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SB 3330

AN ACT RELATING TO STATE AFFAIRS AND GOVERNMENT -- MEDICAID PROGRAM FUNDING AND REALLOCATION OF ENROLLMENT SAVINGS

2026 Regular Session Introduced by Frank Ciccone and 1 co-sponsor

Rhode Island will reinvest enrollment-driven Medicaid savings into higher provider reimbursement rates to strengthen the provider network and maintain access.

06/02/2026 Committee recommends passage
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WeVote Research Nonpartisan
Bill Summary · SB 3330

Overview

SB 3330 (Rhode Island, 2026) proposes to preserve and reinvest Medicaid enrollment-driven savings within the Medicaid program by increasing provider reimbursement rates. The policy aims to shield the healthcare delivery system from the financial impact of anticipated reductions in Medicaid enrollment and to ensure savings from enrollment declines are used to strengthen provider payments.

Main purpose and intent

  • Maintain access to healthcare for Rhode Islanders by supporting a stable provider network despite anticipated federal policy changes that may reduce Medicaid enrollment.
  • Ensure that any enrollment-related savings within Medicaid are retained within the health care system and reinvested in providers through targeted rate increases.
  • Improve provider financial stability, potentially reducing uncompensated care and supporting ongoing access to services.

Key provisions and changes

  1. Definitions

    • Introduces “enrollment-driven savings” as the reduction in Medicaid expenditures in the fiscal year ending June 30, 2028 attributable to decreases in enrollment (per estimates from the Rhode Island caseload estimating conference).

  2. Reallocation of savings

    • All enrollment-driven savings shall be retained within Medicaid and not used for deficit reduction or other purposes.
    • Savings must be reallocated exclusively to increase Medicaid provider reimbursement rates, including:
      • Hospital inpatient services
      • Hospital outpatient services
      • Physician services
      • Federally Qualified Health Center (FQHC) services
    • These savings are additive to existing reimbursement levels and cannot replace or offset current appropriations, rate structures, or payment methodologies as of June 30, 2026.

  3. Implementation

    • The Executive Office of Health and Human Services (EOHHS) must:
      • Adjust fee-for-service Medicaid reimbursement rates as needed.
      • Amend managed care contracts and/or implement directed payments to ensure rate increases are passed through to providers, with a minimum pass-through rate of 90% of each rate increase, within 180 days of each adjustment.
      • Submit any required state plan amendments, waivers, or federal approvals to CMS.

  4. Reporting and compliance

    • EOHHS must annually report to the General Assembly by October 31, including:
      • How enrollment-driven savings were calculated (methodology and actuarial assumptions).
      • Details of provider rate adjustments by type and care setting.
      • Total federal participation generated by rate investments under this act.
      • Status of any state plan amendments, waivers, or federal approvals.
      • Compliance by managed care organizations with the 90% pass-through requirement.

  5. Effective date

    • The act takes effect on July 1, 2026.

Who/what is affected

  • Medicaid program operations in Rhode Island, including:
    • Hospitals (inpatient and outpatient)
    • Physicians
    • Federally Qualified Health Centers
    • Managed care organizations (through contract amendments and directed payments)
  • The Rhode Island Executive Office of Health and Human Services, which would implement rate changes, contract adjustments, and reporting.
  • State policymakers, through annual reporting to the General Assembly.

Procedural/timeline aspects

  • Effective date: July 1, 2026.
  • Implementation window for rate adjustments and pass-through: within 180 days after each rate adjustment.
  • Annual reporting requirement: by October 31 each year, detailing methodology, rate changes, federal funding impact, and compliance.

Potential impact (contextual)

  • Aims to shield providers from the financial strain of enrollment declines by channeling savings into higher reimbursement levels, potentially improving payer mix balance and reducing uncompensated care.
  • Requires ongoing coordination with CMS for any waivers or approvals and robust annual reporting to ensure transparency and accountability.
  • Establishes a guaranteed minimum pass-through to providers, preserving a high level of direct benefit from any rate increases.

Compiled from official sources — confirm details with the bill’s official record.

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