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MedicaidReimbursementLow impact

Notice of intent – OHA will amend the Medicaid State Plan to use an in-state wage index to calculate rates for all Oregon hospitals.

Oregon Health Plan·OR·Public notice
Effective date
Oct 1, 2025
We identified it
Jun 20, 2026
Days to comply

Summary

Oregon Health Authority will switch from using out-of-state California wage indexes to in-state Oregon wage indexes for calculating Medicaid hospital reimbursement rates for three Southern Oregon hospitals. The change affects both inpatient DRG and outpatient APC payments, with grandfathered rates to prevent immediate payment reductions.

Action Required

Action needed
No immediate action required for billing teams outside Oregon. Oregon hospital billing departments should monitor for system updates from OHA regarding the wage index calculation changes effective October 1, 2025 for inpatient services and January 1, 2026 for outpatient services.