SB 2735 Mississippi Senate · 2026 Regular Session

Medicaid; make various amendments to the provisions of the program.

SB 2735 updates Mississippi's Medicaid program with several key changes affecting beneficiaries and providers. It extends eligibility for foster care children until age 26, adds eligibility for men of reproductive age under family planning, and explicitly bans Medicaid coverage for gender transition procedures. The bill establishes new reimbursement rates (100% for pediatricians, 85% for ambulatory surgical centers), allows rural hospitals to opt out of certain payment systems, and creates new payment rules for nursing facilities. These changes directly impact Medicaid recipients, healthcare providers, hospitals, and behavioral health centers across Mississippi.
Bill status died 3 of 5 stages cleared
Introduction
Feb 2026
Committee Review
Feb 2026
Senate Passage
Feb 2026
House Passage
Governor
Introduced Feb 6, 2026 Last action Mar 3, 2026
Maddy AI version diff · 2 comparisons

What changed between versions

As Introduced Committee Substitute · 13 edits
MAJOR
This bill amends Mississippi's Medicaid code to update eligibility criteria, reimbursement rates, and program administration to align with current federal law and state policy priorities. Key changes include expanding eligibility for men of reproductive age under family planning services, extending foster care eligibility to age 26, adjusting reimbursement percentages for certain services, and implementing new payment models for hospitals and ambulance providers.
Scope change
The bill expands Medicaid eligibility for specific populations (men of reproductive age, foster care children) and modifies reimbursement methodologies for various healthcare services and providers.
ELIGIBILITY

Men of reproductive age are now explicitly eligible for family planning services under Medicaid, with eligibility determined by family income not exceeding 185-194% of the federal poverty level.

Children in foster care eligibility was extended from age 21 to age 26, aligning with federal law requirements.

The requirement for the Division to apply to CMS for waivers to provide services for certain individuals (ESRD patients on dialysis, cancer patients on chemotherapy, organ transplant recipients) was eliminated.

The provision requiring reimbursement for outpatient hospital services at Border City University-affiliated pediatric teaching hospitals was deleted, as it was already repealed by operation of law in 2024.

Workers with potentially severe disabilities (ages 16-65 with impairments expected to cause blindness or disability) may purchase Medicaid coverage on a demonstration project basis.

FISCAL

Ambulatory Surgical Care (ASC) reimbursement was changed from 90% to 85% of the Medicare ASC Payment System rate effective July 1 of each year.

Rural hospitals with 50 or fewer licensed beds can now elect not to be reimbursed using the APC methodology for outpatient services, instead receiving 101% of the Medicare rate for two years.

Home leave payment limits for nursing facilities were reduced from 42 days to 21 days per year, and for intermediate care facilities from 63 days to 31 days per year.

The quarterly hospital assessment may now exceed the prior quarter by more than $3,750,000 if the increase is to maximize federal funds available for hospital reimbursement.

The Division may implement a quality or value-based component to the nursing facility payment system.

REQUIREMENT

Effective July 1, 2027, the Division may reimburse ambulance transportation service providers that provide assessment, triage, or treatment for eligible Medicaid beneficiaries.

The notice period for proposed rate changes was reduced from 30 days to 15 days, with provisions for expedited notice.

The Division is authorized to contract with the State Department of Health to provide perinatal high-risk management/infant services for eligible beneficiaries who cannot receive such services under other programs.

Floor votes · Senate Feb 5, 2026

How they voted

493
Passed
Total votes 52
Feb 5, 2026
D Democratic18
18 Yea
100% Yea
R Republican34
31 Yea 3 Nay
91% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
8
Key actions
2
Committee
3
Feb 6, 2026
Committee
Referred To Medicaid
lower
Feb 6, 2026
Introduced
Transmitted To House
upper
Feb 5, 2026
Upper · Passed
Passed
upper
Feb 2, 2026
Upper · Passed
Title Suff Do Pass Comm Sub
upper
Jan 19, 2026
Committee
Referred To Medicaid
upper
1 primary · 0 co-sponsors

Sponsors

Role
Legislator
Party
State
District
P
Photo of Kevin Blackwell
Kevin Blackwell
RRepublican
MS
19