Ohio Legislative Service Commission
Limit (UPL) payments as well as to offset GRF spending. Without the
assessment revenue, the Ohio Department of Medicaid (ODM) had to use
more GRF than had been planned to make October Medicaid payments.
This imbalance between GRF and non-GRF spending should be corrected
when the assessment revenue is collected.
Through the first four months of FY 2017, across all funds,
Medicaid expenditures totaled $7.86 billion, $746.5 million (8.7%) below For the first
the year-to-date estimate. GRF Medicaid expenditures were $6.13 billion,
four months of
95.1 million (1.5%) below estimate, while non-GRF Medicaid
FY 2017, all-
expenditures were $1.73 billion, $651.4 million (27.4%) below estimate.
ODM is primarily responsible for administering Medicaid, with the
assistance of five other state agencies – Developmental Disabilities, Job
and Family Services, Health, Aging, and Mental Health and Addiction had a negative
Services. As seen from Table 5, ODM, the largest agency within this
program category, also had the largest year-to-date variance. Across all
funds, ODM's expenditures were $655.1 million (8.6%) below the year-to-
date estimate. Through the first four months of FY 2017, ODM's GRF
expenditures totaled $5.91 billion, which was $78.3 million (1.3%) below $95.1 million
estimate, and its non-GRF expenditures totaled $1.02 billion, which was
expenditures from the Department of Developmental Disabilities (DDD),
the second largest agency within this program category, totaled
576.8 million (36.1%) below estimate. GRF and non-GRF Medicaid
850.5 million through the first four months of FY 2017, which was
57.1 million (6.3%) below estimate. Together, ODM and DDD account for
about 99% of the Medicaid expenditure total.
Table 6 details all-funds Medicaid expenditures by payment
category. As seen from the table, Managed Care had the largest negative
variance for the year-to-date at $295.7 million (8.4%), which grew as a
result of consistent underspending due to new Managed Care rates for
016, effective January 1. These rates were lower than projected,
particularly those for the MyCare program, which provides managed care
services for Ohioans who receive both Medicaid and Medicare benefits.
The rates will continue through the end of the calendar year, meaning the
Managed Care category will likely continue to have a negative variance
through at least the first half of FY 2017. However, this variance was
partially offset by approximately $50 million of pay-for-performance
payments made during the month that were expected to be paid in
September; approximately $24 million in payments are still outstanding.
Other payment categories that had significant negative year-to-date
variances were Hospitals, Administration, and ACA Expansion. The
negative variance for Hospitals ($184.4 million, 36.8%) was almost entirely