Increasing the biennial funds contribution in lieu of state funds from the hospital safety net program.

HB 1466 increases the biennial funding amount used to replace state general fund payments for Medicaid hospital services, raising it from $452 million to $527 million for the 2025-2027 fiscal biennium, with a subsequent rise to $552 million per biennium starting in 2027. This funding directly affects hospitals and managed care organizations receiving Medicaid payments, as it replaces state general fund contributions while maintaining payment levels at 2022 rates (adjusted for enrollment). The bill specifies that $160 million annually must fund postacute hospital transitions and allocates $2 million for psychiatry residency programs and $4.1 million for family medicine residency slots at the University of Washington. It also ensures funds are used exclusively for Medicaid hospital services, administrative costs, and federal compliance, with no new programs created.