(Indianapolis, Ind.) - Indiana Governor Mike Pence is undoing a series of Medicaid rate cuts the state made while weathering the recession.
The new increase amounts to two percent more for hospitals, nursing facilities, home health and immediate care providers. The boost will take effect in January 2014.
“A healthy Indiana is a strong Indiana,” said Pence. “Thanks to the state’s solid fiscal condition, we are able to increase the reimbursement rates, and we encourage providers to make investments that will improve the quality of care for Medicaid recipients and all Hoosiers.”
Doug Leonard, president of the Indiana Hospital Association, which opposed the 2010 cuts, praised Pence’s decision.
“This decision is very important for our hospitals—it provides a more solid financial footing at this critical time given continued federal Medicare cuts. This is even more significant considering hospitals in other states are facing even further Medicaid cuts while Indiana is able to reverse them,” Leonard said.
Indiana currently has 1.1 million Medicaid recipients, according to the governor’s office.