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DLS flags hundreds of millions in DDA and Medicaid cost containment
Summary
Analysts said the Developmental Disabilities Administration budget would shrink in FY26 as multiple cost‑containment actions and funding shifts take effect; Medicaid also faces higher costs and contingent savings tied to a hospital assessment.
Department of Legislative Services analysts told the Health and Government Operations Committee that cost‑containment actions proposed in the FY25–FY26 package include multiple changes to the Developmental Disabilities Administration (DDA) and Medicaid that together amount to several hundred million dollars.
Naomi Camaro, budget analyst, DLS, said the Department of Health—s FY26 allowance totals about $21.5 billion and that the majority of that funding pays provider reimbursements across Medicaid, behavioral health and DDA programs. "The total budget across the department is $21,500,000,000 and a majority of that funding is allocated to provider reimbursements in VHA,…
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