Arkansas Raises Medicaid Dental Rates After 18 Years

After 18 years of no increases in Medicaid dental fees, Arkansas has taken meaningful legislative action to increase Medicaid dental reimbursement rates — a move that providers and advocates have long awaited.

Fee increase now law

Signed into law on April 22, 2025, Act 1025 (formerly Senate Bill 347) marks a historic shift in the state’s approach to dental access for low-income patients. The law mandates that beginning September 1, 2025, the Arkansas Medicaid Program will raise reimbursement rates for several critical dental services:

• Oral and maxillofacial surgery (including anesthesia)

• Pediatric dental care (including anesthesia)

• Services provided to adults with special needs

Based on the National Dental Advisory Service Comprehensive Fee Report, these procedures will be reimbursed at 60% of the 50th percentile of national fees, adjusted for Arkansas.

In addition, the law increases the annual dental care cap for adults with special needs from $500 to $1,000 — a modest but significant change for a population with complex oral health needs and limited access to care.

Strong legislative support

Senator Clint Penzo and Representative Justin Mayberry sponsored the bill, receiving bipartisan support. The legislation also directs the Arkansas Department of Human Services to apply for any necessary federal waivers or state plan amendments to implement the changes.

The move has been welcomed by Arkansas dentists, many of whom have struggled to provide quality care under stagnant and unsustainable Medicaid rates. For too long, reimbursement levels failed to keep up with inflation or the cost of delivering care, driving many providers away from the Medicaid program and creating access deserts, especially for vulnerable populations.

With this increase, Arkansas joins a growing list of states recognizing the need to modernize their Medicaid dental payment systems to protect access, quality, and provider participation.

These include Florida, Colorado, Nebraska, and Louisiana.

Texas Medicaid dentists need assistance

As we’ve reported many times, Medicaid dentists in Texas are hurting. Medicaid dental fees have not been increased in over a decade.

As the legislature is still sitting and the budget has not been passed yet, TDMR sincerely hopes there is a miracle going to happen.