DHCF outlines eligibility cuts, provider changes and Alliance enrollment cap in FY26 budget testimony

Deputy Mayor Wayne Turnage and DHCF officials presented the mayor's proposed fiscal‑year 2026 budget to the Committee on Health on June 9, framing the proposal as a response to steep projected revenue declines and rapid growth in local spending for Medicaid and the Alliance program.

Turnage described three "foundational pillars" for Medicaid cost containment — eligibility, benefits and provider rates — and said the administration's package of changes would produce $332,000,000 in local fund savings for Medicaid and Alliance combined, of which $142,000,000 would be reinvested and the net local savings would be $191,000,000. "The largest reductions were made in eligibility," he said, adding that about 88% of the local savings in the proposal came from eligibility changes.

Major elements described by DHCF

- Eligibility reductions: DHCF plans to reduce eligibility thresholds for certain optional populations and focus on beneficiaries at the higher end of eligibility ranges. Turnage and DHCF officials said these changes target groups such as childless adults and parent/caretaker relatives within specific income bands; DHCF estimated a point‑in‑time population of about 25,575…