JFAC approves $415.2 million in FY2025 Medicaid supplementals and $674.2 million in FY2026 Medicaid adjustments

The Joint Finance-Appropriations Committee on Wednesday approved a package of FY2025 supplementals and FY2026 budget adjustments for the Department of Health and Welfare's Division of Medicaid that together fund managed-care compliance work, changes tied to the Idaho Behavioral Health Plan and an ongoing hospital assessment mechanism to draw federal matching funds. The FY2025 supplemental passed with a combined total request of $415,226,800 and the FY2026 adjustments were approved with a total request of $674,192,600; the motions carried with a majority (Senate: 7 ayes, 3 nays; House: 6 ayes, 3 nays, 1 absent), and both measures will proceed as bills with a new "pass" recommendation.

Alex Williamson, budget and policy analyst with Legislative Services, told the committee the FY2025 package was presented as a single omnibus supplemental to save time. "First up is the fiscal year '20 '20 '5 supplementals," Williamson said, and then walked members through the itemized requests.

The supplemental and follow-on FY2026 actions are designed to cover: a managed-care external quality review (EQR) contract required by the Centers for Medicare & Medicaid Services (CMS); implementation and configuration costs related to the Idaho Behavioral Health Plan; an updated Medicaid forecast reflecting higher-than-expected caseload and utilization; a capitation-rate increase for the Idaho Behavioral Health Plan; and a hospital assessment payment that enables the state to draw additional federal funds under a revised upper payment limit calculation.

Key dollar figures cited by Williamson and in the motions: $1,350,000 (one-time) for the managed-care external quality review; $695,500…