HHS: Health law to raise Medicaid service fees

"[T]his proposed rule helps states and physicians provide every American, no matter where they live, access to the care they need to stay healthy," she said in a statement.

"This new rule can help improve health and reduce costs by preventing illnesses before they happen."

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Under the rule, states would receive more than $11 billion in new federal funds to use on Medicaid primary care delivery from 2013-2014, a release stated.

The American Academy of Pediatrics (AAP) called the development an "historic victory for children's access to quality healthcare." 

"This rule, once made final, will help enable pediatricians to provide the highest quality care for even more children enrolled in Medicaid," said AAP president Robert W. Block, M.D.

Acting administrator for the Centers for Medicare and Medicaid Services Marilyn Tavenner noted that the payment increase will help prepare primary care networks for "increased enrollment as the healthcare law is implemented."