Nearly 320,000 Rhode Islanders rely on Medicaid — one out of every three people. Medicaid is the biggest line item in the state budget.
One-third of Rhode Island’s spending every year goes to pay for the program, which is a safety net for low-income individuals and families. More than half of those costs are paid by the federal government.
The program has been bedeviled by problems.
The computer system that helps manage the program, RIBridges, is currently down due to a cybersecurity threat. That’s made it harder for individuals to access their benefits.
Participants and providers alike have long complained that obtaining coverage is not always easy because there’s too much red tape.
Meanwhile, costs have been skyrocketing.
The state relies on private health care companies to manage the program. Currently three companies share the contract: Neighborhood Health Plan of Rhode Island, United Healthcare, and Tufts Health Plan.
The process of awarding a new $15.5 billion contract for the next 5 years — which began 3 years ago — has been messy to say the least. State officials have stopped and restarted the bidding process multiple times.
As of today, they’re back to square one again.
State officials say the delay, this time, is due to the changeover in Washington.
President Trump and his allies have indicated they see Medicaid as a potential source of cuts. How much and how deep remains to be seen.
Rhode Island officials say the state’s new Medicaid contract will need to align with any new changes from Washington, whatever they may be.
State lawmakers may also face tough choices, if the federal government pushes more of the costs onto them.
In the meantime, Rhode Island is extending the existing contract another year. Instead of starting this June, the new 5-year contract is now scheduled to take effect at the end of June, 2026.
That’s assuming the process runs more smoothly than it has so far.
