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S 2542Medical Services

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

This bill significantly raises Medicaid payment rates for pediatric doctors to 130% of Medicare rates to address provider shortages.

Held for study
Population
Affected
28
Introduced Feb 13, 2026Committee Senate 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 reimbursement rates for outpatient clinical services provided to patients under the age of nineteen. Specifically, the bill requires these Medicaid rates to be raised to equal 130% of Medicare rates by October 1, 2026. The measure aims to stabilize the pediatric workforce, prevent doctors from retiring or leaving the state due to low pay, and ensure children have adequate access to primary and specialty medical care.

For younger readers

Right now, Rhode Island does not have enough doctors to take care of children. Many doctors are retiring or moving away because they are not paid enough to keep their offices open. This law tells the government that it must pay these doctors more money when they help kids who use state insurance. By paying the doctors more, the state hopes more of them will stay in Rhode Island. This will help make sure that when you are sick or need a check-up, there is a doctor available to help you.

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 healthcare access for low-income children on Medicaid, helping to ensure that a family's financial status does not prevent their children from seeing a doctor or specialist.
  • Strengthens the social safety net by investing in the pediatric workforce, preventing a collapse in care availability for the state's most vulnerable population.
  • Promotes health equity by addressing the funding disparities that often lead to worse health outcomes for children in marginalized communities compared to those with private insurance.
  • Directs public funds primarily toward increasing payments for private practitioners and medical businesses rather than establishing direct public healthcare infrastructure or community health centers.
  • Allocates state general revenue to match federal rates, which could theoretically divert funds from other essential social services, housing, or education programs if the state budget is tight.
  • Focuses on reimbursement rates without explicitly mandating that providers accept a specific percentage of Medicaid patients, potentially failing to guarantee access for the poorest residents if providers still cap their Medicaid panels.
For Conservatives
  • Enhances the state's economic competitiveness by aligning reimbursement rates with neighboring states like Massachusetts and Connecticut, helping to retain skilled professionals and prevent "brain drain."
  • Supports small business owners, specifically private medical practices, by ensuring reimbursement rates cover the actual cost of doing business and preventing practice closures.
  • Aims to reduce long-term taxpayer burdens by ensuring children receive preventative care now, potentially lowering the massive costs associated with treating chronic conditions in adulthood.
  • Mandates a significant increase in government spending by arbitrarily pegging Medicaid rates to 130% of Medicare rates, which will likely require tax increases or budget deficits to sustain.
  • Interferes with free market principles by having the government dictate price floors for services rather than allowing the market to determine rates based on supply and demand.
  • Expands the scope and cost of the state's entitlement programs, creating a permanent fiscal obligation that creates a larger government footprint.

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.