Gov. Jeff Landry and Louisiana Department of Health officials announced on Oct. 7, 2025, a substantial increase in Medicaid provider reimbursement rates aimed at improving healthcare access for low-income residents. The announcement was made during a press conference at the State Capitol.

Rate increase details
According to Louisiana Health Secretary Bruce Greenstein, Medicaid provider reimbursement rates will increase to 85% of the applicable Medicare rate. The calculation was based on the March 2024 Region 99 Medicare rates. Prior to this increase, Louisiana Medicaid reimbursed for professional services at approximately 73% of Medicare reimbursement in the aggregate, based on a review of services provided between July 2022 and June 2023.

The increase in provider reimbursement rates applies to physicians, nurse practitioners, clinical nurse specialists, certified nurse midwives and physician assistants. The rate increases will be applied retroactively to medical visits made since June 30, 2025.

Specific service increases
According to the Louisiana Department of Health, Medicaid rates for adult primary care visits are going up 31% under the new system. The rate for anesthesiologists will increase 24% because those services were already closer to the Medicare rate. The exact amount of increase varies across the types of providers.

Program funding and rationale
According to the governor’s office, the rate increase is made possible by new efficiencies and stronger program integrity within Louisiana’s Medicaid system, which officials say have resulted in significant savings to the state. About 1.6 million Louisiana residents, representing a third of the state’s population, receive health insurance through the Medicaid program.

Surgeon General Ralph Abraham, a primary care physician who works part-time at a health clinic in rural Northeast Louisiana, stated he believes the higher Medicaid payments will help bring down the state’s high rates of chronic illnesses. He indicated people with Medicaid should be able to find doctors sooner and prevent certain diseases from taking root.

Healthcare access concerns
For years, doctors have complained the rates to treat Louisiana’s Medicaid enrollees are so meager that they don’t cover the costs of providing care in some cases. The low reimbursement contributed to a shortage of specialists, such as obstetricians who deliver babies, willing to treat Medicaid patients or practice in rural parts of the state, where Medicaid use rates are higher.

Dr. Wyche Coleman Jr., a primary care physician practicing in Coushatta, stated he believes the higher rates will make it easier for him to find medical specialists to see his patients. Greenstein said the move creates a space to allow physicians all over the state to be able to take more Medicaid patients.

The Louisiana Department of Health initiated the formal rulemaking process and submitted a state plan amendment to the Centers for Medicare and Medicaid Services. 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.