Appropriation; Medicaid, Division of.

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To: Appropriations C;
Appropriations A
MISSISSIPPI LEGISLATURE REGULAR SESSION 2026

By: Representatives Deweese, Read, Bennett,
Creekmore IV, Currie, McGee, Mickens, Scott,
Turner

HOUSE BILL NO. 1912
(As Sent to Governor)

AN ACT MAKING AN APPROPRIATION TO THE GOVERNOR'S 1
OFFICE-DIVISION OF MEDICAID FOR THE PURPOSE OF PROVIDING MEDICAL 2
ASSISTANCE UNDER THE MISSISSIPPI MEDICAID LAW AND DEFRAYING THE 3
EXPENSES OF THE ADMINISTRATION OF THAT LAW FOR THE FISCAL YEAR 4
2027. 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: 6
SECTION 1. The following sum, or so much thereof as may be 7
necessary, is appropriated out of any money in the State General 8
Fund not otherwise appropriated, to the Governor's 9
Office - Division of Medicaid for the purpose of providing medical 10
assistance under the Mississippi Medicaid Law and defraying the 11
expenses of the administration of such law, as provided in Section 12
43-13-101 et seq., Mississippi Code of 1972, for the fiscal year 13
beginning July 1, 2026, and ending June 30, 2027.................. 14
............................................... $ 1,026,866,812.00. 15
SECTION 2. The following sum, or so much thereof as may be 16
necessary, is appropriated out of any money in the State Treasury 17
to the credit of the Medical Care Fund created by Section 18
43-13-143, Mississippi Code of 1972, for the purpose of providing 19
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medical assistance under the Mississippi Medicaid Law for the 20
fiscal year beginning July 1, 2026, and ending June 30, 2027...... 21
............................................... $ 657,534,322.00. 22
SECTION 3. The following sum, or so much thereof as may be 23
necessary, is appropriated out of any money in any special fund in 24
the State Treasury to the credit of the Governor's 25
Office - Division of Medicaid which is comprised of special source 26
funds collected by or otherwise available to the Division, for the 27
purpose of providing medical assistance under the Mississippi 28
Medicaid Law and defraying the expenses of the administration of 29
such law, for the fiscal year beginning July 1, 2026, and ending 30
June 30, 2027.................................. $ 6,835,594,770.00. 31
Prior period recovery of funds may be maintained and expended 32
by the division when the recovery is received or finalized. Any 33
recoveries due to audits or third party recoveries may be used to 34
offset the cost of such audits and third party recoveries and as 35
such, the division may escalate Contractual Services as needed for 36
these purposes. 37
SECTION 4. The following sum, or so much thereof as may be 38
necessary, is appropriated out of any money in the State Treasury 39
to the credit of the Health Care Expendable Fund, for the purpose 40
of defraying the expenses of the Governor's Office - Division of 41
Medicaid for the fiscal year beginning July 1, 2026, and ending 42
June 30, 2027.................................. $ 43,230,003.00. 43
The above funds shall be allocated as follows: 44
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CHIP Program at up to 209% level of.......................... 45
poverty.............................. $ 9,000,000.00. 46
Medical Program Matching Funds............ $ 34,230,003.00. 47
It is the intention of the Legislature that funds may be 48
shifted among the above allocated line items where needed at the 49
discretion of the Executive Director of Governor's Office - 50
Division of Medicaid. 51
SECTION 5. Of the funds appropriated under the provisions of 52
this act, not more than the following amount of funds, with the 53
exception of the provisions in this section, shall be expended 54
only for "Personal Services," which includes "Vacancy Funding," 55
for the following authorized number of employment headcount: 56
FUNDING: 57
General Funds: $ 28,342,068.00 58
Special Funds: $ 33,726,853.00 59
Total Funds: $ 62,068,921.00 60
PERSONAL SERVICES: 61
Employee Salaries, Wages and 62
Fringe Benefits: $ 59,630,666.00 63
Progressions: $ 0.00 64
Vacancy Funding: $ 2,438,255.00 65
Total Personal Services: $ 62,068,921.00 66
AUTHORIZED HEADCOUNT: 67
Permanent: 840 68
Time-Limited: 82 69
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As used in this section, the term "Personal Services" shall 70
mean funds provided under the major object of expenditure category 71
Personal Services for Salaries, Wages, and Fringe Benefits. Funds 72
in this category shall not be transferred to any other category. 73
It is the intention of the Legislature to ensure compliance 74
with the Variable Compensation Plan, as outlined in Section 75
25-9-147, Mississippi Code of 1972. Payment from these funds 76
shall be in accordance with the Variable Compensation Plan 77
promulgated by the Mississippi State Personnel Board. It is the 78
Legislature's intention that no employee's salary falls below the 79
minimum salary established by the Mississippi State Personnel 80
Board. 81
The State Personnel Board shall determine and publish the 82
projected annual cost of "Personal Services" based on monthly and 83
year-to-date payroll expenditures in compliance with the 84
