Committee tables bill to raise Medicaid reimbursement for federally qualified health centers
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Summary
House Bill 11 50, which would increase reimbursement rates for FQHCs that proponents say are currently paid only about 60% of service costs, was heard and subsequently tabled after budget office concerns about funding ongoing rate increases with one-time dollars.
House Bill 11 50, presented by Tim Wahlberg and supported by representatives of the Community Healthcare Association of the Dakotas and Horizon Health, sought to address a reported reimbursement gap that has forced rural federally qualified health centers to cut sites and staff.
Liz Schenkel of the Community Healthcare Association told the committee that FQHCs serve more than 126,000 patients in more than 31 communities and that current Medicaid reimbursement covers roughly 60% of the cost to deliver care. "This has led to health centers closing sites and reducing services across the state," she said.
Wade Erickson, CEO of Horizon Health, described recent site closures and said cash reserves are low; health centers, he said, operate payroll to payroll and still run on small or negative margins.
Kate Schnabel, representing the Bureau of Finance and Management, recommended opposing HB 11 50 because the bill would create ongoing reimbursement increases funded with one-time general and federal money. She urged that if the legislature prioritizes the increase, it should be included in the General Appropriations Act via the motion-sheet process to ensure sustainable funding.
After discussion the sponsor asked to table the bill; the committee voted to table HB 11 50 on a recorded roll call. The sponsor indicated intent to pursue the matter through budgeting rather than a special appropriation.
Next steps: HB 11 50 has been tabled; proponents urged inclusion of reimbursement changes in the FY27 budget process.