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DHHS outlines small, volatile recoveries program; Medicaid estate recovery is largest component
Summary
DHHS officials told the Ways and Means committee that recoveries (estate, provider cost settlements, fraud and third‑party liability) are modest, volatile and concentrated in the fee‑for‑service Medicaid population; estate recovery is the largest single component.
Health and Human Services officials told the Ways and Means committee that the department’s recoveries and other non‑appropriation revenues are modest in scale, fluctuate substantially year to year, and are often driven by external events such as probate outcomes or criminal prosecutions.
Nathan White, DHHS chief financial officer, said the agency recorded about $3.5 million in recoveries in state fiscal 2024 but currently projects roughly $2.16 million for the present year; the budget for FY2026–27 carries a planning figure of about $3.12 million as directed during budget preparation. White stressed that single large settlements or probate recoveries can materially change annual results and that many recovery streams are therefore unpredictable.
Janelle Lelejian, general counsel…
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