Ohio lawmakers deliver $875 million Medicaid correction to fix formula error that shortchanged nursing homes

Published June 11, 2026 10:51am ET | Updated June 11, 2026 10:51am ET



The Ohio state legislature on Wednesday night approved an $875 million Medicaid payment aimed at correcting what the Ohio Supreme Court found was a yearslong formula error that left nursing homes underpaid by hundreds of millions of dollars. 

The funding was included in a budget correction measure approved by the Republican-controlled legislature this week and now heads to Gov. Mike DeWine (R) for his signature. The payment is intended to resolve litigation brought by nursing home operators who argued the state failed to properly calculate Medicaid reimbursement rates, resulting in facilities receiving less money than required under state law. 

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