Administration cites $300M Medicaid deficiency; proposes targeted coverage and rate changes
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.
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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."
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