State funding for Mississippi Medicaid tops $1 billion
State Rep. Clay Deweese describes the Mississippi Division of Medicaid budget on the floor of the House on Sunday, March 29, 2026. (Photo by Jeremy Pittari | Magnolia Tribune)
- Lawmakers agreed to a 16% increase in state funding for the social welfare healthcare program. The Division of Medicaid had requested an increase of $390 million.
Mississippi lawmakers have approved the conference report for the state’s Medicaid appropriation, with state funding for the social welfare healthcare program.
The total budget for the Mississippi Division of Medicaid came in at $8.5 billion, of which $1.026 billion will be in state funding, according to State Rep. Clay Deweese (R). The appropriation was approved as part of the passage of the conference report for HB 1912.
Deweese told the House on Sunday that the funding reflects an increase of state funding of just over $200 million above the Fiscal Year 2025 recommended funding level and over $165 million above the Fiscal Year 2026 estimated funding.
The 16% increase came in below the Division of Medicaid’s requested increase of $390 million.
Notably, the division told lawmakers in hearings this session that enrollment in Medicaid is down, reportedly at the lowest level in nearly a decade. The agency’s January report to the Legislative Budget Office showed 644,869 Medicaid recipients on the rolls in Mississippi, down 11,917 from the prior year.
Of the agreed upon increase this session, $100 million is set aside for the operational fund and $1.6 million is intended for vacancy funding. Another $100 million is directed to capital expenses, Deweese described.
“And also $20 million in general funds to replace the healthcare expendable funds that were no longer available,” Deweese said.
The total funding for the state agency came in above the legislative budget request by $201 million.
Prior to passage of the conference report in the House, State Rep. Omeria Scott (D) expressed her discontent with the Medicaid budget increase and unfunded liability in the state’s retirement system being used as an excuse to only increase teacher pay by $2,000. She said lawmakers knew there would be an increase in Medicaid prior to putting forth their teacher pay proposals this session. Scott reminded the House that additional funding will be needed again next year.
Both chambers approved the conference report on Sunday, sending it on to the governor’s desk.
The House passed the measure by a vote of 115 to 2, while the Senate unanimously adopted the conference report.
