State Policy
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- State Policy · ND
North Dakota Offers $40M in Federal Grants for Rural Hospital Equipment
The North Dakota Department of Health and Human Services announced $40 million in grants for rural hospital equipment upgrades through the Rural Health Transformation Program. The funding comes from the state's $200 million allocation under the federal One Big Beautiful Bill Act passed in 2025. The grants are available to rural hospitals for clinical equipment modernization. Application details and timelines were not specified in the announcement.
- State Policy · AR
Arkansas Opens Applications for $55.6M Federal Rural Telehealth Funding
Arkansas Gov. Sarah Huckabee Sanders announced Monday that providers can now apply for shares of $55.6 million in federal funding for rural telehealth projects. The funding comes from the Rural Health Transformation Program established under the One Big Beautiful Bill Act passed in 2025. Applications are being administered through the Arkansas Department of Finance. The program aims to expand telehealth infrastructure and services in underserved rural areas of the state.
- State Policy · KY
Kentucky Medicaid Commissioner Addresses Budget Cuts at Frankfort Hearing
Kentucky Medicaid Commissioner Lisa Lee presented on proposed Medicaid budget cuts during a Wednesday hearing in Frankfort. Officials were questioned about provider recoupments, expenditures, and other financial data, though several key questions about the budget proposal remained unanswered. The hearing highlighted concerns about how proposed cuts would affect Medicaid beneficiaries and caregivers. No specific implementation timeline or financial details were reported.
- State Policy · CA
California Medi-Cal Expands Pre-Release Services for Justice-Involved Enrollees
California's Medi-Cal program is providing pre-release services to individuals exiting jails and prisons, connecting them to health care, housing, and supportive services before release. The initiative targets justice-involved Medicaid enrollees to improve continuity of care and reduce recidivism. Services include care coordination, medication access, and discharge planning while individuals are still incarcerated. The program reflects California's use of federal flexibilities allowing Medicaid coverage up to 90 days before release from correctional facilities.
- State Policy · WV
West Virginia Survey Finds 55% of Medicaid Recipients Unaware of 2027 Work Requirements
A new survey reveals that 55% of West Virginia Medicaid recipients are unaware of work requirements set to begin in 2027, affecting more than 161,000 enrollees. The requirements will condition eligibility on work or qualifying activities for certain adult beneficiaries. Implementation begins next year, requiring managed care organizations to support member communications and coordinate exemption verification processes. Low awareness levels signal potential enrollment disruptions and administrative burden for MCOs managing eligibility transitions.
- State Policy · GA
Georgia Democrats Campaign on Medicaid Expansion Despite Federal Legislative Changes
Democratic candidates in Georgia's 2026 primary are campaigning on Medicaid expansion despite federal legislative changes enacted in 2025 that may complicate implementation. Healthcare affordability remains a top voter concern, with majority support for expansion across party lines according to KFF polling—72% of Democrats, 63% of independents, and 47% of Republicans. The candidates' expansion pledges must now account for new federal requirements or constraints passed in the previous year. The timing and feasibility of expansion will depend on how state officials navigate the altered federal framework.
- State Policy
States Cut Immigrant Health Coverage Amid Budget Pressure from Federal Medicaid Reductions
Several states that use state-only funds to cover healthcare for undocumented immigrants are reducing or eliminating those programs due to budget constraints. The cuts follow federal Medicaid funding reductions and the expiration of enhanced Affordable Care Act subsidies. States affected include those that previously expanded coverage beyond federal eligibility requirements using state general funds. The reductions take effect as states finalize their fiscal year 2027 budgets, with some changes beginning as early as July 2026.
- State Policy · MO
Missouri Rural Hospitals Say $216M Federal Grant Insufficient to Offset Medicaid Cuts
Rural hospitals in Missouri are warning that a $216 million federal grant awarded in December 2025—part of a five-year, $50 billion rural healthcare investment—will not offset upcoming federal Medicaid reimbursement cuts. The hospitals say the reductions will further strain already fragile rural healthcare systems. Missouri received the funding as part of a broader Rural Health initiative, but providers argue the grant falls short of mitigating the financial impact of federal Medicaid payment reductions affecting hospital operations statewide.
- State Policy · CA
California Health Care Foundation Report Examines County-Administered Medicaid Eligibility Friction
The California Health Care Foundation published a paper analyzing structural and programmatic challenges in state-supervised, county-administered Medicaid eligibility systems. The report identifies inefficiencies inherent in the governance model where states oversee eligibility determination but counties execute it, and proposes policy considerations for modernization. This governance structure exists in several states including California, Colorado, Minnesota, New York, North Carolina, North Dakota, Ohio, and Wisconsin. The analysis is relevant for states considering eligibility system reforms and for managed care organizations operating in counties with persistent enrollment and renewal friction.
- State Policy · NH
New Hampshire Enacts Budget With Medicaid Copays, Premiums, and DHHS Cuts
In June 2025, Governor Kelly Ayotte signed New Hampshire's two-year budget cutting $51 million from the Department of Health and Human Services and imposing new Medicaid copays and premiums on certain recipients. The budget also reduced Department of Corrections funding by $10 million and cut support for the state university system. The policy changes affect Medicaid beneficiaries and state health services delivery. Managed care organizations operating in New Hampshire will need to implement the new cost-sharing requirements and adapt to reduced state DHHS capacity.
