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Therapists press Legislature for higher Medicaid rates; state agency warns of fiscal risks

Senate Business, Labor, and Economic Affairs · March 21, 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

House Bill 585 would raise Medicaid reimbursement for physical therapists, occupational therapists and speech‑language pathologists, using conversion factors and RVU methodology. Providers testified about operating losses; the Department of Public Health & Human Services opposed the bill as drafted over inflationary methodology and fiscal exposure.

Representative Ed Buttry, the bill sponsor, told the Senate Business and Labor committee HB585 seeks to change Medicaid payment for physical therapists (PTs), occupational therapists (OTs) and speech‑language pathologists (SLPs) by applying a conversion factor multiplied by relative value units (RVUs). He said the conversion factor proposed for fiscal year 2026 is 39.56 and acknowledged stakeholders asked about an inflation adjustment; he said he would be willing to remove that inflationary CPI provision if the committee prefers.

Therapists, clinic…

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