OMB warns Medicaid and senior benefit payments require state supplemental or provider payments could stop
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Summary
OMB told senators that Medicaid and a senior benefits program need state general funds in the FY2026 supplemental—OMB cited roughly $34.4 million in state Medicaid need plus $1.1 million for senior benefits—to avoid stopping provider check‑rate payments before year end.
Lacey Sanders told the committee statutory, formula‑driven programs require supplemental funding for FY2026 or benefit and provider payments could stop.
On senior benefits, Sanders said eligibility and increased utilization mean the program needs roughly $1.1 million to continue payments through the remainder of the fiscal year; without a supplemental the program might have to end payments to eligible seniors.
On Medicaid, Sanders said updated mid‑February projections produced an overall request that includes approximately $34.4 million in state general funds and $361 million in federal receipt authority to cover utilization and ensure provider payments. She warned that without the state supplemental the state would be unable to sustain its 'check rate' payments to providers and would defer obligations into the next fiscal year.
"Without this $34,000,000 the state would need to stop the payments," Sanders said. Committee members pushed for clarity on how long current appropriations fund payments; Sanders said she would follow up with Medicaid staff and the assistant commissioner to provide timing detail.
The committee did not take action; Sanders said the Medicaid projection was updated Feb. 18 and that OMB will continue to provide clarifying material to the committee.