OHCA tells Appropriations committee it needs $126 million state share as Medicaid spending rises

The Oklahoma Health Care Authority laid out its FY2026 funding request and spending drivers during a budget performance review before the Appropriations and Budget Committee. Agency chief executive officer Ellen Bittner said the agency is asking the state for a $126 million share of an overall budget increase and described why Oklahoma’s Medicaid costs are rising.

The request is tied to continued growth after Medicaid expansion and the end of the federal public health emergency, Bittner told legislators. She said OHCA’s FY2025 budget totaled $11.2 billion, which included a $100 million deposit to a rate preservation fund and a $30 million self-funded long‑term care rate increase.

Why it matters: Medicaid is one of the largest elements of the state budget and draws a federal match that can change from year to year. A shift in the federal medical assistance percentage (FMAP) would change how much of Oklahoma’s Medicaid cost the state must cover; committee members pressed agency leaders on how the state would respond if federal matching rates fell.

Key spending drivers and agency actions

Bittner credited Sooner Select, Oklahoma’s new capitated Medicaid delivery model, for concentrating many members into managed care. She said the…