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Idaho Medicaid budget rises as expansion costs, provider rates and FMAP shifts drive spending
Summary
Analysts told the Joint Finance-Appropriations Committee that Idaho's Medicaid spending is climbing because of coverage expansion, provider rate increases, changes to hospital payment calculations and a shift in federal matching (FMAP) that moves roughly $45 million onto the state budget.
Alex Williamson, budget and policy analyst with Legislative Services, told the Joint Finance-Appropriations Committee on Feb. 26 that Idaho's Medicaid program has grown substantially and comprises the bulk of the division's spending.
"The division of Medicaid is responsible for administering plans to finance and deliver health services for people at risk due to low income and other factors," Williamson said, adding the division manages four benefit plans and an administrative arm.
The committee was shown that $4.56 billion was appropriated for fiscal 2024 and about $4.27 billion was expended by the division. Williamson said trust/benefit payments made up more than 98% of fiscal-year 2024 expenditures and that personnel and operating costs for Medicaid administration totaled about $67 million for that year.
Why it matters: the committee heard several drivers that together raised costs beyond early…
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