REXBURG — Idaho’s health officials are in a tough spot. They are unsure if cuts to critical mental health services by a Medicaid contractor will actually save money in the long run. These cuts came as Governor Brad Little ordered budget reductions across the state to address a projected $40.3 million shortfall for this fiscal year.
Idaho’s Medicaid Deputy Director, Sasha O’Connell, stated that if a court mandates a halt to the cuts affecting specialized mobile teams for severe mental illness, the agency may need to target other areas for budget cuts. These could include reductions in state-run psychiatric hospitals and payment rates for private behavioral health hospitals, which might lead those hospitals to withdraw from the Medicaid program altogether.
Critics, including mental health providers and law enforcement officials, warn that these cuts could jeopardize public safety. They worry that reducing mental health services will strain already vulnerable populations.
Sen. Julie VanOrden, who chairs the Senate Health and Welfare Committee, mentioned that discussions are underway to restore some funding through settlements from lawsuits against tobacco and opioid manufacturers. However, she admitted that viable funding options are limited.
Before the Idaho Legislature reconvenes for the 2026 session, a panel met with Medicaid providers to discuss the shift to managed care. Sen. Kevin Cook pushed for data showing that these cuts would produce long-term savings, but O’Connell revealed that such data does not exist. She cited evidence from other states, indicating those mental health services actually help reduce costs.
During a recent meeting, providers expressed concerns about the cuts. Ric Boyce, a mental health specialist, was cut off by VanOrden when he tried to discuss the impact of the funding reductions. This frustrated him because he believed the ongoing discussion about managed care needed to include the reality of current service cuts.
The day before Thanksgiving, providers notified patients that essential programs like Assertive Community Treatment would no longer be available. Boyce recounted the panic it created among clients, emphasizing that services are crucial for their stabilization. Idaho Sheriffs’ Association President Samuel Hulse also raised alarms, stating that the cuts further burden law enforcement, which often serves as a fallback for mental health crises.
According to O’Connell, about 200 people in Idaho rely on the Assertive Community Treatment program. Before the budget cuts, some behavioral health hospitals signaled that they would reduce Medicaid support if pay rates were lowered. The demand for drastic cuts stems from both the executive order and the strict budgetary framework under current laws.
As legislators head into a challenging period, concerns are mounting about the ongoing budget situation. VanOrden noted her anxiety not just for the current year but especially for the next, when the deficit could exceed half a billion dollars.
In an interconnected world, managing mental health services effectively affects everyone—from individual families to communities. Seeking evidence-based approaches and robust data can help ensure vulnerable individuals receive the support they need without risking public safety.
Source link
Idaho Medicaid cuts, mental health services, budget shortfall, Magellan Healthcare, public safety, Idaho Legislature, managed care