provisions of this act. 85
With the funds herein appropriated, it shall be the agency's 86
responsibility to ensure that no single personnel action or 87
combination of personnel actions, when annualized, exceeds the 88
Fiscal Year 2027 appropriation for "Personal Services" with the 89
exception of escalated funds. Further, it shall be the agency's 90
responsibility to ensure that funds required to be appropriated 91
for "Personal Services" for Fiscal Year 2028 do not exceed Fiscal 92
Year 2027 funds appropriated for that purpose unless programs or 93
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positions are added to the agency's Fiscal Year 2027 budget by the 94
Mississippi Legislature. 95
If, at the time the agency takes any action to change 96
"Personal Services," the State Personnel Board determines that the 97
agency has taken or will take an action that would cause the 98
agency to exceed the funds appropriated in this act when 99
annualized for Fiscal Year 2027 or increase the need for "Personal 100
Services" for Fiscal Year 2028, when annualized, the State 101
Personnel Board shall process no salary actions until such time as 102
the requirements of the provisions of this section are met with 103
the exception of new hires determined to be essential for the 104
agency. 105
When used in this section, "Vacancy Funding" shall mean funds 106
included in the Total Personal Services amount listed above and 107
designated for approved vacancies in Fiscal Year 2027. These 108
funds are to be utilized to increase the number of filled 109
headcounts that were authorized but unfilled as of the last day of 110
Fiscal Year 2026. If the agency fills additional headcounts after 111
March 1, 2026, until the end of Fiscal Year 2026, the amount of 112
available Vacancy Funding may be proportionally adjusted to 113
reflect the updated number of filled headcounts. The agency shall 114
be responsible for ensuring that "Vacancy Funding" is used to 115
increase headcounts and not for promotions, title changes, 116
in-range salary adjustments, or any other mechanism for increasing 117
salaries for current employees. 118
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Any transfers or escalations shall be made in accordance with 119
the terms, conditions, and procedures established by law or 120
allowable under the terms set forth within this act. The State 121
Personnel Board shall not escalate positions or increase the 122
Personal Services total without written approval from the 123
Department of Finance and Administration. The Department of 124
Finance and Administration shall not provide written approval to 125
escalate any funds for salaries and/or headcounts without proof of 126
availability of new or additional funds above the appropriated 127
level. Unless specifically noted, all Fiscal Year 2026 escalated 128
headcounts have been accounted for and shall be converted to 129
authorized time-limited headcounts. 130
No general funds authorized to be expended herein shall be 131
used to replace federal funds and/or other special funds used for 132
salaries authorized under the provisions of this act and which are 133
withdrawn and no longer available. 134
None of the funds herein appropriated shall be used in 135
violation of the Internal Revenue Service's Publication 15-A 136
relating to the reporting of income paid to contract employees, as 137
interpreted by the Office of the State Auditor. 138
If the agency's total authorized headcount decreases from 139
Fiscal Year 2026 to Fiscal Year 2027, it will be the agency's 140
discretion as to what headcounts are removed. 141
SECTION 6. It is the intention of the Legislature that the 142
Governor's Office - Division of Medicaid shall maintain complete 143
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accounting and personnel records related to the expenditure of all 144
funds appropriated under this act and that such records shall be 145
in the same format and level of detail as maintained for Fiscal 146
Year 2026. It is further the intention of the Legislature that 147
the agency's budget request for Fiscal Year 2028 shall be 148
submitted to the Joint Legislative Budget Committee in a format 149
and level of detail comparable to the format and level of detail 150
provided during the Fiscal Year 2027 budget request process with 151
the Children's Health Insurance Program (CHIP) being separated 152
from the Medical Services Program and submitted as a separate 153
program. All Medicaid 1915 (C) Home and Community Based Services 154
Waivers shall be presented as a budget program separate from the 155
Medical Services Program. In addition, the performance measures 156
reported for the Medical Services Program shall include an 157
unduplicated case count of individuals served by eligibility 158
status, and the number and the costs of emergency room visits. 159
SECTION 7. In compliance with the "Mississippi Performance 160
Budget and Strategic Planning Act of 1994," it is the intent of 161
the Legislature that the funds provided herein shall be utilized 162
in the most efficient and effective manner possible to achieve the 163
intended mission of this agency. Based on the funding authorized, 164
