Joint Finance panel approves Medicaid forecast adjustments, creates dedicated hospital-assessment program after heated debate

The Joint Finance-Appropriations Committee on Friday approved a 2026 Medicaid forecast supplemental and adopted the governor’s FY2027 Medicaid package, including a newly created hospital-assessment budget program and several enhancements intended to fund IT modernization, estate recovery and program-integrity work.

Alex Williamson, budget and policy analyst with the Legislative Services Office, told the committee the 2026 supplemental request equals $107,244,000 gross — about $92.6 million from the general fund, $23.67 million from dedicated funds and a federal reduction of roughly $9.02 million — and that the action, combined with provider-rate reductions enacted in Senate Bill 1331, produces a net impact shown in the packet. "This is the updated Medicaid forecast based on current rates, services, and eligible populations," Williamson said while walking through the packet and on-screen…