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Senate hears renewed push for Medicaid rate parity for identical case management services
Summary
SB 6 11 would require the Department of Health and Human Services to establish rates that achieve parity for two identical Medicaid state-plan case management services. Supporters said federal rules require equal reimbursement for identical services; DHHS urged a cost-based methodology and noted CMS approvals and possible appropriations are part of implementation.
Senator Kevin Avard introduced SB 6 11 to direct the Department of Health and Human Services to annually set rates that achieve parity for two Medicaid state-plan case management services: mental health case management and Choices for Independence (CFI). Avard and provider witnesses argued federal Medicaid rules require identical services to be reimbursed equally.
DHHS officials (Henry Littman and Melissa Hardy) said they share the goal of fairness but raised compliance and implementation issues. They described previous legislative efforts, an earlier appropriation discussion in the budget process, and recommended either a targeted appropriation to equalize rates or a longer-term transition to a CMS-approved cost-reporting methodology that would set rates more transparently.
Provider organizations and case management agencies urged the committee to direct DHHS to use CMS-approved methodologies and to include behavioral-health case management in any cost reporting; several witnesses noted prior legislative study committees had reached similar conclusions but implementation stalled in the budget and conference process.
Senators pressed on the technical options. DHHS said some short-term parity could be achieved with appropriation, while a full cost-based solution would require time, data collection, and state-plan amendments to secure CMS approval. The hearing closed with agreement to continue working with DHHS on cost methodology and possible appropriation language.
