Transcript Highlights:

• So are funding system has to change.
• We create a monthly system, a monthly payment system.
• And so what we propose is a front loaded system monthly Matt front load it so that the first payment
• They re CRA monthly payment, rather, they receive frontloaded monthly payments and that money goes into
• I do have a question when it comes to the monthly payments, if in a while the monthly payments or be

Transcript Highlights:

• TRS and the teachers retirement system TRS and the reality<00:04:22.759><c> that</c><00:04:22.880><c
• </c><00:05:14.400><c> for</c> budget Cycles projected payments for budget Cycles projected payments for
• we need to provide clear guidance to school systems and TRS.
• beyond the expected two billion in annual payments for unfunded liability.
• c><00:16:20.399><c> payments</c><00:16:20.959><c> for</c><00:16:21.240><c> unfunded</c> in annual payments

Summary: The Senate State and Local Government Committee met and first took up Senate Bill 193, described as a simple measure to restore a wallet card for jailers to carry when outside the jail. The chair noted the fiscal impact was essentially zero, there were no questions, and the committee voted to pass the bill 9-0. The committee then heard Senate Bill 9, a proposal focused on the Teachers’ Retirement System (TRS). The sponsor argued TRS remains underfunded despite large state contributions, cited rising unfunded liability and negative cash flow, and said the bill is intended to standardize and limit what sick leave, personal leave, and annual leave can count toward retirement calculations. The bill would generally cap TRS retirement credit at 10 sick days and 2 personal days per year, prevent annual leave from being rolled into sick leave, require more uniform reporting and oversight from participating districts and agencies, and shift costs to districts that offer benefits beyond TRS limits. The sponsor also said the bill would add 30 maternity leave days, allow voluntary supplemental contributions for Tier Four teachers, and include a floor amendment directing the state auditor to audit TRS and report on agency leave policies. During the presentation, the sponsor emphasized fairness, transparency, and accountability, and used a hypothetical high-salary administrator to illustrate how leave payouts can increase retirement benefits and create additional unfunded liability. Senator Mills thanked the sponsor and said members had been working to understand the issue, but no committee action on Senate Bill 9 was completed in the portion provided.

Transcript Highlights:

• BNPL is typically offered during a customer payment at the point of payment during a transaction and
• When a consumer chooses BNPL, they're required to set up an automatic payment, electronic payment option
• Again, there's an automatic payment schedule that's set up at the time of the transaction, so those payments
• So when you are at the point of payment, when you choose your payment option, and what I mean by that
• Payments are typically automatic.

Summary: The Consumer Protection and Business Committee held a work session on buy now, pay later (BNPL) transactions, focusing on how the products work, how they are used in Washington, and whether existing state law adequately protects consumers. Department of Financial Institutions staff described BNPL as short-term, usually no-interest installment financing offered at checkout, often with automatic payments, late fees, and varying credit-reporting practices. Members asked how BNPL compares with payday lending and earned wage access, whether it is effectively a loan or credit product, and whether Washington law already covers it. DFI explained that some BNPL structures may fall into a legal gray area under the Retail Installment Sales of Goods and Services Act because pay-in-four products may not meet the statute’s “more than four installments” language, while other structures may be covered; they also noted the Attorney General can enforce the act. DFI and committee members discussed consumer risks such as overextension, automatic debits, and lack of standardized disclosures, and DFI said it would follow up with additional data on defaults and related issues. Molly Gallagher of the Poverty Action Network and Nadine Chabrier of the Center for Responsible Lending argued that BNPL can help consumers but also poses significant risks, especially for lower-income consumers and consumers of color who already carry debt or use other alternative financial products. They said BNPL use has grown rapidly, often involves multiple simultaneous loans across providers, and can lead to overdrafts, late fees, and difficulty tracking obligations because payments are spread across different schedules. They emphasized concerns about weak disclosures, limited dispute protections, automatic payment structures, credit reporting inconsistencies, consumer overextension, and data privacy/dark-pattern marketing. They also described federal retrenchment, including the CFPB’s withdrawal of an interpretive rule that would have treated BNPL like a digital credit card, and pointed to state responses in places like New York, California, and Maryland. Committee members signaled interest in possible Washington legislation and stronger state oversight. Retail and business witnesses offered a more favorable view of BNPL as a cash-flow and sales tool. A Washington Retail Association representative described BNPL as an evolution of layaway and credit-card-style installment purchasing, noting that merchants receive payment up front minus fees while consumers get goods or services immediately and repay over time. A representative from a business using deferred-payment financing said the tool helps customers obtain equipment and helps the business manage inventory and cash flow, while NFIB said small businesses also use BNPL to bridge expenses and avoid higher-interest credit card debt. Members asked about merchant fees, consumer education, and whether BNPL is being used for impulse purchases or essential expenses like rent, car repairs, medical care, and travel. The chair concluded by saying the committee intends to pursue regulatory language and continue working with stakeholders, while also hearing from retailers to avoid eliminating legitimate financing tools.

