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flag Indiana lawmakers prepare for potential $985M budget shortfall due to rising Medicaid costs.

flag Indiana lawmakers await December 17th forecasts for tax receipts and Medicaid needs to shape the 2026-2027 budget. flag Medicaid, the second-largest recipient of state funding, is a major concern due to rising costs. flag The state faces a potential $985 million shortfall, exacerbated by federal incentives that expanded Medicaid enrollment during the pandemic. flag Lawmakers may boost the state budget, cut services, reduce provider payments, or combat fraud to manage costs.

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