JFAC approves Medicaid supplementals and FY2026 enhancements, including hospital assessment and MMIS funding

The Joint Finance-Appropriations Committee approved a package of supplemental and ongoing appropriations for the Division of Medicaid within the Department of Health and Welfare, including $113.8 million to cover an updated Medicaid forecast, $108.8 million for an Idaho Behavioral Health Plan capitation rate increase, and $77.24 million in dedicated hospital assessment deposits needed to draw additional federal funds.

Why it matters: The committee’s action funds shortfalls and planned program changes for Medicaid that affect hospitals, managed-care organizations, behavioral-health providers and people served by Medicaid. Several items respond to federal requirements (external quality review, CAHPS surveys) or court and legislative mandates (a DD resource-allocation tool tied to litigation and trailer language implementing House Bill 345). The committee also approved reporting and contract-timing language that sets deadlines for future oversight.

Alex Williamson, budget and policy analyst with Legislative Services, outlined the FY2025 supplementals to the committee and described the requests as a mix of federal requirements, implementation costs and updated forecasts. Williamson said the managed-care external quality review (EQR) is a federal requirement and that Idaho’s four managed-care plans need $1.35 million (one time) to meet that obligation. Williamson described other FY2025 requests as payments for implementation costs tied to the July go-live of the Idaho Behavioral Health Plan and residual entitlement costs the division…