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State Policy·WA·June 16, 2026
Washington Sued Over Medicaid Assisted Living Funding Cuts
Washington state faces litigation over budget cuts that reduced tens of millions in state funding for assisted living facilities serving Medicaid patients. Democratic lawmakers made the cuts to address a budget shortfall this year. The lawsuit challenges the state's decision to reduce payments to these facilities. The cuts affect assisted living providers that rely on Medicaid reimbursement for long-term care services.
Why it matters for managed care
State funding cuts to assisted living facilities can reduce provider network adequacy, force facility closures, and shift higher-acuity patients to managed care plans' responsibility for alternative placement or higher-cost institutional care.
LTSS · Long-Term Care · Managed Care
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