Indiana underestimated Medicaid cost by nearly $1 billion, new report says
ABC News
Indiana agencies say previous estimates of Medicaid expenses fell nearly $1 billion short of its now-predicted need
INDIANAPOLIS -- Indiana's initial estimate for Medicaid expenses is nearly $1 billion short of its now-predicted need, state lawmakers learned in a report that ignited concern over the state's budget and access to the low-income healthcare program.
A December outlook found that Medicaid is predicted to need $984 million more than what was thought in April, when the state's biennium budget was finalized.
State budget director Zachary Jackson told The Associated Press the forecast used to develop the budget allowed Indiana to move $525 million from Medicaid to the state's general fund in July. The state has directed that $271 million of that money be moved back to Medicaid to address the shortfall of the last year, he said.
According to the predictions presented to lawmakers on Tuesday, the state will need to appropriate $255.2 million more for the program before July 2024 and $457.9 million more for the following year.
The flawed April forecast was based on data that did not reflect the latest needs of enrollees, state agencies said. Jackson said demand for certain categories, such as elderly care, outpaced what state official anticipated. According to the report, home and community based long-term services and support are anticipated to be in need of the most funding over the next two years.
