Medicaid reimbursement and access to physicians: does lower reimbursement mean less access to care?

Abstract

AIn 2002, Medicaid reimbursement rates were lowered. Stakeholders expressed concern that physicians would be less likely to accept Medicaid patients at the lower reimbursement rate and, consequently, Medicaid patients would have to drive farther for care. Results presented here tested those two propositions using claims data from the Mississippi Division of Medicaid. We found physicians just as likely to participate in the Medicaid program after the reimbursement rate decrease, but with higher patient loads. And, although Medicaid patients must drive farther for their care than the general population, their drive times were highest in 2002 but declined to 2001 levels by 2003. Any negative impacts from the reimbursement rate decrease on access to care for Medicaid beneficiaries appear to have been temporary. Long-term effects can be assessed with more recent claims data.