DeLaney frustrated over refusal to explain Medicaid shortfall

Today (Dec. 17), the State Budget Committee met for the annual Medicaid, Economic and Revenue Forecasts meeting. This is the same annual meeting at which the Indiana Family and Social Services Administration announced that they underestimated the cost of Medicaid by nearly $1 billion in December of 2023. This shortfall was a significant factor in the implementation of the Medicaid waitlist that left tens of thousands of aged and disabled Hoosiers waiting for coverage. During today’s hearing, the state’s expert admitted that his firm received $1 million to conduct the inaccurate forecast.

“The state’s expert who delivered the forecast one year ago showing a billion-dollar mistake conceded that the forecast was ‘wrong’ by about $1 billion but denied that it was an ‘error,'" State Rep. Ed DeLaney (D-Indianapolis) said. "He also confirmed that the reforms that were announced to improve the forecast were known and available before the mistake occurred. After one year of effort, I got an answer but no explanation. 

“Hoosiers have now gone a full year without any explanation for how the FSSA made a $1 billion miscalculation. I got an amendment passed unanimously passed this spring that required a full report of what happened be presented before the Indiana General Assembly. 

“I reached out to FSSA about the status of this report and was informed that it has been addressed in the Medicaid Oversight Committee meeting on Aug. 27. However, that presentation gives virtually no explanation for what caused this colossal failure. 

“Apparently, the public will have to live without an explanation besides the obvious one. Someone didn’t know what they were doing.”