DHS revises pharmacy carve-out timetable, updates housing-stabilization eligibility and reports $160M–$264M repricing swings

The Department of Human Services told the Senate Health and Human Services Committee that changes in timing and technical corrections altered projected savings in the governor’s revised budget.

Elise Bailey, DHS budget director, said the department postponed the effective date for the proposed pharmacy benefit carve-out — moving the start from Jan. 1, 2026 to July 1, 2026 — because more time is needed to establish the sole administrator model and account for payment timing between managed care organizations and fee-for-service administration. The timing change reduces savings in the near term and requires the state to “buy back” a withhold payment timing difference. Bailey also said DHS clarified that MinnesotaCare is not affected by the carve-out; the change applies to Medical…