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FQHC advocates tell appropriations committee a Medicare Economic Index rate adjustment is critical as centers face closures

2145833 · January 23, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Bi-State Primary Care Association urged the committee to approve the budget adjustment that funds a Federally Qualified Health Center (FQHC) rate update tied to the Medicare Economic Index, saying the MEI adjustment (about $326,000 in state funds) would help fragile FQHCs providing care to one in three Vermonters.

A representative of Vermont's FQHC network told the House Appropriations Committee on Jan. 23 that a budget adjustment to update Federally Qualified Health Center (FQHC) rates is critical to avoid further clinic closures.

Mary Kate Mollman, director for Vermont public policy at Bi-State Primary Care Association, said FQHCs provide “comprehensive care to 1 in 3 Vermonters” regardless of ability to pay and deliver services including primary care, mental health, substance-use disorder treatment, dental and vision care, care coordination and translation services. Mollman described multiple financial stresses: a member closed a Bellows Falls site, two dental sites consolidated, and “multiple FQHCs have less than 20 days cash on hand,” forcing service and staff reductions.

Mollman said the Budget Adjustment Act rate adjustment aligns with the Medicare Economic Index (MEI) and is required by federal statute to update FQHC rates for inflation annually. She told the committee the adjustment would represent roughly $326,000 in state general funds to support FQHC rate increases administered by DCF (transcript referenced DIVA; the rate-setting is a DCF/Division function in testimony). Mollman said the MEI adjustment is a targeted measure to stabilize safety-net providers while broader options are pursued.

Committee members did not vote at the hearing; staff and JFO materials will be used to inform committee markup and decisions on the BAA.