JFAC approves $415.2 million in FY2025 Medicaid supplementals and $674.2 million in FY2026 Medicaid adjustments

The Joint Finance-Appropriations Committee (JFAC) voted to approve one-time fiscal year 2025 supplementals totaling $415,226,800 and an FY2026 package of Medicaid adjustments and ongoing appropriations totaling $674,192,600 during a committee session discussing the Department of Health and Welfare's Division of Medicaid.

The FY2025 action included funding the federally required managed care external quality review (EQR), system-configuration costs for the Idaho Behavioral Health Plan (IBHP), an updated Medicaid forecast, a capitation rate increase for IBHP, and a hospital assessment fund deposit that allows the state to draw federal upper payment limit dollars. Senator Wintrow moved the FY2025 supplemental and Representative Handy seconded it; the motion passed by a committee majority (Senate: 7 ayes, 3 nays; House: 6 ayes, 3 nays, 1 absent/excused). The committee reported the motion will go forward as a bill with a “new pass” recommendation.

Alex Williamson, budget and policy analyst with Legislative Services, told the panel the EQR is a federal requirement for states with managed care organizations and that Idaho is requesting $1,350,000 to meet that obligation. She described the Medicaid forecast supplemental as reflecting updated expenditures and asked for $113,849,300 to cover entitlement program costs for the remainder of FY2025. Williamson also said additional funds—$108,821,400—were requested to cover a…