Senate Finance reviews $21.4B LDH budget; Medicaid managed‑care growth and maternal‑health initiatives highlighted

The Senate Finance Committee on March 25 received a full briefing on the Louisiana Department of Health's FY2026 recommended budget of roughly $21.4 billion, driven primarily by Medicaid expenditures and federal funding. Department leaders highlighted managed‑care cost growth, nursing‑home rebasing, maternal‑health work and ongoing compliance needs tied to the Cooper‑Jackson settlement.

Heather McKnight of Senate Fiscal Services opened the LDH briefing with a structural overview: LDH spans 21 agencies, including Medicaid administration, public health, behavioral health and the human services authorities/districts — local governance entities that provide community behavioral health services. She said Medicaid represents the single largest expenditure area (about 89% of total LDH spending when isolating Medicaid programs) and that federal funds are the largest source of revenue for the department (about 71% of means of finance); State General Fund comprises about 15%.

Drew Maranto, interim Secretary of the Louisiana Department of Health, described the administration’s priorities in a comparatively “flat” FY2026 recommendation that stresses mandatory increases and targeted investments. "We need to raise our expectations and expect excellence," Maranto told senators, saying the SGF increase for LDH is modest (roughly 2.43%). He noted three material state‑fund drivers in the proposed budget: a nursing‑home rebasing adjustment (about $32.5 million), Medicare Part D clawback growth ($17.6 million) and Medicare Part A/B premium increases for dual eligibles (about $16.3 million).

Ralph…