Louisiana Department of Health outlines $21.4B budget for FY 2026

The Louisiana Legislature's Finance Committee convened on March 25, 2025, to discuss the budget for the Louisiana Department of Health (LDH) for the upcoming fiscal year. The meeting focused on the department's extensive responsibilities, budgetary adjustments, and the implications of Medicaid funding.

The LDH, which oversees the health and well-being of Louisiana citizens, operates through 21 agencies and is primarily funded by Medicaid, which constitutes approximately 89% of its budget. The committee reviewed a detailed presentation outlining the department's financial structure, including a breakdown of expenditures by agency and category.

Key discussions highlighted the projected budget for the LDH, which is set at $21.4 billion for the next fiscal year. This figure reflects a significant increase driven by adjustments in Medicaid funding, including a $1.3 billion increase attributed to managed care adjustments. The committee noted that federal funds account for 71% of the department's financing, with the general fund contributing only 15%.

The meeting also addressed personnel changes within the department, including a reduction of 50 authorized positions and adjustments to various funding sources. The committee emphasized the importance of maintaining efficient operations while ensuring that essential health services remain accessible to vulnerable populations, including the mentally ill, elderly, and those with disabilities.

Additionally, the committee discussed the implications of recent legislative actions, including the establishment of the Office of the Surgeon General, which is tasked with providing clinical guidance and improving health outcomes statewide. The budget for this new office is approximately $4.8 million, primarily funded through federal sources.

As the meeting concluded, interim Secretary Drew Maranto reiterated the department's commitment to collaboration with the legislature and the necessity of prioritizing mandatory funding increases to maintain compliance with federal requirements. The committee's discussions underscored the ongoing challenges and complexities of managing health services in Louisiana, particularly in light of fluctuating Medicaid enrollment and funding dynamics.

The Finance Committee will continue to review the proposed budget and make recommendations as necessary, ensuring that the health needs of Louisiana's citizens are met effectively and efficiently.