The Mississippi Division of Medicaid asked lawmakers for a roughly $179 million increase in state spending for the coming fiscal year after receiving a steep increase last year that squeezed other parts of the state’s budget.
The proposed increase for the fiscal year beginning in July 2027 represents a 15% increase over last year. The agency is also anticipating a $34 million budget shortfall for the current fiscal year.
But Mississippi Medicaid’s $1.3 billion state funding request is expected to change again, Cindy Bradshaw, the state’s executive director for Medicaid, told the Joint Legislative Budget Committee at a Friday hearing.
“The one thing I can guarantee you is that will not be the amount that we need,” she said. “This is a fluid process, and it changes quickly.”
For example, officials learned Thursday the federal government will increase the share of money it pays towards the state Medicaid program in 2027. Mississippi’s federal matching rate will increase slightly — by .0024% — for the upcoming fiscal year, said Bradshaw. This is expected to reduce the agency’s request by roughly $25 million.
Medicaid is one of the state’s largest budget items, accounting for roughly a 10th of the state’s spending. The agency’s total projected budget for the upcoming fiscal year is $9.4 billion, including federal funds.
The agency administers health coverage to nearly 700,000 children and low-income pregnant, disabled and elderly Mississippians. The program’s enrollment is at its lowest level in over a decade and decreased by about 7,500 people in the past year.
Mississippi Medicaid has launched initiatives to lower costs, Bradshaw said. Efforts include audits of contractors and long-term care facilities, reviewing prior authorizations and reducing managed care companies’ profit margins. Managed care companies receive per-member payments to maintain a provider network and implement programs intended to improve health outcomes for enrollees.
The agency’s requested increase is smaller than its ask last year early in the budgeting process of nearly $390 million. Lawmakers were stunned by the request and baffled by Gov. Tate Reeves’ roughly $160-million-lower proposal. Reeves’ office oversees Medicaid.
Lawmakers ultimately approved a roughly $200 million increase in Medicaid’s budget for the current fiscal year, setting aside $100 million from the state’s capital expense fund. The fund is a reserve intended for one-time expenses, such as repairs and renovations of state-owned properties. State legislators also approved a $35 million deficit appropriation to cover a shortfall for the prior fiscal year.
Medicaid officials said last year’s large funding increase was the result of a a reserve of funds leftover from the COVID-19 pandemic running out, which necessitated a significant boost in state appropriations to maintain services at the same level
After lawmakers balked at the agency’s budget request for the current fiscal year, Bradshaw warned in January that underfunding the agency could force it to cut payments to providers.
State agencies present budget requests to the Joint Legislative Budget Committee in the fall. The committee makes recommendations in December, and most appropriations bills are passed by lawmakers in the latter months of the legislative session, which ends in April.
Hence then, the article about mississippi medicaid seeks 179m budget increase less than in 2025 was published today ( ) and is available on Mississippi Today ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Mississippi Medicaid seeks $179M budget increase, less than in 2025 )
Also on site :