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Senate Finance adopts supplemental appropriations including $625.1M for Medicaid physician payments

3624057 · June 2, 2025
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Summary

House Bill 460, the supplemental appropriations bill, was reported as amended by the committee. Key inclusions are $625.1 million for a physician directed payment methodology in Medicaid, $29.3 million in additional Department of Corrections expenses and funds for IT and judgment payments.

House Bill 460, the supplemental appropriations bill for the current fiscal year, was amended and reported favorably by the Senate Finance Committee. The committee’s amendment package aligns expenditures with the May REC forecast and addresses undercollections and unforeseen expenses in the current year.

Committee staff outlined the major amendments: $625.1 million to finance the Medicaid physician directed payment methodology; $35.2 million for medical vendor payments to balance Medicaid projections through the fiscal year; $29.3 million for additional Department of Corrections expenses, including $5.6 million for the Cypress Offender Management System; $3.5 million for GOSEP for Lewin Tower feasibility studies; and $1.4 million for payment of various judgments against the state.

Senator Boudreau questioned whether the $625 million reflected the physician directed payment preprint from CMS; committee staff confirmed that the CMS preprint is reflected and the funds are included in the amendment. The committee voted to adopt the amendment set and to allow staff to make technical corrections. A motion to report HB 460 as amended was made and carried; the transcript shows the committee reported the bill favorably with no roll‑call recorded.

Committee members read witness cards indicating support from multiple named individuals, but the committee noted it was not taking public testimony at the hearing.

The committee’s amendment list will be attached to the engrossed bill and staff were authorized to make technical corrections before the bill proceeds to the full Senate.