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HB971 • 2026

MEDICAID: Provides relative to Medicaid reimbursement for rural health clinics (REF +$2,655,159 GF EX See Note)

MEDICAID: Provides relative to Medicaid reimbursement for rural health clinics (REF +$2,655,159 GF EX See Note)

Budget Healthcare
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Joe Stagni
Last action
2026-05-29
Official status
Adopted in House concurrence
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the exact amount of funds needed or when the bill will be signed into law.

Medicaid Reimbursement for Rural Health Clinics

This bill requires the Louisiana Department of Health to equalize Medicaid reimbursement rates between independent and provider-based rural health clinics, contingent on legislative appropriation of funds.

What This Bill Does

  • Requires the secretary of the Louisiana Department of Health to ensure that independent rural health clinics receive the same Medicaid reimbursement rate as provider-based ones.
  • Allows the department to create rules or amend state plans to implement this requirement.
  • Sets a deadline for the department to take necessary actions within 90 days after the bill becomes effective, contingent on legislative appropriation of funds.

Who It Names or Affects

  • Independent rural health clinics in Louisiana
  • Provider-based rural health clinics in Louisiana
  • The Louisiana Department of Health

Terms To Know

Medicaid reimbursement rate
The amount of money Medicaid pays healthcare providers for services given to patients.
Independent rural health clinics
Rural health clinics that are not part of a larger hospital or medical facility.

Limits and Unknowns

  • The bill does not specify the exact amount of funds needed for implementation.
  • It is unclear when the governor will sign or veto the bill, affecting its effective date.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Filed

Plain English: The amendment adds a need review process for certain rural health clinics, increases Medicaid reimbursement rates for independent clinics, requires monthly reports to the legislature, and mandates approval by federal authorities.

  • Requires types one and two rural health clinics to undergo a facility need review before getting a license.
  • Increases Medicaid reimbursement rates for independent rural health clinics with federal approval.
  • Requres the Louisiana Department of Health to submit monthly reports on encounters at type one rural health clinics to the legislature.
  • The exact details and timing of the increased encounter rate are not fully specified in the provided text.
Adopted

Plain English: The amendment changes when certain Medicaid reimbursement rules for rural health clinics will take effect and adds conditions for these rules to become active.

  • Changes the date by which a rule must be implemented from October 1, 2026, to ninety days after the new law is passed.
  • Adds that Sections 1 and 2 of the bill will only take effect when there is enough money set aside in the state budget for them.
  • The amendment does not specify exactly how much funding is needed or what specific actions must be taken to implement these sections.
  • It's unclear from this text alone if other parts of the bill are affected beyond Sections 1 and 2.
Draft

Plain English: The amendment changes when certain Medicaid reimbursement rules for rural health clinics will take effect and adds conditions for these rules to become active.

  • Changes the date by which a rule must be implemented from October 1, 2026, to ninety days after the new law is passed.
  • Adds that Sections 1 and 2 of the bill will only take effect when there is enough money set aside in the state budget for them.
  • The amendment text does not provide details on what specific changes are being made to Medicaid reimbursement rules, only when they should be implemented.
Filed

Plain English: The amendment to HB971 agrees with the Senate's changes regarding Medicaid reimbursement for rural health clinics and includes an additional funding amount of $2,655,159.

  • Concurs with Senate amendments related to Medicaid reimbursement for rural health clinics.
  • The official amendment text does not provide specific details about the changes made by the Senate or what exactly is being concurred in. More context would be needed to explain the full impact of these changes.
Adopted

Plain English: The amendment changes Medicaid reimbursement rules for rural health clinics, adding a facility need review process and increasing encounter rates for independent rural health clinics in fiscal years 2026-2027 and 2027-2028.

  • Adds a new section on 'facility need review' to determine the necessity of new or additional facilities, providers, programs, services, or beds for type one and two rural health clinics.
  • Increases the encounter rate for independent rural health clinics by $41.50 in fiscal years 2026-2027 and 2027-2028, with an annual Medicare Economic Index inflation adjustment applied to this rate.
  • Requires monthly reports from the Louisiana Department of Health detailing encounters and expenditures for each type one clinic.
  • The exact impact on Medicaid reimbursement rates beyond fiscal years 2026-2027 and 2027-2028 is not specified in the amendment text.
  • Details about how the facility need review process will be implemented are not provided.

Bill History

  1. 2026-05-29 H

    Read by title, roll called, yeas 95, nays 0, Senate amendments concurred in.

  2. 2026-05-27 H

    Scheduled for concurrence on 05/29/2026.

  3. 2026-05-26 H

    Received from the Senate with amendments.

