CHCS January 21, 2026
Primary care is critical for supporting population health in the U.S., yet it has long been underfunded within Medicaid. This is a dynamic time for Medicaid, with states facing increased financial pressure under the 2025 budget reconciliation act (P.L. 119-21), while also receiving new funding through the Rural Health Transformation Program. In this evolving policy environment, how states prioritize and pay for primary care will be important to meeting the needs of Medicaid members and supporting an efficient health care system.
One key strategy states are using to strengthen primary care is adopting new payment approaches. The predominant fee-for-service (FFS) payment system does not adequately support comprehensive, patient-centered primary care, prompting many Medicaid agencies and managed care organizations (MCOs) to...
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