This paper describes the process of increasing reimbursement rates for physicians who provide services to Maryland Medicaid enrollees. It compares Maryland Medicaid reimbursement rates for physicians with Medicare fees in Maryland and Medicaid reimbursement rates of other states. It also provides an analysis of the impact of the increases in reimbursement rates on the participation of physicians in the Medicaid programme. Based on the analysis presented in this article, which targets the increase in reimbursement rates to evaluation and management procedures, the Maryland Government increased physician fees in the Medicaid programme beginning July 2002. Evaluation and management procedures are usually office visits provided by either a primary care physician or a specialist.