Bill > SB523

This bill revises the reimbursement provisions for Medicaid services by expanding cost-of-living adjustment requirements to providers who are not physicians. Specifically, the bill mandates that contracts with non-physician Medicaid providers must include an annual fee adjustment based on the Consumer Price Index (CPI) for medical care, as calculated by the U.S. Bureau of Labor Statistics. The adjustment must be made and applied every 12 months for the duration of the contract, with the percentage increase matching the CPI for similar services in the previous year. Previously, such cost-of-living adjustments were primarily focused on physician services. The bill amends Montana Code Annotated Section 53-6-125 to accomplish these changes and will become effective on July 1, 2025. This legislation aims to ensure that Medicaid providers receive fair compensation that keeps pace with increasing costs of providing healthcare services.