Transcript Highlights:

• two extra payments each year.
• I was just thinking, as many of you know, our state has gone from 24 payments a year to 26 payments a
• If we're using an accrual system or even a modified accrual system, that would be appropriate.
• If we're using an accrual system or even a modified accrual system, that would be appropriate.
• Dover Municipal Water and Sewer System.

Committee: All LEGISLATIVE JOINT AUDITING-COUNTIES AND MUNICIPALITIES

Transcript Highlights:

• Missouri civil justice system is built on compensatory principles.
• I think way more adverse on that whole system than I.
• I think way more adverse on that whole system than I.
• What the purpose of this arbitration system was meant to identify is to satisfy the initial payment from
• She gets a $35,000 payment from the other company.

Committees: House Insurance , House Insurance and Banking

Transcript Highlights:

• I think you're way more adverse on that whole system than I am.
• I think way more adverse on that whole system than I.
• What this arbitration system was meant to do is satisfy the initial payment from the at-fault party,
• She gets a $35,000 payment from the other company.
• The very first part you started with was on voluntary payments.

Committee: House Insurance and Banking

Summary: The Insurance Committee first established a quorum and then went into executive session, where it voted House Bill 1615 and House Bill 2071 “do pass” with 11 ayes and no opposition on each bill, with one member present on the roll call. After returning to public session, the committee opened a hearing on House Bill 1647, sponsored by Representative Overcast, which was described as a fairness measure intended to prevent double recovery when insurance payments have already satisfied part of a claim. The sponsor and supporters said the bill was aimed at property damage claims and intercompany arbitration between insurers, though several members questioned whether the bill’s language was actually limited to property damage or instead reached broader collateral source issues and evidence rules. Committee members, especially Representatives Butts, Zimmerman, and Castile, pressed the sponsor on how the bill would work in practice, whether it would reduce a plaintiff’s recovery or instead affect insurer subrogation rights, and why arbitration was being addressed in an evidentiary statute. Supporters from the Missouri Insurance Coalition and other industry groups said the bill would clarify offset rules, preserve voluntary insurer-to-insurer arbitration, and prevent inconsistent court treatment of prior payments. Opponents, including attorney Blake Heath, argued the bill was drafted too broadly, did not stay confined to property damage, and was placed in the wrong statutory section because these issues are usually handled through insurer subrogation rather than in a lawsuit by the injured party. Additional support came from the Missouri State Medical Association, Associated Industries of Missouri, and the National Association of Mutual Insurance Companies, though some supporters also acknowledged the bill might need narrowing if the intent was property damage only. No vote was taken on House Bill 1647 during the hearing, and the committee adjourned after testimony concluded.

Transcript Highlights:

• </c><00:04:21.720><c> program</c> compensation support payment program compensation support payment program
• payment payment um<00:07:49.440><c> I</c><00:07:49.560><c> can</c><00:07:49.759><c> give</c><00:07:49.919
• payment payment if<00:08:00.720><c> the</c><00:08:00.960><c> provider</c><00:08:01.759><c> is</c><00
• <00:49:03.200><c> in</c> payments in payments in 2024<00:49:04.960><c> and</c><00:49:05.119><c> there
• work for us as well data and systems work for us as well data and systems<01:11:10.960><c> so</c><01

Committee: House Fraud Prevention and State Agency Oversight Policy

Transcript Highlights:

• And if we had had a system like that in 2020, And if we had had a system like that in 2020, 21 and 21
• So it expands it to include Proposition 98 settle-up payments, budgetary borrowing, and payments toward
• The other allowed debt payments also would remain.
• The relative savings associated with making those extra payments through the debt payments would really
• The relative savings associated with making those extra payments through the debt payments would really

