Medicaid Services Rate Increase Effective July 1

The General Appropriations Act provides a rate increase for most Medicaid services. Rate increases for Medicaid providers are effective July 1, 2020 for services provided in FY 2021.

Services receiving a 2.0 percent inflationary increase including the following:

• Instate DRG Inpatient Hospital Services
• Instate DRG Exempt Inpatient Hospital Units
• Instate APC Outpatient Hospital Services
• Physician Services
• Dental Services including Orthodontic Services and Dentures
• Optometric Services
• Chiropractic Services
• Nutritionists and Dietician Services
• Durable Medical Equipment (Not including items subject to Section 1903(i)(27)) of the Social Security Act)
• Clinic Services
• Physical Therapy
• Occupational Therapy
• Speech, Hearing, or Language Disorder Services
• Prosthetic Devices
• Eyeglasses
• Diabetes Self-Management Training
• Nurse Midwife Services
• Community Transportation
• Secure Medical Transportation
• Air and Ground Ambulance Transportation
• Home Health Agencies
• Independent Mental Health Practitioners Services
• Nutrition Items
• Community Mental Health Centers
• Substance Use Disorder Agencies
• Personal Care Services
• Nursing Facilities
• Community Support Providers
• Community Service Providers
• Child Private Duty Nursing
• Anesthesiology excluding outpatient and ASC
• Health Home per member per month

South Dakota Medicaid has revised the fee schedules. The fee scheduled are available online:

If you have any questions, please contact the Division of Medical Services at 1-800-452-7691.