WEEK 11: WHAT THE SENATE BUDGET MEANS FOR HEALTH CARE IN GEORGIA

Last week, the Georgia Senate passed its version of the Fiscal Year 2027 (FY27) state budget. The FY27 budget funds the state from July 1, 2026, to June 30, 2027. The Senate made significant changes to the House’s version of the budget, including dramatically expanding waiver capacity for Georgians with intellectual and developmental disabilities (IDD), redistributing Medicaid provider rate increases, and scaling back several House investments in public health, workforce, and rural health infrastructure.

Last Wednesday, the House and Senate reached an agreement on the Amended Fiscal Year 2026 (AY26) state budget. The final version now goes to the Governor for his signature, after which the new spending plan will take effect.

Here is what this budget means for health care, human services, and the programs Georgians rely on:

On Friday, the Georgia Senate passed its version of the Amended Fiscal Year 2026 (AY26) state budget by a vote of 49-1. The Senate version takes a different approach to several major health-related investments than the House. Most notably, the Senate goes significantly further than the House in funding mental health infrastructure.

Here is what the Senate version means for health care, human services, and the programs Georgians rely on:

The Big Picture

The Senate budget’s largest, and arguably most significant, investment is the $409 million added for a new 300-bed state mental health hospital, the first built in Georgia since the 1960s. The Senate also increases Medicaid funding above House levels, reverses a proposed $25 million reduction to the state’s reinsurance program, and includes $20 million for graduate medical education at three facilities. At the same time, it scales back the House’s largest foster care investment and reduces the Housing Trust Fund. Statewide, the Senate reduces the one-time salary supplement for state employees from $2,000 (House) to $1,250.

The House is advancing legislation that would give Georgia’s Insurance Commissioner significantly stronger tools to hold insurance companies accountable when they break consumer protection laws. House Bill 1262 would increase fines for violations of mental health parity requirements, surprise billing protections, and other insurance consumer protection laws from $2,000/$5,000 to $10,000/$25,000 per violation.

For large insurance companies, current fines of $2,000 or $5,000 per violation may be too small to deter misconduct. Stronger enforcement tools help ensure that insurance companies actually follow existing consumer protection laws, including mental health parity requirements under HB 1013.

This week at a glance:

• HB 1262 is on the agenda for the House Health Insurance subcommittee tomorrow (Wed., 02/18).
• HB 1002, which would move Georgia’s foster children from Medicaid managed care to a Fee-for-Service Medicaid model, and HB 1192, which would increase budgetary oversight of the Department of Community Health (DCH) and the Department of Human Services, are scheduled to be heard in the House Health Committee tomorrow (Wed., 02/18).
• SB 428, which would allow DCH to apply for a Home and Community Based Services Medicaid waiver for Georgians suffering from severe mental illness, is on the agenda in Senate Health and Human Services tomorrow.

On February 5, the Georgia House of Representatives passed its version of the Amended Fiscal Year 2026 (AFY26) state budget. The amended budget adjusts current-year spending and reflects lawmakers’ priorities for any remaining state dollars.

Here is what the House version means for health care, human services, and the programs Georgians rely on:

The Big Picture

The House budget totals $42.3 billion, a significant increase over the original FY 2026 budget, thanks to $3.3 billion in one-time investments of surplus funds. Among its health-related priorities, the House makes notable investments in Georgia’s foster care system, the health care workforce pipeline, rural health access, and mental health infrastructure. The House largely aligns with the Governor on Medicaid and PeachCare funding, with a few targeted additions.