PROVIDENCE – Gov. Daniel J. McKee on Tuesday announced strategic plans to strengthen the state’s primary care system, which include addressing the impact of Anchor Medical’s closure, and prevent future interruptions in medical care.
“In the changing landscape of health care, we need to take proactive steps to ensure our residents have continued access to primary care,” McKee said. “My Health Care System Planning Cabinet will continue to identify strategies to strengthen the health care workforce, create stronger fiscal oversight and support practices in expanding their patient base.”
In his announcement at the Statehouse, McKee listed the six parts of his strategy: accelerating a primary care Medicaid rate review; requiring commercial health insurers to increase funding for primary care reimbursements; reducing red tape by easing prior authorization requirements; providing grants to help primary care practices serve additional patients and hire new providers; strengthening fiscal oversight of the state’s health care system; and expanding the primary care student loan forgiveness program.
“Primary care is the backbone of the health care system in Rhode Island,” said R.I. Director of Health Dr. Jerry Larkin. “These measures being announced today will help strengthen our primary care workforce, which is key to improving health outcomes throughout the state. Primary care provides a foundation for preventive care, early disease detection, management of chronic conditions, and so much more.”
Attorney General Peter F. Neronha panned McKee’s plan, calling it a slapdash response to political and public pressure because of the dissolution of Anchor Medical.
“We will never fix this crisis through talking points and half-baked proposals like a woefully underfunded loan forgiveness program, which would forgive loans for less than two physicians. And we don’t need more posturing and subgroups. We need significant, state-funded investments, including increasing Medicaid reimbursement rates for primary care now to reach parity with our neighboring states,” Neronha said. “We need to require health insurance companies to significantly reduce or eliminate prior authorization requirements, as my office has pressured Blue Cross & Blue Shield [of Rhode Island] to do and are working with the legislature to mandate. We need improved data collection systems and analysis to consistently understand the problems our health care system faces, and solutions born out of that analysis. So far, we have none of this.”
Last month, through the R.I. Office of the Health Insurance Commissioner, the McKee administration implemented new regulations r
equiring commercial health insurers to incrementally increase funding for primary care reimbursements over a four-year period, with the goal of doubling per-member primary care spending by 2029.
“From investments in provider rates and primary care training sites to the launch of our Certified Community Behavioral Health Clinics, the governor and his administration continue to take deliberate, strategic action to strengthen the foundation of Rhode Island's health care system,” said Richard Charest, secretary of the R.I. Executive Office of Health and Human Services. “These challenges didn't emerge overnight and they won't be solved overnight – but by making targeted investments and improving system accountability, we can better serve Rhode Islanders and build a more resilient health care system for the future.”
McKee also included in his fiscal year 2026 budget proposal new investments in the health professional loan repayment program, specifically for primary care providers and pediatricians. Under this program, participating health professionals commit to working for at least two years in Rhode Island. If passed by the General Assembly, this would mark the first time since fiscal year 2008 that general revenue would support this initiative, according to the governor’s office.
McKee said Tuesday he will file a budget amendment to accelerate a proposed review of primary care provider rates, recommending that the Office of the Health Insurance Commissioner complete the primary care rate review one year earlier.
The governor’s office said this is an important step in determining how Rhode Island may need to adjust its rates to create a more competitive primary care job market in the state. McKee first proposed the primary care provider rate review in his fiscal year 2025 budget, but it was not included in the General Assembly’s final version.
McKee’s strategy also requires a 20% reduction in prior authorization requirements – in which providers are required to get approval from insurance companies or other entities before giving a treatment, test or medication to a patient. McKee’s office said this change will reduce time-consuming administrative burdens on primary care providers, allowing them to deliver care to patients more effectively.
“These measures are designed to enhance financial support for primary care practices, improve access to necessary treatments, and allow providers to focus more on patient care, ultimately contributing to a more efficient and effective health care system,” the governor’s office said in a statement.
McKee’s plan also calls for $5 million in grants for primary care practices to support the recruitment and retention of primary care physicians and increase access and capacity to serve Rhode Islanders in primary care settings. Funds can be used for compensation of newly recruited providers, recruitment efforts and for administrative needs that may be incurred because of expanding patient panels, with a maximum grant of $375,000 per practice. Applications for grants are open through May 16.
To strengthen oversight of the state’s health care system, McKee recently filed a budget amendment that would require hospitals, nursing facilities, federally qualified health centers, certified community behavioral health clinics, large physician practices, and other providers to submit quarterly financial reports to the state.
The goal of this new requirement is to improve transparency and support early identification of financial risks that may threaten the continuity of care, McKee’s office said. This new reporting requirement is designed to be an early-warning mechanism – not a punitive measure. By collecting financials on a quarterly basis, the state can engage providers earlier to preserve stability, promote solvency and avoid disruptions in care.
“The new incentive grants represent Medicaid's continued commitment to supporting primary care access, especially for patients who have historically faced the greatest barriers to care,” said Kristin Pono Sousa, director of the Rhode Island Medicaid Program. “By helping providers grow their practices and serve more Medicaid members, we're not just expanding access – we're investing in a stronger system of care for Rhode Islanders.”
Blue Cross and United and the other commercial health insurance have to step up. I think the governor needs to be a little bit more forceful in this direction. Doing a four year increase and decreasing the rate review from two years down to one year and then we don’t know what that means isn’t gonna solve any problems.