In its latest update to the Joint Committee on Finance, the Wisconsin Department of Health Services projected costs will exceed the Medicaid general purpose revenue (GPR) budget by $39.8 million over the next two years. The projection includes all Medicaid expenditure items in Act 9, including Governor Tony Evers’ veto message.
Projected costs are higher than the budget due to a number of factors. The state’s projected federal medical assistance percentage rate for tax year 2021 is lower than budgeted. The lower rate will increase GPR costs by $20 million over the last nine months of the biennium. Other factors include higher estimates for the state’s self-directed program for Wisconsin’s frail elders and adults with disabilities: Include, Respect, I Self-Direct (IRIS).
The estimated shortfall in this month’s projection is less than one percent of the Medicaid GPR budget for the biennium. Projected expenditures will change in subsequent quarterly reports once additional enrollment and utilization data is available.