Alaska seeks federal approval for Medicaid rate update effective July 1

The Alaska Department of Health has filed notice that it intends to seek federal approval for a Medicaid rate update with a July 1, 2026, effective date, setting reimbursement levels for providers across the state for the coming fiscal year. The filing follows a public hearing the department held on proposed Medicaid payment rates on June 24, placing the notice in an ongoing rate-setting process that also included a 2025 fee-schedule update that added payment for online digital and telephone services.

The amendment reflects updated Medicare rates and a revised conversion factor of 46.513, which the department said results in an estimated increase in costs for state fiscal year 2027. Its purpose is to update the effective dates of rates on the frontispiece of Attachment 4.19-B of the state plan, along with updates to rate descriptions. The proposed amendments will not affect how Alaska Medicaid provides or reimburses Early and Periodic Screening, Diagnostic, and Treatment services. The department is seeking approval from the Centers for Medicare & Medicaid Services for the state plan amendment, with a July 1, 2026, effective date.

Hospitals, community health centers, and tribal health organizations have said that updated fee schedules still do not cover the cost of care, particularly for rural and high-acuity services, and that reimbursement has not kept pace with inflation and workforce pressures. Tribal health organizations have also said rate-setting must account for the Indian Health Service encounter rate and the role of tribal facilities. The department did not address those concerns in its notice.

Alaskans may submit written comments until 5 p.m. on Thursday, July 30. Comments go to Christal Hays by email at [email protected], with the subject line reading "2026 Fee Schedule Updates."