Reservation rural hospitals receive higher medical assistance payments
Starting January 1, 2027, reservation-based rural hospitals receive payments at 150 percent of the fee-for-service rate for eligible patients’ hospital care.
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What it does
Rural hospitals on federally recognized reservations qualify for payments at 150 percent of the fee-for-service rate for eligible patients’ inpatient and outpatient care, regardless of managed care enrollment. Psychiatric unit beds are excluded.
Argument forThe higher payment rate could give reservation-based rural hospitals more support for inpatient and outpatient care for eligible patients.
Argument againstHospitals may still receive less support for inpatient care in psychiatric unit beds, which the higher payment rate excludes.
More detail
The law sets payments for covered hospital care at 150 percent of the fee-for-service rate. This applies to any rural hospital on a federally recognized Indian reservation, regardless of the patient's managed care enrollment. The patient must qualify for a medical assistance program. Psychiatric unit beds are excluded. The payment rule begins January 1, 2027, and expires January 1, 2029.
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