this agency shall make every effort to attain the targeted 165
performance measures provided below: 166
FY2027 167
Performance Measures Target 168
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Administrative Services 169
Admin as a Percent of Total Budget 2.97 170
Third Party Liability Cost Avoided ($Thou) 1,774,851.00 171
Percent of Clean Claims Processed within 172
30 Days of Receipt 99.50 173
Percent of Clean Claims Processed within 174
90 Days of Receipt 100.00 175
Percent of Applications Processed within 176
Std. of Promptness - Medicaid 95.00 177
Third Party Funds Recovered 13,019,630.00 178
Number of Providers Submitting 179
Electronic Claims 32,000 180
Turnover Rate of Employees (%) 15.00 181
Medical Services 182
Costs of Emergency Room Visits 179,414,305.00 183
Number of Emergency Room Visits 351,017 184
Medicaid Recipients - Enrolled (Persons) 668,825 185
Child Physical Exams (Ages 0-20) 289,579 186
Adult Physical Exams (21-Older) 7,775 187
Number of Fraud & Abuse Cases Investigated 350 188
Number of Medicaid Providers 36,773 189
Number of Medicaid Beneficiaries 190
Assigned to a Managed Care Company 440,000 191
Percent of MSCAN Diabetic Members Aged 192
17-75 Receiving HBA1c Test 89.93 193
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Percent of MSCAN Members with Persistent 194
Asthma are Appropriately Prescribed 195
Medication 77.24 196
Rate of EPSDT Well Child Screening (%) 64.00 197
Percent Change in Number of Recipients 198
Enrolled From Last Year 3.00 199
Percent Change in Number of Providers 200
From Last Year 0.00 201
Children's Health Insur Prg (chip) 202
Number of CHIP Enrollees 55,000 203
Percent of CHIP Applications Processed 204
within Std. of Promptness 95.00 205
Home & Comm-based Waiver Prg 206
Elderly & Disabled - Persons Served 21,127 207
Elderly & Disabled - Funded Slots 20,121 208
Elderly & Disabled - Total Authorized Slots 22,200 209
Assisted Living - Persons Served 964 210
Assisted Living - Funded Slots 918 211
Assisted Living - Total Authorized Slots 1,100 212
Independent Living - Persons Served 3,229 213
Independent Living - Funded Slots 3,075 214
Independent Living - Total Authorized Slots 5,800 215
Traumatic Brain Injury - Persons Served 1,025 216
Traumatic Brain Injury - Funded Slots 1,076 217
Traumatic Brain Injury - Total 218
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Authorized Slots 1,150 219
Intellectual Disability - Persons Served 3,518 220
Intellectual Disability - Funded Slots 3,350 221
Intellectual Disability - Total 222
Authorized Slots 4,150 223
Percent Change in Persons On Waiting 224
List (E&D) 2.00 225
Percent Change in Persons On Waiting 226
List (AL) 2.00 227
Percent Change in Persons On Waiting 228
List (IL) 2.00 229
Percent Change in Persons On Waiting 230
List (TBI) 2.00 231
Percent Change in Persons On Waiting 232
List (IDD) 2.00 233
A reporting of the degree to which the performance targets 234
set above have been or are being achieved shall be provided in the 235
agency's budget request submitted to the Joint Legislative Budget 236
Committee for Fiscal Year 2028. 237
SECTION 8. It is the intention of the Legislature that 238
whenever two (2) or more bids are received by this agency for the 239
purchase of commodities or equipment, and whenever all things 240
stated in such received bids are equal with respect to price, 241
quality and service, the Mississippi Industries for the Blind 242
shall be given preference. A similar preference shall be given to 243
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the Mississippi Industries for the Blind whenever purchases are 244
made without competitive bids. 245
SECTION 9. The Governor's Office - Division of Medicaid 246
shall provide statistical and financial reports on a monthly basis 247
to the Legislative Budget Office and the PEER Committee. These 248
reports shall include, but are not limited to, an accounting of 249
all funds spent in the medical program, the CHIP program, the 250
Dialysis Transportation program, and each of the Home and 251
Community Based Waiver programs, and an accounting of all funds 252
spent in the administrative program, participant statistics and 253
any other information requested by the Legislative Budget Office 254
and the PEER Committee. 255
The Governor's Office - Division of Medicaid shall perform 256
its cash flow projections on a predetermined monthly schedule and 257
make this and any other information requested available, upon 258
request, to the Chair of the Senate Public Health and Welfare 259
Committee, the House Public Health and Human Services Committee, 260
the House and Senate Medicaid Committees, the House and Senate 261
Appropriations Committees, the Legislative Budget Office and the 262
PEER Committee. A summary of this cash flow projection shall also 263
be presented in the report referenced in the above paragraph. 264
SECTION 10. Of the funds appropriated under the provisions 265
of this act in an amount not to exceed, Two Million Seven Hundred 266
Fifty Thousand Dollars ($2,750,000.00) is provided for the purpose 267
of funding a temporary program to provide nonemergency 268
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transportation to locations for necessary dialysis services for 269
