ODA’S MEDICAID ADVOCACY CONTINUES

The ODA has been very active in advocating for a substantial increase in the state’s funding of Ohio’s dental Medicaid program. We have engaged state leaders for the last two years as we prepared for passage of the state’s budget for fiscal years 2024 and 2025. These efforts are paying off.

The state budget that passed the Ohio General Assembly at the end of June included a dental Medicaid increase of $103,744,375 in FY 2024 and $207,588,571 in FY 2025. The budget bill then went to Governor Mike DeWine for his consideration.

When DeWine signed the state budget bill into law, he issued a series of line-item vetoes including vetoing the setting of Medicaid reimbursement rates (for dental care, eye care, ambulance transportation, FQHCs, etc.) in statute.

Here is the actual veto message that Governor DeWine issued related to the veto of the Medicaid increases:

Medicaid Rates in Statutes

This item codifies certain Medicaid program rates in statute. The Ohio Department of Medicaid (ODM), the Ohio Department of Developmental Disabilities (DODD), and the Ohio Department of Aging (AGE) are supportive of and will work to implement the proposed legislative rate increases. However, establishing rates in statute restricts the ability of the ODM, DODD, and AGE to appropriately manage the policies and costs of the Medicaid program in a way that benefits Ohio consumers and complies with federal regulations. Therefore, the veto of this item is in the public interest.

Despite the fact that the governor utilized a line-item veto on the dental Medicaid increase, we are encouraged by the message that accompanied the veto. Ohio governors traditionally veto bill language that would set Medicaid rates in statute. In this case, Governor DeWine has made clear that despite his veto of the legislative language, his intent is for the Ohio Department of Medicaid to implement the increases included in the state budget bill by the legislature.

On a recent webinar, ODM estimated that rates may go up on average as much as 93%. The ODA will work with ODM as it implements the dental Medicaid reimbursement increases though the rulemaking process to ensure the legislature’s intent is implemented as indicated in the governor’s veto message.

The state of Ohio has not enacted across-the-board reimbursement increases for Medicaid dental services in more than 20 years. During that time, the number of dental offices and clinics treating Medicaid patients has dwindled because reimbursements were not even covering the cost of overhead to provide the care. So, this increase is long overdue.

The new rates are expected to go into effect on Jan. 1, 2024. We will keep the ODA membership posted on all developments as this process continues into the fall.