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Committee notes Medicaid letter on potential 4% provider-rate cut
Summary
Committee chair Petri said the committee received a June 18 letter from Medicaid Commissioner Lee about a potential 4% cut in some provider rates; the state budget director will verify projections as required by law and staff follow-up was promised.
Chair Petri told the committee that staff received correspondence dated June 18 from Commissioner Lee at the Department for Medicaid Services that flags a potential 4% reduction in certain provider rates. He noted House Bill 500 requires such notices be transmitted to the General Assembly and that the Office of the State Budget Director must confirm the projections before any deficiency is finalized. Petri said committee staff had spoken with Commissioner Lee and that follow-up would continue so members and the public are kept informed.
Why it matters: A 4% reduction in provider rates could affect Medicaid providers and beneficiaries; confirmation of the projection and any corrective steps would influence both provider operations and future budget planning.
What comes next: Petri asked budget staff to review and confirm numbers with the Medicaid commissioner and OSBD; committee staff said they would share updated information when available. The committee's next meeting was scheduled for Aug. 5, 2026 at 1:00 p.m. Eastern time.
