Update on Mediciad Reimbursement Rate Increases for mental and behavioral health

During today's Iowa Medicaid town hall for providers, to IME Director Liz Matney stated that the Medicaid rate increases will be effective 7-1-23. They hope to have those rates ready for public announcement mid-June.  New rates might not be loaded into the system by 7-1-23, but they will be retroactive. 

The $7 million appropriated by the legislature for Medicaid reimbursement rate increases will be specifically for mental health therapists.  Their goal is to get Iowa Medicaid rates to at least 85% of the benchmark they were using. 

The additional $3 M that we didn’t expect will also be for mental health, but IME will have some discretion as to where to put that money.

An additional $3 million was appropriated for substance use disorder treatment specficially.

Keep in mind that this is only the state's portion.  The federal government contribution is around 63%.

The next Medicaid providers town hall will be held on Thurs. June 29, 2023.  You can register for that meeting here:

Find recordings of previous town hall meetings here:

Another agenda item for the town hall meeting was the onboarding of the newest MCO, Molina.  Molina will be holding several orientation sessions for providers.  The training scheduled for 5-30 will contain both general content as well as specific information on behavioral health.  You can sign up for those trainings here: