'Big Beautiful Bill' Will Upend State Directed Payments in Managed Medicaid

Jul 11
Jul 11, 2025

The budget reconciliation bill that President Donald Trump signed into law on July 4 will have a major impact on state directed payments (SDPs) that insurers are sometimes required to make to providers serving managed Medicaid beneficiaries.

One health policy expert tells AIS Health, a division of MMIT, that the cuts may contribute to slower adoption of value-based care among managed Medicaid insurers, while a recent KFF analysis found the reduced reimbursement could potentially lead to decreased access to and lower quality of care.
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Tim Casey

Tim has been a reporter and editor for newspapers, websites and magazines for more than 20 years, including 10 years covering health care business topics. He has a deep knowledge of the managed care industry and pharmacy benefit management. He also has experience covering medical conferences and clinical and legislative health care issues. In 2014, the Society for Advancing Business Editing and Writing selected Tim as one of 15 journalists to participate in a national symposium on the Affordable Care Act. Tim has a B.A. in Psychology from the University of Notre Dame and an M.B.A. from Georgetown University.