Louisiana Medicaid rates to increase from $38 to $45 this summer

May 27, 2025 | 2025 Legislature LA, Louisiana


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Louisiana Medicaid rates to increase from $38 to $45 this summer
In a pivotal meeting on May 27, 2025, the Louisiana Legislature's Appropriations Committee discussed a significant increase in the personal needs allowance for Medicaid recipients, raising it from $38 to $45 per month. This change, set to take effect in July or August, aims to provide much-needed financial relief to vulnerable populations, particularly seniors in nursing homes.

The discussion was sparked by Representative Wiley, who emphasized the inadequacy of the current allowance, stating, "What could you do with $38? You can barely buy Pampers." His remarks resonated with fellow legislators, who expressed strong support for the bill, highlighting the importance of dignity for those who have contributed to the system throughout their lives.

Medicaid Director Kim Sullivan confirmed that the increase was already in the works prior to the bill's introduction, indicating a proactive approach to addressing the financial struggles faced by many seniors. "We’ve got more money," she noted, reinforcing the positive impact of the upcoming changes.

The committee's discussions also touched on the broader context of Louisiana's standing in comparison to neighboring states, with Mississippi currently offering a higher allowance of $44 and Texas at $75. Legislators acknowledged that while this increase would still leave Louisiana near the bottom tier nationally, it represents a crucial step forward.

As the committee prepares to finalize the bill, there is a commitment to work on language that could further enhance the allowance, potentially raising it to $50 in the future. This move is seen as a vital measure to ensure that those who rely on Medicaid can meet their basic needs with dignity and respect.

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