States eye increased Medicaid reimbursement rates to retain behavioral health providers

At least 28 states increased Medicaid reimbursement rates for behavioral health services in 2022, or plan to in 2023, according to a report from Kaiser Family Foundation. 

The report, published Jan. 10, used data from a survey of 44 state Medicaid programs. Of the surveyed states, 19 states reported increasing rates in fiscal year 2022, and 23 reported plans to increase rates in fiscal year 2023. 

Lower fee-for-service rates from Medicaid relative to other payers can limit the availability of mental health providers for Medicaid patients, according to the report. Most states reported they also have at least one strategy in place to reduce administrative burden for providers and expand the available workforce. 

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