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Deborah Lipson

Deborah Lipson

Debra Lipson, MHSA, is a health policy analyst and consultant and Senior Fellow at Mathematica Policy Research, specializing in Medicaid financing and delivery system reform.

Sep 9, 2026

5:00
Which are pretty low to begin with
5:02
... which, exactly, typically lower than what it costs to serve Medicaid patients.
5:06
So the state designs an SDP that requires all the plans to pay a standard fee increase to that class of hospitals that bring total reimbursement above Medicaid fee-for-service, maybe up to the Medicare rate, or maybe even close to what private insurers pay those hospitals, what is known as average commercial rate.
5:29
But in exchange for the additional reimbursement, these hospitals have to give something back, and in this case, they have to serve, let's say, a minimum number of Medicaid patients, or maybe even increase the number of patients they serve.
5:43
And that helps to ensure availability of care equal to the general population, a principle that's really been enshrined in Medicaid law for over 40 years.
5:53
Um, the state could also require the hospitals to demonstrate certain quality improvements, like lower emergency room or hospital readmission rates, or maybe fewer healthcare-associated infections.
6:05
The increased provider fees are then incorporated into managed care capitation rates or paid separately on top of the capitation rate.
7:16
Do you have a sense of sort of to what extent that they have grown?

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