Louisiana health officials report significant progress in Medicaid enrollment and developmental disability services

In a recent meeting of the Louisiana Finance Senate on March 25, 2025, significant discussions centered around Medicaid expansion and its impact on the state's healthcare funding, particularly regarding the Disproportionate Share Hospital (DISH) program and services for individuals with developmental disabilities.

One of the key highlights was the notable decrease in DISH funding, which has dropped to approximately $300 million, the lowest since the expansion of Medicaid. This reduction is seen as a positive development by lawmakers, who have been advocating for lower costs in this area. The decrease reflects a broader trend of improving healthcare access, with the uninsured rate in Louisiana falling from around 19-20% to approximately 11%. This shift indicates a successful effort to provide more residents with health coverage, particularly in the wake of the COVID-19 pandemic.

The meeting also addressed the ongoing challenges faced by the developmental disabilities network. Lawmakers expressed a commitment to prioritizing funding for waiver services, which are essential for individuals with urgent needs. Julie Foster Hagen, assistant secretary for the Office for Citizens with Developmental Disabilities, clarified that while there is no waiting list for these services, the demand remains high. The current budget does not project rate increases for developmental disability services, despite previous efforts to raise compensation for service providers. The existing minimum wage for workers in this sector stands at $9 per hour, which many stakeholders believe is insufficient.

Additionally, the meeting touched on the Early Steps program, which supports young children with developmental delays. Although there are no new increases in funding, past rate hikes have led to a greater number of providers, particularly in rural areas, enhancing service availability.

As the Finance Senate prepares for future discussions, including a joint Medicaid oversight meeting, the focus will remain on addressing the needs of vulnerable populations and ensuring that funding mechanisms are effectively aligned with the state's healthcare goals. The outcomes of these discussions will be crucial in shaping the future of healthcare services in Louisiana, particularly for those with developmental disabilities and other critical needs.