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Committee withholds Medicaid birth-cost recovery repeal after mixed testimony and cost concerns
Summary
Lawmakers closed public comment on 26LSO138, heard Department of Family Services and Medicaid data showing low net recovery and high administrative cost, and the bill was withheld for lack of motion during a budget session.
The Labor, Health & Social Services Committee took public comment on 26LSO138, a bill to repeal Medicaid birth-cost recovery, then decided not to advance the proposal during the budget session.
Christy Gordy, senior administrator with the Department of Family Services (DFS), told the committee the program has not produced the expected fiscal returns since its 2018 enactment. DFS and the Department of Health have reduced about $1,000,000 to judgment and collected $742,208.74 over seven years; about half of collections must be returned to the federal Centers for Medicare & Medicaid Services, leaving roughly $371,104.37 for the…
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