Critical Access Hospitals (CAH) are reimbursed by
Medicare at 101% of allowable cost for both inpatient and
outpatient services. State Medicaid agencies however are
not required to reimburse CAHs on a cost-basis and have
flexibility in determining how CAHs are paid for
providing services to Medicaid enrollees. This brief
documents which states utilize a cost-based reimbursement
methodology for Medicaid.