Legislative finance panel approves $415.2 million in FY2025 Medicaid supplementals, advances $674.2 million FY2026 package

The Joint Finance-Appropriations Committee on a bipartisan vote approved one-time fiscal year 2025 Medicaid supplementals totaling $415,226,800 and advanced a separate fiscal year 2026 Medicaid package that would add $674,192,600 in new appropriations and ongoing funding.

The FY2025 supplemental package, offered as a single consolidated motion by Senator Wintrow and seconded by Representative Handy, included $1,350,000 for the managed-care external quality review required by the Centers for Medicare & Medicaid Services (CMS); payments tied to configuration and implementation costs for the Idaho Behavioral Health Plan; a $113,849,300 adjustment to the Medicaid forecast for accrued entitlement costs; increased capitation payments for the Idaho Behavioral health plan; and $77,243,700 in dedicated hospital assessment funds to enable federal drawdown under the upper payment limit methodology. The committee recorded 13 ayes and 6 nays with one member absent and excused; the motion will go forward as a bill with a new-pass recommendation.

Alex Williamson, budget and policy analyst with Legislative Services, reviewed the package for the committee and said the managed-care external…