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LSO presents $235M Medicaid spending increase and legislative cut options
Summary
LSO analyst Alex Williamson told the committee Medicaid spending is forecasted to rise by $235 million and outlined options that would require legislation, including deeper hospital-rate cuts and changes to provider rates, MCO administrative reviews, and possible statutory service removals.
Alex Williamson, senior budget and policy analyst with the Legislative Services Office, presented the Idaho Department of Health and Welfare's Medicaid outlook and the Governor's recommended adjustments. She said, "the overall forecasted increase for Medicaid was $235 million," and described a Basic Plan that includes a $25 million recommendation for one-time use of Millennium Income Funds as part of $62 million in dedicated funds.
Ms. Williamson emphasized that any of the potential saving options would require legislative action. She listed specific possibilities: additional reductions to hospital rates beyond a proposed 4 percent cut; reductions to residential habilitation provider rates; evaluating administrative costs and managed care organization (MCO) contracts; and removing some services currently specified in Idaho Code. Committee members did not adopt any of the options during the meeting; Ms. Williamson presented these to frame forthcoming budget choices for the Legislature.
