McKee says he will propose $16.5 million increase in Medicaid primary care rates
A new report from Rhode Island's health insurance commissioner found the state's Medicaid primary care rates now top those in the rest of New England. The governor says his January budget will go further.
PROVIDENCE — Gov. Dan McKee said Wednesday that he will ask lawmakers in January to spend about $16.5 million in state and federal money to raise Medicaid reimbursement rates for primary care, following a report from the Office of the Health Insurance Commissioner.
The report, submitted Sept. 1 and required by the General Assembly, found that Rhode Island's Medicaid primary care rates now exceed the fee-for-service rates paid in Massachusetts, Connecticut, New Hampshire and Maine, and sit above the national Medicaid median. The state raised its rates to Medicare levels in October 2025.
McKee's office said the proposal would fund the first of the report's recommendations, setting higher rates that would serve as both the state's Medicaid fee-for-service rates and a floor for Medicaid managed care organizations. Under the commissioner's rate model, payments would average about 150% of Medicare for primary care led by physicians and about 110% of Medicare for care led by advanced practice providers, compared with the current 100%. The administration assumes a start date of Oct. 1, 2027.
The change would require federal approval from the Centers for Medicare and Medicaid Services, the governor's office said.
"Rhode Island has made significant progress strengthening primary care, but there is more work to do," McKee said in a statement.
A second recommendation in the report, which the administration said it would pursue over several years, calls for payments outside the traditional visit-based model to help practices build care teams and support services such as care management and integrated behavioral health.
This brief was drafted by AI from a public agency press release and published by The New England Signal. Why we use AI for stories like this one.