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Committee backs bill to raise conversion factor for therapists amid DPHHS opposition
Summary
House Bill 585 would increase the Medicaid conversion factor used to set payments for physical therapists, speech‑language pathologists and occupational therapists (proposed conversion factor $39.56). Providers testified they are losing money on Medicaid patients; DPHHS opposed the bill over statutory rate‑setting language and potential unintended rate increases.
Representative Ed Buttrie opened on House Bill 585, saying the bill updates the conversion factor used to calculate Medicaid payments for physical therapists, speech‑language pathologists (SLPs) and occupational therapists (OTs). He said the change is intended to keep small provider practices open and maintain access to care in rural communities.
The fiscal note presented by the sponsor shows DPHHS general fund costs of $2,970,000 in FY 2026 and $3,230,000 in FY 2027, with those state dollars matched by federal funds depending on beneficiary…
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