Legislative finance panel approves Medicaid supplementals, fiscal 2026 enhancements totaling hundreds of millions

The Joint Finance-Appropriations Committee on Thursday approved a package of one-time fiscal 2025 Medicaid supplementals and a second motion to add ongoing fiscal 2026 enhancements that together shift hundreds of millions in general, dedicated and federal funds.

Alex Williamson, budget and policy analyst with Legislative Services, told the committee the FY2025 package includes a one-time $1.35 million external quality review contract required by the Centers for Medicare & Medicaid Services, payments related to implementation of the Idaho Behavioral Health Plan, an updated Medicaid forecast and additional hospital assessment deposits to access federal matching funds. The committee voted to move the item forward as a bill with a new pass recommendation.

Why it matters: The measures restore and appropriate funds to meet federal mandates, draw down additional federal dollars for hospitals and recalibrate state estimates for growing Medicaid caseloads and higher per‑person costs. Several items are tied to federal rules or court mandates and to multiyear IT and managed‑care contracts, making the appropriations necessary to maintain program operations and to pursue federal matches.

Key items approved in the FY2025 supplemental motion included: a $1,350,000 one‑time appropriation for the managed care external quality review (federal requirement),…