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Rural transit provider warns of service cuts after Medicaid reimbursement halved
Summary
Mountain Valley Transit officials told county partners that a cut in Medicaid mileage reimbursement and chronic subcontractor reliability problems have slashed expected revenue and could force service reductions within months across Chaffee County and the San Luis Valley.
Mountain Valley Transit officials told Chaffee County partners that recent changes to Medicaid reimbursement and repeated subcontractor failures have severely strained the small rural operator’s budget and could force reductions in service.
At a stakeholder meeting, a presenter identified in the transcript as Speaker 1 said the Medicaid mileage reimbursement rate was reduced from $6.49 per mile to $3.00, which she described as "a 54% reduction," cutting anticipated monthly Medicaid reimbursements from about $20,000 to roughly $10,000. She said the loss is affecting the agency’s required matching funds and amounts to…
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