Ohio lawmakers approved an $875 million payment package to resolve a dispute over Medicaid reimbursements for nursing homes. The funding, included in a budget correction bill, is intended to resolve a dispute over payments to skilled nursing facilities that dates back to the 2024-25 budget cycle.

Background

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.

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.

The legislation requires providers that accept the money to waive future legal claims related to the disputed formula. Scott D. Wiley, CEO of the Ohio Health Care Association, urged Governor Mike DeWine to sign the bill.

Original reporting: Fox News (HLL/CB) — read the source article.