Medicaid Budget Projected to End in the Red

On Sept. 30, the Department of Health Services (DHS) submitted an updated projection for the state’s Medicaid budget to the Joint Finance Committee. DHS estimates the Medicaid expenditures will exceed the budget by $21.4 GPR at the end of the 2019-2021 biennium.

The main reason cited for the negative projection is a decrease in the state’s federal medical assistance percentage (FMAP) rate for federal fiscal year 2021. Wisconsin’s rate will be .24 percent less than what was assumed in the final 2019-21 state budget. DHS notes that the state is only three months into the new biennium, and projections will continue to be updated quarterly.