July 29, 2025 Louisiana Medicaid Increased Physician Reimbursement Rates Beginning July 1, 2025

Baton Rouge, Louisiana, Jul 29, 2025 - The Louisiana Department of Health (LDH) announced an increase in Medicaid reimbursement rates for physicians through funding authorized by Act 306 of the 2024 Regular Legislative Session and appropriated in House Bill 1 of the 2025 Session.

Effective July 1, 2025, Medicaid physician reimbursement rates will increase to 85% of the March 2024 Region 99 Medicare rates for applicable services. Reimbursements at or above this threshold will remain the same.

To implement the new rates, LDH has initiated the formal rulemaking process and submitted a state plan amendment to the Centers for Medicare and Medicaid Services (CMS). An emergency rule was published in the July 2025 edition of the Louisiana Register with the effective date of July 1, 2025, allowing the rate increase to take effect while the final rule is being finalized.

What Providers Need to Know:

• No action is required from providers. All eligible Medicaid claims with service dates on or after July 1, 2025, will be automatically recycled by LDH and the managed care organizations (MCO) to reflect the updated reimbursement amounts.
• A revised Medicaid fee schedule will be posted on LDH’s website by September 30, 2025.
• Once the fee schedule is published, MCOs will have 30 calendar days to implement the new rates.
• LDH will issue an informational bulletin with additional details before the online posting of the revised fee schedule.

For updates and more information, providers are encouraged to monitor LDH communications.