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Committee discusses moving school‑operated Medicaid spending authority to AHS and terminating Medicare Advocacy contract
Summary
Committee reviewed language shifting spending authority for a school‑operated Medicaid program from the Agency of Education to the Agency of Human Services (DIVA) and questioned termination of the Medicare Advocacy Program contract; the commissioner said service may continue in‑house or be reprocured and asked program managers to provide performance details.
The Appropriations Committee examined several health‑program changes during the FY2027 budget review, including an administrative transfer of the school‑operated Medicaid spending authority and a contract termination for the Medicare Advocacy Program.
Commissioner Adam Greshing explained the budget proposes moving spending authority for a school‑operated Medicaid program from the Agency of Education to the Agency of Human Services (DIVA). He said the shift is primarily a change in spending authority rather than an immediate reorganization of staff, and acknowledged there will be a transition period in the first quarter of FY27 when DBAs must manage payments that previously would have come from the Agency of Education.
Separately, the budget language lists termination of the Medicare Advocacy Program contract, described in the packet as due to poor performance. Greshing told the committee that contract termination does not mean the service will stop: "What it implies is that we don't think the service has contracted is doing what we want it to do. So maybe that means we do it in house, maybe we do it elsewhere," he said. Vermont Legal Aid was identified in the discussion as the contractor that has historically operated a component of the advocacy program; committee members asked for specific performance information and for staff to explain whether the cancellation will affect beneficiaries.
Why it matters: Shifting spending authority can change oversight and operational accountability for reimbursements and school‑based claims. Changes to advocacy contracts may affect vulnerable Medicare‑Medicaid dual‑eligible individuals who rely on outreach and eligibility assistance.
Next steps: Committee members requested program staff, contract managers and Vermont Legal Aid (if engaged) return with performance data and a plan to ensure continuity of beneficiary assistance during any contract transition.
