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.