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.

Managed Care · Finance