This bill mandates that the Department of Health and Human Services (DHHS) increase Medicaid reimbursement rates for prosthetic and orthotic devices to at least 90 percent of the Medicare rates as of January 1, 2024. The commissioner of DHHS is required to report the actions taken to achieve this goal and address any remaining disparities in reimbursement rates to the oversight committee on health and human services by November 1, 2024. Additionally, the oversight committee is tasked with conducting an annual review of Medicaid reimbursement rates for these devices to ensure they are adequate and to explore ways to equalize the reimbursement rates between Medicare and Medicaid.

The bill also includes an appropriation of $620,000 to the DHHS for the biennium ending June 30, 2025, specifically for the purpose of aligning Medicaid reimbursement rates for prosthetic and orthotic devices with the Medicare rates. The DHHS is permitted to accept and expend federal funds without fiscal committee approval for this purpose. The governor is authorized to draw a warrant for the appropriated sum from any money in the treasury not otherwise allocated. The act is set to take effect on July 1, 2024, as approved on August 2, 2024.