On average, Medicaid payment is lower than Medicare for primary care services and varies depending on the state. The health care infrastructure cannot continue to absorb this disparity in payment and function efficiently. Lack of parity between these rates is acutely felt in underserved or rural areas where patient volume and payer mix is much lower than in densely populated areas.
The AAFP supports Medicaid payment for primary care services at least equal to Medicare’s payment rate for those services when provided by a primary care physician and continues to advocate for increased Medicaid payment.
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