Summary: The Senate Committee on Budget and Fiscal Review held an informational hearing on ACA 20, the Save for California’s Future Act, and took no votes. The chair described the measure as a way to strengthen the state’s Rainy Day Fund by increasing reserves during strong revenue years and helping pay down long-term obligations. The vice chair said he preferred a broader spending rule tied to a rolling average of revenues, rather than the proposal’s reserve-focused approach. The Legislative Analyst’s Office explained how Proposition 2 currently requires deposits into the Budget Stabilization Account and debt payments when revenues are strong, and how ACA 20 would change those rules by increasing required reserve deposits, raising the BSA target from 10% to 20% of General Fund revenues, creating a “super excess capital gains” deposit requirement, extending debt-payment requirements through 2040, and expanding eligible debt uses to include Proposition 98 settle-up, budgetary borrowing, and federal unemployment insurance debt. The Department of Finance said the administration supports the measure and believes it improves Proposition 2. Members asked about the Gann limit, whether the measure would allow more spending or simply change how deposits are counted, the impact on infrastructure and other programs, the size of the UI debt, and how the proposal would affect future budget flexibility. Several senators supported the goal of saving more in good years and using reserves to avoid painful cuts in downturns, while others questioned whether the proposal was sufficiently simple or whether a larger structural spending rule would be better. Public comment largely supported the measure, with one former legislative staffer arguing it follows earlier reserve reforms and helps address the state’s UI debt. The chair closed by noting the committee would not act that day and that the measure would be considered on the Senate floor the next day.

Transcript Highlights:

• </c> systems and other technical information. systems and other technical information.
• </c> finish the system would actually be. finish the system would actually be.
• for overdue payments.
• The report states that KSP should review its payment processes system and establish necessary internal
• The report states that KSP should review its payment processes system and establish necessary internal

Summary: The committee heard a staff report on Kentucky’s statewide emergency responder voice system (SERVS), a multi-phase project intended to improve interoperable radio communications for first responders. Staff said Kentucky State Police did not appear to have violated statutes or regulations, but the project lacked an overall master plan, clear milestones, and consistent documentation, which contributed to delays, spending issues, and deployment problems. The report recommended updating the Kentucky Field Operations Guide to reflect SERVS and noted that the project has been funded in phases since 2018, with appropriations totaling roughly $216 million across 2018, 2020, 2022, and 2024, while about $109 million had been spent by the end of fiscal year 2025. The report raised concerns about project sequencing and oversight. Staff said most spending was concentrated in special mobile equipment, with Motorola accounting for about two-thirds of all SERVS expenditures and the top four vendors making up 81 percent of spending. They also said a sample of Motorola payments suggested possible late payments, though they could not confirm whether interest was paid. Staff criticized the use of master agreements for a project of this size, the lack of a centralized ledger, and the absence of a documented timeline or risk mitigation plan. They recommended stronger procurement and planning requirements, including possible legislative changes requiring approved master plans for large capital projects and additional funding conditions tied to SERVS master agreements. Land acquisition and deployment progress were identified as major bottlenecks, especially in Eastern Kentucky. Staff said the project began in western Kentucky using existing tower sites, but the remaining work is concentrated in harder-to-acquire areas, with more than 95 percent of new towers still incomplete. They said the Division of Real Properties did not begin formal contract work on acquisition until October 2024, despite earlier coordination, and recommended earlier consultation on future projects. Staff also noted that the Kentucky Wireless Interoperability Executive Committee had not been active in oversight, and survey results showed limited awareness and involvement among first responders. Committee members agreed that the lack of an initial implementation plan and the continuing need for funding reflected broader planning problems, and they discussed the need for a clearer end-to-end game plan rather than continuing to fund the project without a defined completion path.

