DSS outlines governor's human‑services proposals, flags federal limits and costs

Human Services Committee · March 3, 2026

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Summary

Department of Social Services Commissioner Andrea Barton Reeves summarized the administration's positions on bills affecting LIHEAP pricing, residential care home rates, MedConnect, antiretrovirals on the PDL, ICF/IDD per‑diem increases, and cautioned about federal constraints on emergency Medicaid expansion.

At the Human Services Committee, Department of Social Services Commissioner Andrea Barton Reeves presented the agency's written and verbal testimony on several governor and committee bills.

Reeves said HB 5355 would modernize LIHEAP vendor reimbursements by removing "county" references and memorializing regional pricing standards developed by a working group. On residential care homes, she said the department opposes statutory changes that would remove rebasing and raise state‑paid administrator salary caps because that would increase supplemental payments and undermine established rate‑setting practices.

The commissioner supported HB 5358 to codify a two‑year rebasing cadence for CLAs and ICFs when funds are available and supported sections of HB 50‑40 that raise per‑diem rates for ICF/IDD providers (5.8% in July 2026 and 6.3% in July 2027). She also backed adding antiretrovirals to the Medicaid preferred drug list to align coverage with clinical guidance and supported better review authority for high‑cost medications to improve rebate negotiations.

On emergency Medicaid (SB 327), Reeves cautioned that federal regulations limit what the state may cover and that recent federal policy changes on Medicaid data sharing could discourage some applicants or require careful legal review.

During the Q&A, departmental deputies clarified premium and enrollment effects for MedConnect and acknowledged MMIS and fiscal intermediary problems that have affected payments and program administration. The committee did not act on any measures; members requested follow‑up documentation including fiscal calculations and technical timelines.