- State Policy · PA
Pennsylvania Delays $1.3 Billion in Medicaid MCO Payments to Balance Budget
Pennsylvania adopted a $50.8 billion budget that delays $1.3 billion in payments to Medicaid managed care organizations as part of accounting maneuvers to preserve an $8 billion rainy day fund. The legislature passed the budget two weeks late, using delayed MCO payments along with more than $500 million from special funds to close the gap. House Appropriations Chair Jordan Harris told reporters the approach ensures Medicaid enrollees still receive care but shifts the timing of MCO reimbursements. The budget includes $900 million in new education spending but no new revenue sources.
- State Policy · CA
California Governor Defends Medicaid Spending on Housing and Food Amid GOP Fraud Claims
California Governor Gavin Newsom is defending the state's use of Medicaid funds for housing and food services for high-cost patients, as Republican lawmakers characterize these expenditures as waste, fraud, and abuse. The state has incorporated social determinants of health services into its Medicaid program to address needs of complex, high-utilizing enrollees. Newsom acknowledges concerns about potential federal funding cuts but maintains the state's holistic care approach is appropriate. This political tension creates uncertainty for managed care organizations operating California's CalAIM program, which relies heavily on these non-traditional service categories.
- State Policy
States Consider Wage Cuts for Family Caregivers of People with Disabilities
Multiple states are considering significant wage reductions for family caregivers who provide care to people with disabilities through Medicaid programs. These proposed cuts respond to state budget pressures following recent Medicaid funding reductions. The wage cuts would directly affect family members who serve as paid caregivers under state long-term services and supports programs. The changes threaten the financial stability of thousands of family caregivers who depend on these wages while providing essential home and community-based services.
- State Policy · NM
New Mexico Approves $8M Behavioral Health Plan for Northern Region
New Mexico's behavioral health oversight committee unanimously approved an $8 million plan for the state's northern region on Thursday, the second of 13 regional proposals under development. The committee is overseeing the state's broader effort to rebuild its behavioral health care infrastructure. The approval allows implementation to proceed in the northern region, though the article does not specify an effective date. This action signals continued progress in New Mexico's statewide behavioral health system redesign, which will affect managed care organizations serving Medicaid beneficiaries in the region.
- State Policy · NJ
New Jersey Bill Advances to Help Medicaid Recipients Meet Federal Work Requirements
New Jersey Democrats advanced legislation Monday to help Medicaid beneficiaries find volunteer positions that satisfy new federal work requirements for Medicaid and SNAP benefits. The bill aims to facilitate compliance with federal mandates by creating pathways to qualifying volunteer opportunities. The legislation responds to new federal work requirements that could affect Medicaid eligibility for certain adult beneficiaries. If enacted, the bill would provide infrastructure to connect beneficiaries with compliant work activities.
- State Policy · ID
Idaho Reports 36% Rise in Uninsured Young Children After Medicaid Redeterminations
Idaho's uninsured rate for children under age 6 increased 36% following post-pandemic Medicaid redeterminations, giving the state the fifth-highest rate nationally. The increase follows Idaho's removal of tens of thousands of children from Medicaid after the end of the COVID-19 public health emergency continuous coverage requirements. The report highlights coverage loss among young children eligible for CHIP and Medicaid during the unwinding period. Idaho Medicaid managed care organizations face higher rates of uninsured eligible children in their service areas.
- State Policy · OR
Oregon Allocates $37.5M to Rural Hospital Maternity Services After Federal Medicaid Cuts
Oregon will distribute up to $37.5 million to approximately 24 rural hospitals across 17 counties to strengthen maternity care services, combining a one-time $25 million state investment with at least $12.5 million in federal matching funds. The funding responds to recent federal Medicaid cuts that have destabilized rural maternity services. The initiative targets hospitals providing obstetric care in underserved areas where access to maternal health services has been declining. For Medicaid managed care organizations operating in Oregon, this investment may affect network adequacy requirements and maternity care capacity in their rural service areas.
- State Policy · SC
South Carolina Democratic Gubernatorial Candidates Support Medicaid Expansion
Three Democratic candidates for South Carolina governor—State Rep. Jermaine Johnson, attorney Mullins McLeod, and businessman Billy Webster—voiced support for Medicaid expansion during a June 3, 2026 debate focused on affordability. All three candidates agreed South Carolina should expand Medicaid eligibility under the Affordable Care Act. The candidates also expressed support for legalizing medical marijuana. South Carolina remains one of ten states that have not expanded Medicaid, leaving an estimated 230,000 low-income adults without coverage.
- State Policy · SC
South Carolina Enacts Vape Tax to Offset Medicaid Tobacco Revenue Decline
South Carolina enacted legislation taxing vapes with revenue directed to Medicaid to compensate for declining cigarette tax collections. The law takes effect in October 2026. Governor Henry McMaster signed the measure two weeks ago. The legislation addresses a budget gap facing South Carolina Medicaid as smoking rates decline and traditional tobacco tax revenue decreases, while simultaneously reducing taxes on electronic cigarettes that contain tobacco.
- State Policy · KY
Kentucky Governor Announces Medicaid Reimbursement Cuts Effective Under New State Budget
Kentucky Governor Andy Beshear announced Thursday that Medicaid reimbursement rates and other social service programs will face cuts under the two-year state budget passed by the Republican-controlled General Assembly. The reductions, which Beshear attributes to legislative budget decisions, will affect foster care programs and Medicaid provider payments. The timing of implementation and specific rate reductions were not detailed in the announcement. These cuts will directly impact managed care organizations operating in Kentucky through reduced capitation rates or altered service requirements.