Subcommittee adopts H‑1 substitute for House Bill 5607, sends Medicaid and behavioral‑health package to appropriations

Chair Van Werkom convened the House Appropriations Subcommittee on Medicaid and Behavioral Health and the panel adopted the H‑1 substitute for House Bill 5607, advancing the DHHS Medicaid and behavioral‑health budget recommendation to the full Appropriations Committee.

Kent Dall, senior fiscal analyst at the House Fiscal Agency, gave the subcommittee a line‑by‑line overview of the recommendation, saying the package totals about $22.9 billion gross and $5.9 billion in general fund support for FY 2026‑27. "Looking at gross, 22,900,000,000 gross, over year to date, that's 5,900,000,000 general fund," Dall said, and he noted the plan represents roughly a $1.0 billion gross increase and $148.9 million general‑fund increase over year‑to‑date while reflecting a net reduction of 44.5 FTE positions.

Dall walked members through major changes: traditional Medicaid caseload adjustments ($617.6 million gross; $159.1 million GF), actuarial soundness adjustments both branches accepted, retention of provider‑tax boilerplate in sections 18.33 and 18.34 rather than moving those revenues into Part 1, and the House’s decision…