Enhanced medicaid payments

AN ACT Relating to utilizing efficiency savings from federal 1
legislation to provide enhanced medicaid payments to providers and 2
hospitals; adding new sections to chapter 74.09 RCW; and declaring an 3
emergency. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 74.09 6
RCW to read as follows: 7
The medicaid enhanced provider rate account is created in the 8
state treasury. At the beginning of each fiscal year, the state 9
treasurer shall transfer the amount calculated by the authority under 10
section 2 of this act from the general fund to the medicaid enhanced 11
provider rate account. Moneys in the account may be spent only after 12
appropriation for the purpose of increased medicaid reimbursement 13
rates to providers and hospitals in the state. 14
NEW SECTION. Sec. 2. A new section is added to chapter 74.09 15
RCW to read as follows: 16
(1) By June 30th of each year, the authority shall calculate and 17
report to the office of the state treasurer and the fiscal committees 18
of the legislature the amount of state expenditures that would have 19
been made for the state's medicaid program under federal and state 20
S-3530.1
SENATE BILL 5881
State of Washington 69th Legislature 2026 Regular Session
By Senators Muzzall and Braun
Prefiled 12/15/25. Read first time 01/12/26. Referred to Committee
on Ways & Means.
p. 1 SB 5881
law as it existed prior to July 1, 2025, but were not made due to 1
reforms under P.L. 119-21, for the prior fiscal year.2
(2) Amounts calculated under this section must include, but not 3
be limited to, decreased state expenditures or lapsed appropriations 4
from: 5
(a) The moratoriums on implementation of rules relating to 6
eligibility and enrollment in medicare savings programs, the medical 7
assistance program, as codified at Title XIX of the federal social 8
security act, the state children's health insurance program, as 9
codified at Title XXI of the federal social security act, and P.L. 10
119-21 Secs. 71101 and 71102; 11
(b) Decreased medicaid caseload due to individuals' failure to 12
pass additional eligibility redeterminations required by 42 U.S.C. 13
Sec. 1396a(e)(14), P.L. 119-21 Sec. 71107; 14
(c) Decreased medicaid caseload due to individuals' failure to 15
meet community engagement requirements under 42 U.S.C. Sec. 16
1396a(xx), P.L. 119-21 Sec. 71119; 17
(d) Disenrollment of deceased individuals from medicaid coverage 18
as required by enhanced verification standards under 42 U.S.C. Sec. 19
1396a(ww), P.L. 119-21 Sec. 71104; 20
(e) Reductions in the period of retroactive coverage for the 21
medical assistance program, as codified at Title XIX of the federal 22
social security act, or the state children's health insurance 23
program, as codified at Title XXI of the federal social security act 24
under 42 U.S.C. Secs. 1396a (a)(34) and 1397bb (b)(1)(B), P.L. 119-21 25
Sec. 71112; and 26
(f) Modifications to cost sharing requirements for certain 27
medicaid expansion enrollees, 42 U.S.C. Sec. 1396o, P.L. 119-21 Sec. 28
71120. 29
(3) The report required under this section must include a 30
description of the methodology used to calculate the amount of 31
decreased expenditures, including references to caseload and 32
expenditure data. 33
NEW SECTION. Sec. 3. This act is necessary for the immediate 34
preservation of the public peace, health, or safety, or support of 35
the state government and its existing public institutions, and takes 36
effect immediately.37
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p. 2 SB 5881