Transcript Highlights:

• Um modernizing payments. We've had side. Um modernizing payments.
• </c><01:46:15.840><c> system</c> yield on a on a federal payment system yield on a on a federal payment
• We have built a system. We with this. We have built a system.
• When we put as part of our disclosure that one of our use cases was going to be as a payment system and
• </c> cases was going to be as a payment cases was going to be as a payment system<01:51:22.960><c> and

Summary: The commission met to review stable tokens, real-world asset tokenization, and blockchain-based trust, approved the agenda and December 12 minutes, and heard a presentation from Anchorage Digital after postponing a planned Bitco presentation because of its IPO quiet period. Anchorage’s Melinda Delos, Joe Mioli, and Kevin Wasaki introduced the firm, describing it as a global digital assets platform and the first crypto-native institution in the U.S. to receive a federal banking charter. They said their approach emphasizes security, regulated custody and trading services, and responsible innovation for institutional clients, banks, states, and sovereigns. The presentation focused on post-Genius Act momentum in the stablecoin market. Anchorage said the law provided regulatory clarity and helped spur activity with major clients, including Athena, Tether, and Western Union. The speakers highlighted Western Union’s planned stablecoin as especially significant because it reflects adoption by a long-established traditional payments company, and they said the project illustrates how stablecoins can support programmable, real-time, interoperable payments. They also noted that Anchorage is providing issuance infrastructure for the Western Union project. The commission and presenters also discussed government uses of tokenized assets, including reserve legislation, digital assets for tax collection and fees, and a Marshall Islands initiative to use a tokenized sovereign bond for direct citizen payments. In response to a question, Anchorage said it would follow up on which states are using digital assets for revenue collection, mentioning Louisiana and Pennsylvania as examples. The banking discussion centered on remittances, instant payments, and interbank settlement, with Anchorage arguing that stablecoins can reduce settlement time, fees, and foreign exchange risk while improving traceability and auditability.

Transcript Highlights:

• So that's why that payment.
• So those payments are well above.
• For grandfathered payments...
• the Medicare payment rate.
• We will have system costs.

Committee: House Federal Funding Stabilization Subcommittee

Transcript Highlights:

• Similarly, state-directed payments—new ones are really not allowed that exceed Medicare payments.
• So the state-directed payments are starting in 2028.
• That doesn't go into our payment error rate.
• ACEs is one of those 34 systems.
• Aces is one of those 34 systems.

Committee: Senate Ways & Means

Summary: The committee held a work session to review how H.R. 1 would affect Washington’s Medicaid, long-term care, developmental disabilities, and food assistance programs, with a focus on state budget impacts and implementation challenges. Staff and agency officials explained Washington’s Medicaid financing, eligibility categories, caseload trends, and the role of managed care, then outlined H.R. 1 provisions affecting the expansion population, including work requirements, six-month redeterminations, changes to immigrant eligibility, reduced retroactive coverage, cost sharing, provider tax and state-directed payment limits, and penalties tied to eligibility error rates. Officials also described the need for major IT and systems changes across agencies, including the state’s existing CMS corrective action plan for automated renewals and the difficulty of implementing new federal requirements before guidance is finalized. Health Care Authority and DSHS witnesses said the expansion population would be most affected, with potential coverage losses for about 620,000 Apple Health expansion enrollees and additional impacts for some lawfully present immigrants and a smaller number of long-term care and developmental disability clients. They said many current enrollees already work, but the new requirements would create administrative barriers and could increase uninsured rates, emergency room use, and uncompensated care. Agency leaders also discussed the immediate prohibition on Medicaid funding for Planned Parenthood services, with the state planning to backfill about $11 million so clients can continue care. Members asked about FMAP comparisons, work requirement experiences in other states, waiver possibilities, definitions of exemptions, and whether the changes would affect COFA communities, rural areas, and behavioral health services. The committee then heard a separate presentation on H.R. 1’s food assistance provisions. DSHS said the bill would broaden SNAP work requirements, end certain immigrant eligibility for federal SNAP, eliminate SNAP-Ed, increase the state administrative match from 50% to 75%, and create a future state cost share for SNAP benefits based on payment error rates. Officials estimated a four-year fiscal impact of about $750 million, with significant costs tied to the immigrant eligibility shift, administrative match changes, and possible benefit cost sharing. DSHS also described the state’s integrated eligibility system and the large amount of work needed to update it across multiple quarterly releases while coordinating with other agencies. No votes or formal actions were taken.

