Providers warn Louisiana deadlines could delay Medicaid rate increase

Organizations that care for people with disabilities say conflicting state deadlines could delay a promised Medicaid funding increase for another year.The Louisiana Department of Health is developing new reimbursement rates for home- and community-based services, which help people with disabilities receive care outside institutions. The rates are intended to better reflect providers’ actual costs.
LDH officials have said they would seek full funding for the new rates in the fiscal year 2028 budget. But the department must submit its initial budget request by Nov. 1, while providers do not have to submit the cost reports used to calculate the rates until Nov. 30.
In a July 29 letter to Health Secretary Bruce Greenstein, three provider groups said the timeline could prevent the full increase from being included in the budget.
The Arc of Louisiana, the Community Provider Association of Louisiana and the Supported Living Network asked LDH to move the deadline, use existing data or include an estimated amount that could be adjusted later.
The groups said current Medicaid payments do not fully cover the cost of care and warned that another delay would worsen workforce shortages and financial pressure on providers.
They asked LDH to explain how it plans to include the rate increase in its budget request and confirm that it will seek full funding.

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