ID S1201

Appropriates $691,592,600 to the Department of Health and Welfare's Division of Medicaid for fiscal year 2026, covering administration, coordinated care, enhanced, basic, and expansion Medicaid plans, plus extended employment services

Reduces the Expansion Medicaid Plan appropriation by $17,400,000 ($6,050,000 from state general funds and $11,350,000 from federal funds) for fiscal year 2026

Directs the Division of Medicaid to explore value-based payment models for outpatient addiction treatment focused on long-term recovery outcomes, with a report due by January 15, 2026

Requires the division to transition multi-year contracts to align with the state fiscal year and eliminate mid-year contract adjustments that increase spending without legislative appropriation

Appropriates an additional $415,226,800 for fiscal year 2025 on an emergency basis, primarily for trustee and benefit payments across various Medicaid plans