end-stage renal disease patients who are sixty-five (65) years of 270
age or older or are disabled as determined under Section 271
1614(a)(3) of the federal Social Security Act, as amended, whose 272
income did not exceed one hundred thirty-five percent (135%) of 273
the nonfarm official poverty level as defined by the Office of 274
Management and Budget and whose eligibility was covered under the 275
former category of eligibility known as Poverty Level Aged and 276
Disabled (PLADS). 277
SECTION 11. It is the intention of the Legislature that the 278
funds appropriated in this act to the Governor's Office - Division 279
of Medicaid for the Mississippi Coordinated Access Network 280
(MS-CAN) program be used in the most efficient and effective 281
manner possible to achieve the intended mission of the division. 282
The division and the coordinated care organizations with which the 283
division has contracted to conduct the MS-CAN program shall 284
establish baselines for the health-related outcome measurement for 285
each of the following health focus areas for presentation at the 286
Joint Legislative Budget Committee hearings for Fiscal Year 2027, 287
which will be used as the baseline levels for establishing targets 288
for improvements in quality of care performance measures for the 289
MS-CAN program in Fiscal Year 2027 and later fiscal years: 290
a. Comprehensive Diabetes Care (CDC) or successive measure. 291
b. Medication Management for People with Asthma (MMA) or 292
successive measure. 293
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c. Annual Monitoring for Patients on Persistent Medications 294
(MPM) or successive measure. 295
d. Adult BMI Assessment (ABA) and Weight Assessment and 296
Counseling for Nutrition and Physical Activity for 297
Children/Adolescents (WCC) or successive measure. 298
In addition, for comparison purposes, these same baselines 299
for the health-related outcome measurements shall be established 300
for similar Medicaid recipients who are not enrolled in the MS-CAN 301
program. 302
SECTION 12. It is the intention of the Legislature that the 303
Governor's Office - Division of Medicaid and the Department of 304
Human Services shall continue to work together to implement 305
Section 43-12-1, Mississippi Code of 1972, known as the "Medicaid 306
and Human Services Transparency and Fraud Prevention Act". 307
SECTION 13. Of the funds appropriated in Sections 1, 2, and 308
3 of this act, it is the intention of the Legislature that 309
continued funding at or above the Fiscal Year 2026 appropriated 310
amount shall be provided for four thousand one hundred (4,100) 311
slots for the Department of Rehabilitation Services Home and 312
Community Based Waiver programs, and for three thousand (3,000) 313
slots for the Department of Mental Health for the Home and 314
Community Based waiver program for Independent Living and the IDD 315
Waiver program. 316
SECTION 14. The Governor's Office - Division of Medicaid is 317
authorized to expend funds appropriated herein as necessary to 318
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provide currently existing home and community based services 319
through any CMS approved state plan or home and community based 320
services waiver to individuals who qualify for those services to 321
avoid institutionalization or to transition an individual from an 322
institution to any home and community based setting. Provision of 323
such services shall not count against any limit imposed under this 324
act. It is the intention of the Legislature that the cost of 325
providing home and community based services shall not exceed the 326
cost of nursing facility services, as determined by the Division. 327
SECTION 15. Of the funds appropriated in Section 3 of this 328
act, One Hundred Million Dollars ($100,000,000.00), or so much 329
thereof, shall be derived out of any money in the State Treasury 330
to the credit of the Capital Expense Fund, as created in Section 331
27-103-303, Mississippi Code of 1972, and allocated in a manner as 332
determined by the Treasurer's Office to the Division of Medicaid 333
for the purpose of paying costs associated with the operation of 334
the agency. 335
SECTION 16. With the funds appropriated herein, the 336
Mississippi Division of Medicaid is authorized to make payments 337
for expenses incurred during prior fiscal years for an amount not 338
to exceed Six Hundred Seventeen Thousand Five Hundred Seventy-nine 339
Dollars and Eighty Cents ($617,579.80). These payments are for 340
invoices from Solventum and Health Management System. 341
SECTION 17. The money herein appropriated shall be paid by 342
the State Treasurer out of any money in the State Treasury to the 343
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ST: Appropriation; Medicaid, Division of.
credit of the proper fund or funds as set forth in this act, upon 344
warrants issued by the State Fiscal Officer; and the State Fiscal 345
Officer shall issue his warrants upon requisitions signed by the 346
proper person, officer or officers, in the manner provided by law. 347
SECTION 18. This act shall take effect and be in force from 348
and after July 1, 2026. 349