Late Monday evening, Governor Mike DeWine signed the $90.5 billion Fiscal Year 2026–2027 state operating budget (HB 96) and issued 67 line-item vetoes in the early hours of Tuesday morning—his most extensive use of veto power to date. Several of these vetoes carry significant implications for aging services providers across Ohio.
Of particular importance to LeadingAge Ohio members:
1. Senior Community Services Administration (Item #1)
Governor DeWine vetoed language that would have restricted the Ohio Department of Aging from using Senior Community Services funds for administrative costs. Per the veto statement, this action preserves the department’s ability to manage, oversee, and secure federal funding for essential programs supporting older adults across the state.
2. Medicaid Claims and Electronic Visit Verification (Item #39)
DeWine removed a provision that would have required Medicaid to pay claims even if electronic visit verification (EVV) data was not available at the time of payment. In his comments, the Governor emphasized that such a policy would conflict with federal guidelines and undermine efforts to combat fraud, waste, and abuse in Ohio’s Medicaid system.
3. Managed Care Enrollment Tied to Quality (Item #40)
A proposed requirement to randomly assign Medicaid recipients who do not choose a specific managed care plan—regardless of quality metrics—was vetoed. The Governor upheld the current system, which incentivizes quality by linking enrollment to managed care plan performance.
4. Dialysis Rate Add-on for Nursing Facilities (Item #41)
A provision establishing a Medicaid rate add-on for dialysis services delivered in nursing facilities was also vetoed. While expressing support for enhanced reimbursement, the administration cited concerns about setting rates in statute, which could restrict flexibility and conflict with federal Medicaid policy.
5. Increased Personal Needs Allowance (Item #42)
DeWine struck legislative-added language regarding the increase of the personal needs allowance for nursing home and intermediate care facility residents from $50 to $75 per month. The reasoning was that the language could be misinterpreted to retroactively apply the increase back to 2016. To ensure the increase can be implemented as intended, the administration will instruct the Ohio Department of Medicaid to implement the increase through the rule-making process.
LeadingAge Ohio is continuing to analyze the full impact of the signed budget and line-item vetoes. We will provide further updates and guidance to members as implementation unfolds. Members with questions or specific concerns are encouraged to contact our policy team - Susan Wallace at SWallace@leadingageohio.org and Eli Faes at EFaes@leadingageohio.org.
