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6/5/2025
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Senate approves Tikoian bill to increase Medicaid reimbursement to hospitals
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STATE HOUSE — The Senate on Wednesday approved legislation introduced by Senate Majority Whip David P. Tikoian that would increase Medicaid reimbursement to hospitals.
The bill (2025-S 0848) would expand an existing payment program funded by the hospital provider tax, which would allow the state to leverage existing funds to maximize federal matching dollars.
“This legislation supports hospitals in Rhode Island at a time when our health care system is under tremendous pressure, without placing any additional cost on our taxpayers,” said Senator Tikoian (D-Dist. 22, Smithfield, Lincoln, North Providence). “It’s evident now more than ever that hospitals across our state are facing serious challenges — workforce shortages, overcrowded emergency departments and inadequate reimbursement rates that simply do not cover the cost of care. Fortunately, this legislation offers a solution to help address those challenges.”
The bill would expand Rhode Island’s managed Medicaid state-directed payment program by advancing the base year used to calculate the hospital provider tax. This technical adjustment is expected to generate approximately $30 million in additional provider tax revenue, which — when matched with federal funds — will yield nearly $100 million in new Medicaid payments to hospitals across the state.
“For every dollar that the state takes in from the hospital provider tax, the state can realize $2 in matching federal funds,” said Senator Tikoian. “This bill maximizes those matching funds, bringing significant resources to our health care system without burdening Rhode Island taxpayers.”
The measure now moves to the House of Representatives, which passed similar legislation (2025-H 6095) sponsored by Rep. David A. Bennett (D-Dist. 20, Warwick, Cranston).
For more information, contact:
Daniel Trafford, Publicist
State House Room 20
Providence, RI 02903
(401)222-1922
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