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Corrections cites population and medical‑contract pressures; warns of larger increases if contract rebids
Summary
IDOC told lawmakers population changes drove requested increases in county and out‑of‑state placement per diems and that a pending renegotiation of the medical contract could raise costs 10% under a renewal or 30–40% if the contract must be rebid.
The Department of Correction told the Joint Finance Preparations Committee on Feb. 4 that population changes and rising medical utilization are driving supplemental and ongoing requests in the county/out‑of‑state placement and medical services budgets.
Population‑driven per diems: Analyst Noah Peterson explained the county and out‑of‑state placement program is population‑driven. For FY25 the agency requested supplemental funds to cover differences between original population projections and updated projections. The FY26 ongoing request would increase the base by about $4,027,900 to reflect the new expected population.
Medical contract negotiations: Peterson said the department is negotiating with its current medical contractor and modeled its FY26 projection on the assumption of a successful negotiation, estimating a 10% increase. If the negotiations fail and the contract goes to competitive bid, the agency estimated a 30%–40% increase in medical contract costs.
Per‑diem rates: Director Josh Tewalt explained the legislature sets county per‑diem rates in statute, including bifurcated rates (one rate for 1–7 days, a higher rate for 8+ days). The agency cited example per‑diems used in FY24 and provided context for shifts in the county average when the mix of short‑stay vs. long‑stay county placements changed.
Governor recommendation: The governor recommended the requested supplemental increases and the FY26 ongoing adjustments under the assumption of successful contract negotiations; the agency said more detailed medical utilization and contract documents are available in the agency workbook and to be supplied to the committee.
Taper: The committee asked for documentation showing how the medical‑contract assumptions were computed and how per‑diem changes map to population mix changes; the agency committed to follow up with detailed projections and contract negotiation status.
