Indiana underestimated Medicaid cost by nearly $1 billion, new report says

By ISABELLA VOLMERT
Associated Press

INDIANAPOLIS (AP) — Indiana agencies say previous estimates of Medicaid expenses fell nearly $1 billion short of its now-predicted need. Word of the shortfall came Tuesday in a report presented to the Indiana state budget committee. Agency officials say unexpected demand of services in some categories including elderly care caused the forecasting error. The state has directed $271 million from its surplus to pay for expenses from this year. But lawmakers will need to address the nearly $713 million more needed through fiscal year 2025.