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Medicaid director outlines eligibility unwinding, IT modernization and staffing pay proposal

2141185 · January 16, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

Mississippi Medicaid told the committee it completed a large recertification effort after the public-health emergency, is digitizing records and seeks an across‑the‑board $4,000 raise for eligibility workers (cost estimated at about $2.7 million), while warning of federal funding risks.

Cindy (Medicaid director) told the Legislative Budget Committee that the department completed a large eligibility recertification following the federal public‑health emergency and is moving to digitize records and modernize internal processes to improve customer service and program integrity.

Cindy said the department handled a substantial recertification workload after the end of the continuous coverage requirement. She described process changes: improved production monitoring, digital document storage, scanning of back files and managerial staffing changes to speed application and renewal processing.

Why it matters: Medicaid is a large state budget item and a major payer for services in Mississippi. The director said the department is working to reduce administrative friction, protect federal funding, and target fraud and waste while also preparing for potential federal policy changes that could affect the federal match.

Key proposals and program notes

• Eligibility workload and digital records: The director said the department has moved new documents into electronic storage and is scanning back files, with the goal of fully digitizing files within about a year to reduce space and increase processing efficiency.

• Transforming Maternal Health Outcomes grant: Medicaid reported it was awarded a maternal‑health grant the director described as about $17 million over 10 years; the department named a clinical medical director who will oversee related work.

• Staffing/pay ask for eligibility workers: The director proposed an across‑the‑board $4,000 pay increase for eligibility workers (benefit specialists). She told the committee a $4,000 raise for the benefit specialists (who were reported at roughly $31,000 base pay versus a $38,000 market rate) would cost about $2.7 million. She said the department will pursue automation where possible to reduce long‑term headcount needs.

• Reserves and utilization: The director said the agency expects to hold reserves (she cited an estimate of roughly $222 million in reserves at the start of the fiscal year) and that the department expects to use those reserves in the next budget year; she said utilization and cost trends are being tracked and that a patchwork federal utilization report prompted a higher budget ask this year than previously estimated.

• Fraud, supplemental payments and provider oversight: The director said Mississippi is working to ensure federal dollars are spent on quality outcomes, to improve analytical tools to detect fraud and to evaluate reimbursement methodologies (cost reporting vs. more standardized rates) to encourage cost‑effective provider behavior.

Federal match risk and timing

The director told the committee that federal policy discussions are active and that various changes (block grants, lower FMAP, or limits on provider taxes) are being discussed at the federal level. She said the National Association of Medicaid Directors has warned states that federal decisions could reduce funding and that Mississippi officials are monitoring those developments.

Questions from legislators

Committee members asked about transportation, whether Medicaid is maximizing federal matches, and whether the department is using federal funds for supplemental payments. The director said vendors and providers have a role in implementation and that the department is pursuing options to bill certain services through Medicaid where appropriate (for example, some preventive and school‑based services) to maximize federal matching funds.

What the department asked the Legislature to do

The director asked for legislative support for a pay increase for eligibility staff (the $4,000 increase was presented as a priority costing about $2.7 million) and said the department removed a separate request for nine extra positions from its budget request and will try to manage with current staffing if possible. Medicaid staff also asked the committee to consider broader modernization efforts and to allow the department to pursue federal and interagency funding alignments to maximize federal match.