State governments frequently respond to budget shortfalls by reducing Medicaid provider payment rates (reimbursements) as a cost-containment measure.
October 05, 2025
high
policy
General policy response used by states to address fiscal deficits.
Reductions in Medicaid provider payment rates generally lead to fewer providers participating in Medicaid networks, reduced access to care for Medicaid enrollees, poorer health outcomes, and increased downstream costs.
October 05, 2025
high
impact
Typical consequences of lowering reimbursement rates for Medicaid providers.