Senate approves bill to set annual Medicaid provider rate increases tied to state growth

SALT LAKE CITY — The Utah Senate approved third-substitute Senate Bill 193 on Feb. 18, mandating annual Medicaid reimbursement increases for certain providers and linking those increases to the state general fund growth factor.

The bill, sponsored on the floor by Senator Doug Owens, requires the governor’s budget submissions to include a baseline Medicaid rate increase for specified provider categories and ties future increases to measured state growth. "This ensures consistent Medicaid reimbursement growth, helping health care providers keep pace with inflation and maintain service quality," Owens said during his floor presentation.

The measure directs annual base budget language that triggers rate increases under a graduated formula: if general fund growth is below specified thresholds funding stays level; if growth is in a middle range increases are proportional to growth; and if growth exceeds 102% funding increases at least 2% per year. Owens described a one-time appropriation of $15,000,000 to “get us on trajectory” for the listed provider categories.

Why it matters: Supporters…