DIVA outlines FY2026 Medicaid budget needs, including reentry case managers and ACO bridge funding

DIVA officials presented the department's FY2026 budget request on Feb. 25, describing personnel additions, program annualizations and several adjustments to Medicaid spending authority.

The department told the committee the administration budget bottom line is $182.2 million and highlighted staffing increases tied to pay-act rollouts and fringe costs. "We recently completed the post pandemic Medicaid renewal restart period with a 75% enrollment retention rates," said Stephanie Barrett, financial director for DIVA. Barrett said the staffing and fringe increases make up the majority of the change in the administration budget and identified one new line item: funding to add eight Vermont care coordination case management positions tied to a justice reentry initiative.

Barrett said the eight case management positions to support the Vermont care coordination initiative unit are an expansion tied to a justice reentry program that will begin in January 2026. The budget shows $924,000 associated with those positions in the personal service line; other personal-service and benefit…