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Administration cites $300M Medicaid deficiency; proposes targeted coverage and rate changes
Summary
OPM told lawmakers a roughly $300 million Medicaid shortfall is driving much of the first-year budget constraint and described several proposed savings: removing some weight-loss drug coverage, rolling back ambulance rates, freezing an eligibility program, and targeted rate increases in later years.
Jeff, secretary of the Office of Policy and Management, told the committee that Medicaid growth and related current-services costs consumed nearly all available cap growth in fiscal 2026 and that the administration is projecting "about $300,000,000 over the enacted budget just for the Medicaid program alone."
To reduce projected spending, the administration proposed several changes to Medicaid and related programs. Those changes include removing coverage for certain weight-loss drugs when prescribed solely for weight loss while continuing coverage when prescribed for diabetes or to reduce…
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