Joint Appropriations Committee adopts targeted rate increases, cuts vacant positions in Department of Health budget

Representative Sherwood, presenting the Department of Health budget to the Joint Appropriations Committee, said the agency’s spending is largely pass-through payments to providers and described the JAC’s actions on the department’s requests.

The committee approved a set of targeted measures intended to stabilize provider networks and maintain services for vulnerable populations, denied two larger reimbursement increases, and reduced several vacant behavioral-health positions.

Why it matters: The Department of Health budget covers Medicaid payments, state-operated health facilities and regulatory functions. The committee’s choices shift how much state general fund support the agency receives this biennium and which staffing requests are funded, while leaving some high-cost policy questions—particularly maternity-care access and behavioral-health rebasing—for later review.

Representative Sherwood, the presenting legislator, said the agency’s “82.5% of this agency's budget is pass through funds to private and nonprofit providers in our communities to reimburse for necessary medical and long term care support services” and described how JAC handled the agency’s requests and vetoed items. The committee adopted notes 3, 5, 6, 8, 9 and 10 in the status report and denied notes 1 and 2. Sherwood told members that note 3 approved rate increases for home-health providers after concern about losing providers for high-needs children and that note 5 converted 12 part-time WIC positions to full-time equivalents “so that the Department of Health can recruit and retain professional staff.”

On amendments, Sherwood said JAC added $3,860,000 in general funds to be matched by $3,860,000 in federal funds “for home and community based provider rate increases to maintain services for persons with developmental disabilities” after ARPA funding ran out; she described that as a gap measure through the next budget cycle.

Committee members pressed staff and the presenter on several points. Representative Yin asked why maternity-care provider increases were not prioritized given testimony about a statewide maternity-care desert. Chairman Bair replied that the committee “believe[s] that this desert is not a result of lower Medicaid rates … but rather an issue with insurance” and malpractice-cost differences that may be driving providers out of state; he said the committee plans further interim work on the issue. Representative Larson and others pressed about behavioral-health rebasing and vacant clinical positions; Sherwood and Chairman Bair said rebasing was not considered an emergency for this session and would be revisited in the regular budget.

The committee also reduced 14 vacant positions in behavioral health and aging areas, producing roughly $1,300,000 in general-fund savings, and approved $100,000 in special revenue for food service at the Wyoming Life Resource Center. Sherwood told the committee that some of the rate increases are funded largely by federal dollars and special funds rather than general funds.

A motion to restore a portion of preschool external-cost adjustment funding failed 6–6 in committee, Representative Sherwood said; the presenter noted that a prior motion to fully restore that funding had not passed.

What’s next: Committee members said they will revisit maternity care, behavioral-health rebasing, and preschool funding during the interim and in the next budget cycle.

Ending: With those decisions, the committee closed Section 48 and moved on to the next agency.