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H 7693Health Insurance

State Affairs and Government - Health Care for Children and Pregnant Women

This bill mandates raising Medicaid payment rates for pediatric services to 130% of Medicare rates to address doctor shortages.

Held for study
Population
Affected
35
Introduced Feb 11, 2026Committee House Finance

Plain-English Summary

This legislation addresses the critical shortage of pediatric healthcare providers in Rhode Island. It mandates the Executive Office of Health and Human Services to increase Medicaid payment rates for outpatient clinical services provided to patients under nineteen years old. Specifically, the bill requires these Medicaid rates to be raised to equal 130% of Medicare rates by October 1, 2026. The objective is to make reimbursement rates competitive with neighboring states to recruit and retain pediatricians, specialists, and child psychiatrists, ensuring children have adequate access to healthcare.

For younger readers

Right now, there aren't enough doctors in Rhode Island to take care of all the children. Many doctors are leaving or retiring because they aren't paid enough compared to doctors in nearby states. This new law tells the government to pay doctors more money when they treat kids. By paying them a fairer amount, the state hopes that more doctors will want to work here and stay here. This means that when you or other kids get sick or need a checkup, it will be easier to find a doctor to help.

Who & Where It Applies

Impacted groups
PediatriciansChildren under 19Medicaid recipientsParentsTaxpayers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Significantly expands access to healthcare for low-income children and families who rely on Medicaid, directly addressing health equity and social justice.
  • Strengthens the social safety net by ensuring that the state's most vulnerable population—children—receives adequate preventative and specialized care.
  • Invests in the public good by stabilizing the pediatric workforce, preventing a collapse in care availability that would disproportionately hurt disadvantaged communities.
  • Increases payments to private healthcare providers and potential corporate medical groups rather than investing directly in state-run public health clinics.
  • Allocating general revenue to match Medicare rates may divert funds from other essential social services or education programs if the budget is tight.
  • Tying state Medicaid rates to federal Medicare rates cedes some local control, potentially causing issues if federal administrations cut Medicare reimbursement levels in the future.
For Conservatives
  • Supports private practice doctors and small business owners by ensuring they are compensated at rates closer to fair market value, allowing them to keep their businesses open.
  • Addresses a supply-side labor shortage through financial incentives rather than heavy-handed regulation or government takeover of services.
  • May reduce long-term taxpayer costs by ensuring children receive early care, preventing more expensive emergency room visits and chronic conditions later in life.
  • Mandates a significant increase in government spending and state budget allocation without identifying a specific offset or funding source.
  • Interferes with the free market by artificially setting price floors for services based on federal government metrics rather than local market dynamics.
  • Expands the cost of the Medicaid entitlement program, which could lead to future tax increases for Rhode Island residents and businesses.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 10 additions

SECTION 1. Legislative findings. The general assembly finds and declares:

(1) Rhode Island pediatricians are facing a major workforce crisis which is causing decreased healthcare access for children. Without significant intervention, the situation is expected to worsen and negatively impact not only the health or our children, but the long-term health of the adults in our state.

(2) According to a 2024 survey of Rhode Island pediatricians, less than fifty percent (50%) of pediatric primary care offices were accepting new or transfer patients other than newborns or siblings of current patients. Families that move to Rhode Island to work, or those whose pediatric providers retire, cannot find a doctor to care for their child.

(3) The same survey showed that forty-two (42) of one hundred fifty-six (156), twenty-six and nine-tenths percent (26.9%) of respondents, stated that they plan to retire within the next six

(6) years. This correlates to a potential loss of seventy-one (71) providers when applied to the two hundred sixty-two (262) pediatricians who are currently practicing primary care in Rhode Island, and a projected net loss of forty (40) to forty-five (45) providers by 2030. Current providers do not have the capacity to increase panel size to accommodate more patients as most are working with full patient loads.

(4) Rhode Island also suffers from shortages in pediatric subspecialists and child psychiatrists, causing unnecessary delays in care for children. The American Academy of Pediatrics has predicted that despite increasing medical complexity of American children, the supply of specialists will continue to decline without significant investments in the workforce. In Rhode Island, current Medicaid payment rates for pediatric specialists is lower than that for general pediatricians, as they were not included in the last rate increase in the governor’s budget.

(5) On average, Medicaid payment rates in Rhode Island are approximately twenty-five percent (25%) lower than those in Massachusetts and Connecticut, which causes significant difficulty in recruiting new pediatric providers to our state.

(6) Medicaid rates have a significant impact on the availability of pediatric health care to children statewide, regardless of income. Nationally and in Rhode Island, pediatric health care providers are more dependent on Medicaid than adult health care providers to keep their practices open and operating because Medicaid covers a large portion of children’s health care. In Rhode Island in 2022, fifty-eight percent (58%) of children under age seven (7), and fifty-four percent (54%) of children ages zero to eighteen (18) were covered by Medicaid insurance. Only eight percent (8%) of Rhode Islanders over age nineteen (19) were covered by Medicaid. In 2019, children represented about twenty-five percent (25%) of the U.S. population, yet received less than ten percent (10%) of total health care spending.

(7) Spending on health care during childhood has been documented to improve health into adulthood, thereby reducing future costs. Investments in children’s health care can produce improved outcomes in subsequent generations.

SECTION 2. Chapter 42-12.3 of the General Laws entitled "Health Care for Children and Pregnant Women" is hereby amended by adding thereto the following section: 42-12.3-17. Access to pediatric health care. The executive office of health and human services shall pursue a Medicaid state plan amendment and allocate sufficient state general revenue to increase Medicaid payment rates to equal one hundred thirty percent (130%) of Medicare rates for all payment codes for outpatient clinical services rendered to patients under nineteen (19) years old on or before October 1, 2026 to ensure rates allow pediatric providers to provide adequate services for their current patient panels. Increased rates will allow practices to recruit and retain pediatric providers to include, but not be limited to, pediatricians, pediatric specialists, child psychiatrists, family medicine physicians, nurse practitioners, and physician’s assistants to improve the current workforce shortage, and offset the projected shortfall in replacing physicians who plan to retire.

SECTION 3. This act shall take effect upon passage.