Minimum Payment Act of 2011 - Rhode Island attempts to guarantee payment

Last month, legislators in Rhode Island introduced bills in the House and Senate that set a minimum reimbursement rate for commercial payers. 

The bills are in response to a study that shows most Rhode Island physicians are paid substantially less by commercial insurers than their counterparts in Connecticut and Massachusetts.  This is particularly problematic for medical specialists.

Payment inequities have made it difficult to recruit and retain physicians in the "Ocean State."  As older physicians retire, there are few physicians to take their place. Medical speciality providers are already in short supply in the state and according to the bill's authors, without a network of qualified physicians, citizens could soon face long waits for appointments or be required to travel out of state to see a specialist. 

If the bill becomes law, physicians who participate in medical assistance and devote at least 5% of their practice to free care could receive insurance payments at 125% of the Medicare rates.   Increased payments are viewed as a way to attract practitioners to the State and to increase access to high quality medical care.

The Rhode Island Medical Society opposes the bill, saying it doesn't like the idea of setting rates by law.  A similar measure failed last year.