Ohio's Medicaid budget is set for significant changes as the Ohio Senate Medicaid Committee convened on April 29, 2025, to discuss the proposed budget for the 2026-2027 fiscal years. The total budget request stands at $42.3 billion, with a notable focus on enhancing health and wellness services for Ohioans while managing costs effectively.

The proposed budget reflects a decrease of 2.8% in state funding for fiscal year 2026, amounting to $6.5 billion, but anticipates a 7.1% increase to $7.1 billion for fiscal year 2027. This shift comes despite a nearly flat estimated caseload, raising questions about the projected 7-8% growth in Medicaid spending. The committee highlighted the importance of understanding the factors contributing to this increase, including rising costs associated with hospital financing and per-member expenses.

Key initiatives within the budget include over $3.6 billion in cost containment measures aimed at reducing state general revenue expenditures. The committee emphasized the need for transparency in how these funds will be allocated and the expected outcomes for Ohio's Medicaid recipients.

Additionally, the meeting addressed the impact of one-time federal funding from the American Rescue Plan Act (ARPA), which has allowed Ohio to offset some general revenue costs. This funding is crucial in maintaining service levels while managing the overall budget.

As the committee continues to refine the budget, stakeholders are encouraged to review the detailed attachments provided, which include actuarial reports and quality data related to OhioRISE, a program aimed at improving mental health services for children. The discussions from this meeting will play a pivotal role in shaping the future of Medicaid services in Ohio, ensuring that the needs of the community are met while maintaining fiscal responsibility.