Monthly and Regional Global Cap Updates
The FY 2016 Enacted Budget set a cap on State (Department of Health) Medicaid spending of $17.7 billion (including the Basic Health Program) in 2015-16.
- The Medicaid cap is consistent with the Governor´s goal to limit total Medicaid spending growth to no greater than the ten-year average rate for the long-term medical component of the Consumer Price Index (currently estimated at 3.6 percent).
- In order to implement the cap, the Department of Health (DOH) and the Division of Budget (DOB) will monitor and report program spending on a monthly basis to determine if spending growth is expected to exceed the forecasted Medicaid spending cap. Reports will be posted monthly on this website.
- If spending is projected to exceed the spending cap and Industry Led activities are not successful, DOH and DOB will develop and implement a plan of actions (known as the " Medicaid Savings Allocation Plans ") to bring spending in line with the cap.
- Medicaid Savings Allocation Plans could include actions such as modifying/suspending reimbursement methods (e.g., fees, premium levels, rates) and modifying program benefits. Once developed, such plans will be posted to the DOH Web site and written copies will be provided to the Legislature at least 30 days prior to implementation.