April 27, 2018

Mississippi Medicaid Ordered to Make Payments

The Mississippi Supreme Court has ordered the state's Medicaid program to pay $2 million to 12 hospitals, saying the agency improperly skimped on reimbursement for radiology and laboratory services.

According to the Associated Press and local press reports, the mid-April decision upholds a suit the hospitals filed saying the state-federal health insurance program had illegally changed its payment formula.

The court found Medicaid broke its rules by not paying the actual costs of those services, but instead substituted another formula that cut payments by understating hospital costs.

A lower court had previously ruled for the state Division of Medicaid.