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Health Resources Division budget presentation warns of FMAP-driven state cost increases; proposal moves $3M to HMK fund
Summary
Legislative fiscal staff and the Health Resources Division told the subcommittee the division’s request reflects rising state match pressure as the federal Medicaid match (FMAP) falls, and includes a $3 million fund switch into the Healthy Montana Kids (HMK/I-155) state special account.
The Health Resources Division (HRD) outlined to the subcommittee on March 1, 2025, a fiscal 2026–27 budget request that shifts more costs to the state as the federal Medicaid matching rate (FMAP) declines. HRD’s all‑funds request includes a $47.2 million increase in general fund, nearly $5 million in additional state special revenue and an overall federal funds reduction of about $140.7 million, with several present‑law adjustments tied to FMAP changes and caseload projections.
Why it matters: the federal FMAP affects how much of Medicaid costs the federal government will cover. A lower FMAP raises the state’s general‑fund obligation for Medicaid, affecting Montana’s budget planning and potential tradeoffs across programs.
Legislative fiscal staff framed the numbers in detail. A staff presenter summarized the division’s funding mix: roughly 76.2 percent federal funds, 15.6 percent general fund and 8.2 percent state special revenue…
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