LDH budget centers on a large managed‑care adjustment, physician rate increases and work to replace legacy IT systems

Summary

Department of Health budget hearing focused on a $1.2 billion MCO adjustment, a two‑year plan to raise physician reimbursement toward Medicare rates, and an updated approach to the child‑welfare information system (CCWIS). Interim secretary Drew Maranto and House fiscal staff presented the numbers.

Baton Rouge — At the House Appropriations hearing on April 8, the Louisiana Department of Health explained several major Medicaid budget adjustments for FY26 that together reshape vendor payments and planned rate increases.

House Fiscal Division analyst Julie McGee briefed the committee on the department’s FY26 recommendation and highlighted a $1.2 billion net increase that the department attributes chiefly to a managed‑care organization (MCO) rate and utilization adjustment. McGee explained the three elements driving the adjustment: higher utilization, enrollment changes and reconciliation of directed payment models that await federal Centers for Medicare & Medicaid Services (CMS) approval.

Interim LDH Secretary Drew Maranto told the committee he will press for “accountability and transparency” as the department implements the changes. “A tax dollar is a tax dollar regardless of the source,” Maranto said, adding that the department will seek better program design with outcomes at the forefront.

Key budget items:

- MCO adjustment: McGee described a $1.2 billion net…

LDH budget centers on a large managed‑care adjustment, physician rate increases and work to replace legacy IT systems

Summary

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