Ohio lawmakers approved an $875 million payment package Wednesday after the Ohio Supreme Court found the state used the wrong formula to calculate certain Medicaid reimbursements for nursing homes, shortchanging providers by hundreds of millions of dollars.The funding, included in a budget correction bill that now heads to Republican Gov.Mike DeWine's desk, is intended to resolve a dispute over payments to skilled nursing facilities that dates back to the 2024-25 budget cycle."This is the most egregious thing we could have done to individuals that help our elderly live a quality, comfortable life," state Rep.
Jean Schmidt said."And today we are correcting that wrong."In a September 2025 ruling, the Ohio Supreme Court said state officials used the wrong methodology when calculating certain Medicaid quality payments, resulting in hundreds of millions of dollars in underpayments to nursing homes.
The court ordered the state to recalculate what providers were owed.HOUSE GOP LAUNCHES NEW TASK FORCE, PROBES ALLEGED $250B MEDICAID FRAUD IN OHIOOhio Gov.Mike DeWine poses for a group photo with the Ohio Congressional delegation after the ceremonial swearing-in of Sen.
Jon Husted in the Old Senate Chamber at the Capitol on Jan.21, 2025.
(Bill Clark/CQ-Roll Call, Inc via Getty Images)Lawmakers' solution carries a larger price tag than the amount identified in the ruling.The package sets aside $875 million, including roughly $310 million from the state and $565 million in federal funding, to settle the issue.Ohio pays nursing homes a daily rate for Medicaid residents and provides additional payments to facilities that meet certain quality benchmarks.
Nursing home operators argued the state failed to properly account for the medical complexity of residents when calculating those payments, reducing reimbursement for facilities caring for some of the sickest patients.Lawmakers later revised the formula, but the state remained responsible for payments tied to earlier budget cy...