Looming federal cuts to Medicaid left one state senator sounding the alarm at a Tulsa Chamber of Commerce breakfast last week.
The coming federal budget is expected to include changes to the Medicaid funding formula. Currently, the federal government pays 90% of the Medicaid expansion that started during the pandemic, while Oklahoma pays 10%.
Perry Republican State Senator Chuck Hall said if the formula changes, Oklahoma’s budget would have to increase.
“If they go to 60-40 or 66-34, or whatever the proposal is, we will be constitutionally required to a new $600 million out of our budget right off the top to cover that until we can do some sort of constitutional adjustment,” Hall said. “You got to ask yourself, what’s the success ratio of taking away a benefit from Oklahomans?”
Twenty-five percent of Oklahomans receive Medicaid.
Oklahoma currently has more than $1.3 billion in “rainy day” funds to cover budgetary emergencies.
The state already has a $38 million budget shortfall in the coming fiscal year due in part to lower-than-expected revenue from income tax and sales and use tax.
The state legislature has until the end of May to send Gov. Kevin Stitt a budget.
