A bill for an act relating to annual automatic increases in Medicaid provider reimbursement rates.

HF 815 requires Iowa's Medicaid program to automatically increase reimbursement rates for healthcare providers by 2.5% each July 1, regardless of other inflation adjustments. This applies to all providers enrolled in Medicaid as of July 1 of the prior year, directly affecting hospitals, clinics, and other medical service providers who bill Medicaid. The bill overrides existing laws about inflation indexing, mandating this specific percentage increase annually without additional legislative action. It ensures providers receive predictable, annual payment adjustments tied solely to this fixed rate.