MT SB523

Requires Medicaid contracts with non-physician providers to include mandatory annual cost-of-living adjustment provisions for covered service fees

Non-physician provider fees must be adjusted at minimum by the consumer price index for similar services from the previous year, as calculated by the U.S. Bureau of Labor Statistics

Cost-of-living adjustments must be applied every 12 months for the duration of the contract

Retains existing physician reimbursement formula (conversion factor × relative value unit × policy adjusters) with annual increases tied to the medical care consumer price index

Effective date: July 1, 2025