Transcript Highlights:

• No, we're saying an average across the state system.
• Lastly, it directs AHCA to engage a contractor to study nursing home quality incentive payment systems
• Lastly, it directs AHCA to engage a contractor to study nursing home quality incentive payment systems
• And the system weren't great for decades.
• It aligns the scholarship payment installments from quarterly to monthly, as I said, and aligns the payments

Committee: Senate Appropriations

Summary: The Appropriations Committee heard presentations on the Senate’s proposed 2025-2026 budget, SPB 25-200, totaling $117.4 billion. Chair Hooper and committee chairs highlighted major spending priorities including a 4% raise for state employees, continued health insurance contributions, investments in water quality, transportation, education infrastructure, and workforce development, along with reductions tied to long-vacant positions. Education funding was a major focus, with increases for K-12 public schools and scholarships, higher education workforce programs, nursing initiatives, tutoring, and university performance funding. Health and human services, criminal and civil justice, transportation/economic development, and agriculture/environment budgets were also outlined, including Medicaid, mental health, corrections staffing, affordable housing, beach restoration, citrus recovery, and water projects. Members then questioned several budget choices, especially K-12 funding. Senators Polsky and Smith raised concerns that the Senate’s AP and dual enrollment funding changes could disadvantage public schools, while Burgess argued the budget preserves the money in the FEFP and gives districts more flexibility rather than reducing support. Questions also addressed voucher availability, school stabilization funding, and the My Safe Florida Home program. The committee adopted 171 consent amendments and three late-file amendments, then approved SPB 2500 as a committee bill. It also favorably reported implementing and conforming bills for state employees, retirement, natural resources, judgeships, K-12 education, higher education, and health and human services, along with SB 7022 on Florida Retirement System contribution rates and elected-officer DROP options, CS/SB 1320 on the Resilient Florida Trust Fund, SB 7014 ending the Mediation and Arbitration Trust Fund, SB 7028 on cancer research, CS/CS/SB 170 on nursing home quality and oversight, CS/SB 168 on mental health diversion and behavioral health data, SB 114 creating an insurance and risk management research center at FSU, and SB 180 on emergency preparedness and post-storm recovery. Most bills were reported favorably with little or no opposition, though SB 180 drew discussion about local-government authority after storms and the need to balance recovery speed with local safety and planning concerns.

Transcript Highlights:

• We modeled various scenarios to evaluate the feasibility of transitioning to a new payment system.
• We're going to hear DD Payment System Steering Committee.
• We're going to hear DD Payment System Steering Committee. Reimbursement Project on Development Act.
• This afternoon, I'm going to give you a brief overview of our DD Payment System Steering Committee.
• Well, and I think the outlier was quite controversial when we started the new payment system, but the

Summary: The committee first heard an update on North Dakota’s Interagency Council on Homelessness and Continuum of Care funding. Jennifer Henderson of the North Dakota Housing Finance Agency reported that homelessness remains driven by tight housing markets, low incomes, rising rents, and barriers to rental assistance, public benefits, and disability determinations. She said the state’s one-time North Dakota Homeless Grant is serving all regions but reaches far fewer households than the former Rent Help program, and that aging homelessness, shelter staffing shortages, and limited affordable units are growing concerns. Members discussed the need for more housing supply, better coordination with Health and Human Services, landlord engagement, reentry housing, and possible continued one-time funding for the $10 million Homeless Grant and $25 million Housing Incentive Fund. Henderson also warned that federal Continuum of Care funding is uncertain, with HUD expected to issue a new notice June 1 and possible shifts away from permanent supportive housing toward transitional housing and other models. The committee then took testimony on accessibility of government services for people who are blind, visually impaired, deaf, or hard of hearing. Paul Olson of North Dakota Vision Services School for the Blind described the school’s services for infants, children, and adults, including screenings, mobility training, assistive technology, and outreach across the state. He said the agency works closely with Vocational Rehabilitation and is also involved in improving website and document accessibility, especially for PDF materials. Public testimony highlighted barriers such as inaccessible CAPTCHA systems, online forms, driver’s license requirements on job applications, and limited transportation in rural areas. A deaf resident urged broader use of video remote interpreting and video relay services, along with training so people know how to use them effectively. Finally, Kay Larson presented the final report on the child care provider licensing study. The report recommended streamlining North Dakota’s child care licensing structure into three provider types plus a preschool designation, while preserving health and safety standards and maintaining eligibility for child care assistance. The committee discussed simplifying training and qualification rules, revising ratio and group-size requirements, and adjusting age bands for infants and toddlers. The report also noted that some changes would require statutory amendments and later administrative rule changes, with a transition period likely extending through 2029. No formal votes were taken in the transcript, but the committee accepted the updates and scheduled follow-up presentations for a later meeting.

