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Medicaid director defends next‑generation reforms; proposes hospital fee increase, 340B limits and other changes
Summary
Ohio Department of Medicaid Director Maureen Corcoran told the Senate Medicaid Committee that the 2026–27 budget strengthens program integrity, continues the single PBM and proposes a hospital franchise‑fee increase and 340B limits tied to state‑directed payment quality metrics.
Maureen Corcoran, director of the Ohio Department of Medicaid (ODM), presented the department’s 2026–27 budget overview and defended several next‑generation procurement decisions, including a single pharmacy benefit manager (PBM), stronger data use for eligibility and program integrity, and a hospital financing package that combines an increased franchise fee with state‑directed payments and limits on 340B participation.
Corcoran said ODM’s executive budget requests roughly $42.3 billion in all funds for fiscal year 2026 and emphasized that a mix of drivers — per‑member cost increases, hospital rate decisions, prescription‑drug trends and demographic shifts — explain projected Medicaid growth even with caseload nearly flat. She told senators the department included cost‑containment initiatives and “trigger” language to protect the state if federal matching rules change.
Single PBM and pharmacy: Corcoran defended…
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