  4. 2026-05-26 S

    Rules suspended. Senate floor amendments read and adopted. Read by title, passed by a vote of 37 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

  5. 2026-05-21 S

    Reported without Legislative Bureau amendments. Read by title and passed to third reading and final passage.

  6. 2026-05-20 S

    Read by title and referred to the Legislative Bureau.

  7. 2026-05-20 S

    Rules suspended. Recalled from Committee.

  8. 2026-05-14 S

    Read by title. Recommitted to the Committee on Finance.

  9. 2026-05-13 S

    Reported favorably.

  10. 2026-05-06 S

    Read second time by title and referred to the Committee on Health and Welfare.

  11. 2026-05-05 S

    Received in the Senate. Read first time by title and placed on the Calendar for a second reading.

  12. 2026-05-05 H

    Read third time by title, roll called on final passage, yeas 91, nays 6. Finally passed, title adopted, ordered to the Senate.

  13. 2026-04-29 H

    Scheduled for floor debate on 05/05/2026.

  14. 2026-04-28 H

    Read by title, amended, ordered reengrossed, passed to 3rd reading.

  15. 2026-04-27 H

    Reported with amendments (14-0).

  16. 2026-04-07 H

    Read by title, ordered engrossed, recommitted to the Committee on Appropriations.

  17. 2026-04-01 H

    Reported favorably (9-0).

  18. 2026-03-17 H

    Read by title, under the rules, referred to the Committee on Health and Welfare.

  19. 2026-03-16 H

    Read by title. Lies over under the rules.

Official Summary Text

MEDICAID: Provides relative to Medicaid reimbursement for rural health clinics (REF +$2,655,159 GF EX See Note)

Current Bill Text

Read the full stored bill text 
HLS 26RS-1425 REENGROSSED
2026 Regular Session
HOUSE BILL NO. 971
BY REPRESENTATIVE STAGNI
MEDICAID: Provides relative to Medicaid reimbursement for rural health clinics
1 AN ACT
2 To enact R.S. 40:2197.1, relative to rural health clinics; to provide for Medicaid
3 reimbursement rates of rural health clinics; to provide for the promulgation and
4 adoption of rules; to provide for a state plan amendment; to provide for an
5 implementation date; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 40:2197.1 is hereby enacted to read as follows:
8 §2197.1. Equality in Medicaid reimbursement rates for rural health clinics
9 A. The secretary of the Louisiana Department of Health shall take all
10 necessary actions to equalize the Medicaid reimbursement rate between independent
11 rural health clinics, also known as type one rural health clinics, and provider-based
12 rural health clinics, also known as type two and three rural health clinics. The
13 Louisiana Department of Health shall ensure that independent rural health clinics are
14 reimbursed by Medicaid at the same rate as provider-based rural health clinics.
15 B. The Louisiana Department of Health shall prepare a state plan amendment
16 or promulgate and adopt rules, as necessary, to implement the provisions of this
17 Section.
18 Section 2. Not later than ninety days after the effective date of this Act, the
19 Louisiana Department of Health shall take all necessary actions to implement the provisions
20 of Section 1 of this Act.
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-1425 REENGROSSED
HB NO. 971
1 Section 3.(A) The provisions of Sections 1 and 2 of this Act shall become effective
2 when an Act of the Louisiana Legislature containing a specific appropriation of monies for
3 the implementation of the provisions of this Act becomes effective.
4 (B) The provisions of this Section shall become effective upon signature by the
5 governor or, if not signed by the governor, upon expiration of the time for bills to become
6 law without signature by the governor, as provided by Article III, Section 18 of the
7 Constitution of Louisiana. If vetoed by the governor and subsequently approved by the
8 legislature, the provisions of this Section shall become effective on the day following such
9 approval.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 971 Reengrossed 2026 Regular Session Stagni
Abstract: Requires the La. Dept. of Health (LDH) to take all necessary actions to ensure
that independent rural health clinics are reimbursed by Medicaid at the same rate as
provider-based rural health clinics.
Present law defines a rural health clinic as a facility that provides primary healthcare
services to outpatients located in an area that is not an urbanized area as defined by the U.S.
Census Bureau.
Proposed law requires the secretary of LDH to take all necessary actions to equalize
Medicaid reimbursement rates between independent rural health clinics and provider-based
rural health clinics.
Proposed law requires LDH to take any necessary action to implement the provisions of
proposed law not later than 90 days after the effective date of proposed law including filing
a Medicaid state plan amendment or promulgating and adopting rules.
Effective upon appropriation of funds by the legislature.
(Adds R.S. 40:2197.1)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the
engrossed bill:
1. Change deadline by which LDH must take action to implement proposed law
from Oct. 1, 2026, to 90 days after proposed law becomes effective.
2. Make effectiveness of proposed law subject to appropriation of monies by the
legislature for the implementation of proposed law.
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.