Posting date: June 23, 2004

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Health Affairs, 10.1377/hlthaff.w4.374
Copyright © 2004 by Project HOPE

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Trends: Changes In Medicaid Physician Fees, 1998-2003: Implications For Physician Participation

¹ Stephen Zuckerman is a principal research associate at the Urban Institute in Washington, D.C.
² Joshua McFeeters is a research associate at the Urban Institute.
³ Peter Cunningham is a senior health researcher at the Center for Studying Health System Change in Washington, D.C.
⁴ Len Nichols is the center’s vice president.

^*Corresponding author.

Abstract

After slow growth during much of the 1990s, Medicaid physician fees increased, on average, 27.4 percent between 1998 and 2003. Primary care fees grew the most. States with the lowest relative fees in 1998 increased their fees the most, but almost no states changed their position relative to other states or Medicare. Physicians in states with the lowest Medicaid fees were less willing to accept most or all new Medicaid patients in both 1998 and 2003. However, large fee increases were associated with primary care physicians’ greater willingness to accept new Medicaid patients.

Key Words: Access To Care, Medicaid, Physicians, State/Local Issues

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