Transcript Highlights:

• system, through the wholesalers that he partnered with.
• We were in the Centria portal, and that's our licensing system.
• 40-hour work week manually processing credit card payments.
• As for the amount of that incentive payment, I...
• So, as a result, reducing the department's payment... ...the highest match rate of 15%.

Committee: House House Health & Human Services Committee of Reference

Transcript Highlights:

• We modeled various scenarios to evaluate the feasibility of transitioning to a new payment system, considering
• The DD system does that.
• We're going to hear DD Payment System Steering Committee Reimbursement Project on Development Act.
• This afternoon, I'm going to give you a brief overview of our DD Payment System Steering Committee.
• Well, and I think the outlier was quite controversial when we started the new payment system, but the

Committees: Joint Human Services , Joint Human Services Committee

Transcript Highlights:

• We are what is known as a prospective payment system, or a PPS hospital.
• We are what is known as a prospective payment system, or a PPS hospital.
• to hospitals, quarterly supplemental payments through the managed care system or prepaid medical assistance
• to hospitals, quarterly supplemental payments through the managed care system or prepaid medical assistance
• to hospitals, quarterly supplemental payments through the managed care system or prepaid medical assistance

Committee: House Health Finance and Policy

Transcript Highlights:

• I'd like to see how the health of the systems without those over-and-above payments is.
• I'd like to see how the health of the systems without those over-and-above payments is.
• So, like any retirement system that's not fully funded, we're requesting an additional payment over and
• </c> Is it the system school systems or is it Is it the system school systems or is it the<01:39:08.000
• . payments. payments.

Summary: The meeting opened with a quorum call, the Pledge of Allegiance, a prayer, and approval of the prior meeting minutes. The first presentation was from Bo Craycraft of the Judicial Form Retirement System, who gave an update on investment performance, asset allocation, cash flow, and projected employer costs. He reported strong fiscal year 2025 investment results, with both the legislative and judicial retirement plans outperforming their actuarial assumed rates of return and benchmarks, driven largely by U.S. equity performance. He also noted the plans remained near their target asset allocation and continued to experience negative cash flow, though he said that was manageable in context of strong asset growth. Craycraft then discussed a recent experience study and actuarial assumption changes, especially a revised salary growth assumption and a higher cash balance interest credit rate. He said these changes increased projected employer costs, with contributions rising from about $700,000 to a projected $2 million in later years, though he expected the eventual 2025 valuation and investment gains to reduce that estimate. Members asked about mortality assumptions, the impact of the experience study on liabilities, and the sharp increase in the judicial plan’s projected employer cost. Craycraft explained that the increase was driven mainly by the updated assumptions and that no other major plan changes were involved. At the chair’s request, Craycraft also addressed the recent rise in Medicare Advantage premiums for the plan’s health coverage, saying the 2025 increase was largely tied to Part D changes and the Inflation Reduction Act and had been about 45%, but that future growth was expected to be under 5%. After his presentation, the committee moved to the Kentucky Public Pensions Authority update, where the next speaker began by saying the funds had exceeded actuarial assumed returns for the fiscal year.

Transcript Highlights:

• enter the system.
• Tier two are your per-child, per-month payments.
• The payment for these would be a standard equal payment monthly. CBCs can count on this coming in.
• Tier 2 is the per-child, per-month payment.
• management system.

Summary: The Human Services Subcommittee met with a quorum present and took up a presentation from the Department of Children and Families on HB 7089, which revises how Florida’s community-based care (CBC) lead agencies for child welfare are funded. Representative McFarland described the bill’s background, arguing that the prior formula relied too heavily on outdated, static factors and produced inequities among CBCs. She emphasized that the new approach is intended to provide a more stable, transparent, and statute-based funding method that better supports prevention, case management, and family services while reducing year-to-year political uncertainty. DCF Chief of Staff Casey Penn explained that HB 7089 required an actuarially sound, reimbursement-based formula developed with CBC and provider input. The new model uses a cost-based structure with three tiers: Tier 1 for operational and administrative costs, Tier 2 for per-child/per-month service costs, and a possible Tier 3 incentive component for performance measures if the Legislature chooses to fund it. The model includes regional growth factors, inflation adjustments, a 2% risk corridor for Tier 2, a hold-harmless provision for agencies that would otherwise receive less than prior funding, and the ability for CBCs to retain some state general revenue savings. DCF said the model produced a total budget need of about $1.392 billion, roughly $28.6 million above the prior year after offsets, and that the department is also updating its child welfare case management system to improve data quality and future modeling. Members asked about whether prevention spending is captured, how Tier 3 incentives would work and how much they might cost, how the formula accounts for insurance, hurricanes, child acuity, and staffing costs, and whether CBC executives’ compensation is capped. DCF said prevention is included in the model but is not yet separately broken out due to data limitations, Tier 3 is optional and not yet costed, and the formula can incorporate additional growth factors if needed. On executive pay, DCF explained that compensation is limited by statute for CBC contracts, but multiple contracts and non-state funding sources can affect total compensation; staff later clarified that CBC CEOs with multiple contracts had been reviewed for compliance. The meeting ended after questions, and Representative Miller moved to adjourn; the subcommittee adjourned without any vote on the bill.

