Ohio approves nearly billion dollar payment after court ruled state shortchanged nursing homes

Ohio lawmakers approved an $875 million payment package Wednesday after the Ohio Supreme Court found the state used the wrong formula to calculate certain Medicaid reimbursements for nursing homes, shortchanging providers by hundreds of millions of dollars.

The funding, included in a budget correction bill that now heads to Republican Gov. Mike DeWine's desk, is intended to resolve a dispute over payments to skilled nursing facilities that dates back to the 2024-25 budget cycle.

"This is the most egregious thing we could have done to individuals that help our elderly live a quality, comfortable life," state Rep. Jean Schmidt said. "And today we are correcting that wrong."

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.

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