Legislative analysts outline $6 billion Health and Welfare budget, highlight Medicaid drivers

Legislative Services analysts presented the Department of Health and Welfare’s budget review to the Senate Health and Welfare Committee, emphasizing that recent and projected spending increases are driven primarily by Medicaid changes and hospital assessment-related federal dollars.

Alex Williamson, budget and policy analyst with the Legislative Services Office, told the committee the department’s recent spike in appropriations — an increase of roughly $670 million from fiscal 2022 to 2023 — was driven largely by Medicaid adjustments, population forecast updates and changes to the hospital upper payment limit. “About two thirds of that came from changes to Medicaid,” Williamson said, noting the upper payment limit and hospital assessment changes increased federal…