed. The review provision takes effect only when a separate state law with a specific implementation appropriation takes effect.
The law requires the Louisiana Department of Health to send the legislature monthly reports on type one clinics. Each report must give the monthly encounter count and total monthly spending for each type one clinic. The reporting provision takes effect only when a separate state law with a specific implementation appropriation takes effect. Reports are due monthly after the provisions take effect.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 8Signed by the Governor Jeff Landry. Becomes Act No. 859.Became Law
- Jun 8Effective date: 06/08/2026.
- Jun 1Signed by the President of the Senate.
- Jun 1Sent to the Governor for executive approval.To Governor
- May 31Enrolled and signed by the Speaker of the House.Minor
- May 29Read by title, roll called, yeas 95, nays 0, Senate amendments concurred in.
- Vote recorded CONCUR IN SENATE AMENDMENTS (#1702). Result: pass.Lower
- May 27Scheduled for concurrence on 05/29/2026.
- May 26Rules suspended. Senate floor amendments read and adopted. Read by title, passed by a vote of 37 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.Passed Senate
- Vote recorded FINAL PASSAGE (#1331). Result: pass.Upper
- May 26Received from the Senate with amendments.Minor
- May 21Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.Minor
- May 20Rules suspended. Recalled from Committee.
- May 20Read by title and referred to the Legislative Bureau.
- May 14Read by title. Recommitted to the Committee on Finance.
- May 13Reported favorably.Minor
- May 6Read second time by title and referred to the Committee on Health and Welfare.Minor
- May 5Read third time by title, roll called on final passage, yeas 91, nays 6. Finally passed, title adopted, ordered to the Senate.Passed House
- Vote recorded FINAL PASSAGE (#861). Result: pass.Lower
- May 5Received in the Senate. Read first time by title and placed on the Calendar for a second reading.Minor
- Apr 29Scheduled for floor debate on 05/05/2026.
- Apr 28Read by title, amended, ordered reengrossed, passed to 3rd reading.Minor
- Apr 27Reported with amendments (14-0).Minor
- Apr 7Read by title, ordered engrossed, recommitted to the Committee on Appropriations.
- Apr 1Reported favorably (9-0).Minor
- Mar 17Read by title, under the rules, referred to the Committee on Health and Welfare.Minor
- Mar 16Read by title. Lies over under the rules.Introduced
Healthcare