How inappropriate reimbursement is affecting Vermont:

For years, Medicaid’s rates haven’t covered the cost of the care (not the prices, but the actual cost of providing care) provided to Vermont’s Medicaid beneficiaries. Recently, Medicaid rates to most providers have been cut dramatically or have not included even inflationary increases.

The consequences of these chronic underpayments are being seen today — higher premium prices, not enough doctors and dentists, and access problems for nursing home care. When Medicaid underpays physicians and dentists, the ultimate consequence is that they leave the state or close their practice to Medicaid beneficiaries because they can’t afford to build a practice based on Medicaid patients at current payment rates. Underpayments also cause nursing homes to close or stop taking Medicaid patients, like Genesis nursing home did when they closed in Morrisville three months ago.