DCH presents amended FY26 budget: Medicaid dominates spending as officials seek IES upgrades and a 1915 waiver
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Summary
The Georgia Department of Community Health told the House appropriations subcommittee that Medicaid accounts for roughly 97% of its budget and outlined the governor's amended-FY26 proposals including one-time $2,000 staff supplements, Katie Beckett salary backfill, a proposed 1915 waiver to fund caregiver respite, and a $35 million IES modernization request.
The Georgia Department of Community Health (DCH) told the House appropriations subcommittee on Feb. 1 that Medicaid drives nearly all of the department’s spending and outlined the governor’s requested amendments to the agency’s FY26 budget. "Medicaid drives about 97% of our budget," said Cody, CFO for DCH, during the presentation.
The department described its base state funding at roughly $5 billion and said most of that supports Medicaid benefits through managed care and fee-for-service programs. Cody highlighted proposed one‑time items the governor discussed in his State of the State, including a $2,000 supplement for state employees and specific line items to backfill recent salary increases for Katie Beckett caseworkers.
As part of the programmatic changes, DCH asked the committee to approve submission of a 1915 waiver to the Centers for Medicare & Medicaid Services to allow Medicaid reimbursement for certain nonmedical services, such as caregiver respite, intended to preserve family placements. "It's the intent there" to make caregiver respite Medicaid-eligible, Cody said.
DCH also presented projections for growth drivers: rising enrollment among dual-eligibles, adjustments for Medicare Part B and D, provider fee changes and lower-than-expected utilization for one‑time gene therapies affecting pharmacy costs. The agency described rightsizing of some low-income Medicaid projections based on current enrollment and capitation formulas.
On information technology, DCH sought continued funding for an Integrated Eligibility System (IES) upgrade through the Technology Empowerment Fund, asking the committee to add $35 million to last year’s $35 million allocation for a total planned investment of $70 million. Cody said the department is doing a technical assessment and plans to "reuse as much as we can" while engaging IT staff and beta testing with user feedback as part of the procurement timeline.
Committee members pressed DCH on public input for the Gateway redesign and the potential fiscal impact of pending federal legislation. When asked about HR 1 and its budgetary effects, Cody said Georgia — a non‑expansion state — likely will not see the same cuts some expansion states may face and that final CMS rules (expected ahead of mid‑year) are needed to calculate any dollar impacts precisely.
Next steps: DCH said it would provide additional details about user‑testing and eligibility rules for the $2,000 supplement if the governor’s office advances the proposal. The department told members it will await CMS final rules before offering a firm estimate of any federal‑policy impacts on state funding.