Higher-than-expected costs create shortfall in budget.
State Medicaid officials are facing an estimated shortfall of $28.5 million in Gov. Jack Markell’s proposed budget for the upcoming fiscal year because of higher-than-expected costs.
Officials told lawmakers Wednesday that while Markell’s budget proposal includes $40 million in additional Medicaid spending, they now expect they’ll need more than $68 million.
Officials say they need an estimated $14.2 million more than initially thought to cover pediatric costs for children on Medicaid, which is expected to cost state taxpayers more than $770 million next year.
Meanwhile, $13.2 million in Medicaid funding that officials thought they would be able to carry over from this year has been eaten up by cost increases.
Officials say they also are looking at an additional $1.4 million in spending because of inflation and volume growth.