Transcript Highlights:

• , which is our Medicaid provider payment system, is already complete.
• I will just mention we already connect to these systems today.
• that exceed the Medicare payment levels.
• We should build a system around family. Next slide, please.
• care, instead of separate payments for each stage of care.

Summary: The Senate Health and Long-Term Care Committee met on July 30, 2026, to hear two main briefings. The first, from the Health Care Authority, focused on implementation of federal H.R. 1 Medicaid changes and Washington’s rural health transformation funding. HCA said the state is preparing for major eligibility changes, including the October 1 loss of Medicaid coverage for about 14,000 lawfully present non-citizens and January 1, 2027 work requirements, six-month renewals, and reduced retroactive coverage for roughly 600,000 Medicaid expansion adults. Officials described outreach efforts, new automated verification systems, a verification hub, and plans to use available data sources to reduce manual paperwork, while noting that about one-third of the affected population may still need manual processing. They also said H.R. 1 will limit state-directed payments over time, with an estimated long-term impact of up to $1.5 billion in hospital reimbursements. On rural health transformation, HCA said it is moving quickly to obligate its $181 million federal award through contracts and competitive grants for rural hospitals, workforce, behavioral health, technology, and tribal and community partners. Committee members asked about the impact on rural providers, community service as a work-requirement pathway, emergency Medicaid, tribal and federal reimbursement issues, and whether the state would submit comments on the federal work-requirement rule. HCA said it would file comments, that emergency Medicaid coverage for certain services remains available, and that it is working with tribes and other agencies to avoid erroneous terminations and to move eligible people into other coverage where possible. Members also raised concerns about the administrative burden on families and providers and the need for congressional attention on issues such as TRICARE reimbursement. The second briefing addressed maternal health and the Department of Health’s Maternal Mortality Review Panel report. DOH said maternal mortality in Washington increased for the first time in the report series, but most pregnancy-related deaths remain preventable. Nearly half were linked to behavioral health conditions, especially overdose deaths, with suicide, cardiovascular disease, and COVID-19 also significant causes; most deaths occurred postpartum rather than during delivery. The report found higher mortality rates among American Indian and Alaska Native, Black, Native Hawaiian, Pacific Islander, multiracial, rural, and Medicaid-covered populations, and identified lack of access to care, financial hardship, housing instability, discrimination, bias, and systemic inequities as major contributors. DOH highlighted existing state actions such as one-year postpartum coverage, doula reimbursement, inpatient substance use treatment coverage for birthing people, and vaccine coverage requirements, and offered 12 legislative recommendations focused on affordable and high-quality care, basic needs and community supports, and equitable, culturally responsive services. Presenters from the Suquamish Tribe and Kitsap OBGYN described how the tribe acquired and stabilized a threatened OB-GYN practice to preserve regional access amid provider shortages and hospital service losses. They said rural obstetric care is difficult to sustain because of thin margins, workforce shortages, long travel distances, and higher-risk patients, and emphasized that tribal health systems can offer stronger reimbursement and integrated family-centered care. The Foundation for Healthcare Quality and the Bree Collaborative then outlined statewide maternity-care quality efforts, including work on perinatal behavioral health, care coordination, postpartum screening, doula support, and better-aligned payment models. They said Washington has strengths in innovation but still needs more OB-GYN capacity, better transitions of care, and more culturally responsive, trauma-informed maternal and Native health services.