Idaho plans to reduce pay rates for Medicaid mental health services by up to 15% beginning Dec. 2, a move providers say will destabilize care and increase pressure on jails and hospitals, according to a Nov. 25 report from KIFI Local News 8.
The changes follow the Idaho Department of Health and Welfare’s decision to implement a 4% pay cut for all Medicaid medical providers. Magellan of Idaho — the company managing the state’s Medicaid mental health benefit — announced a broader cut ranging from 4% to 15% shortly afterward.
Providers warn the cuts could eliminate services for approximately 500 patients with severe mental illness, forcing them into emergency rooms or county jails. Bonneville County Sheriff Sam Hulse estimated hospitalization for one such patient cost $384,000 per year, and said the loss of services could overwhelm already strained rural facilities.
The Idaho Association of Community Providers estimated the change would shift “$150 million to $180 million in new costs” to hospitals, law enforcement, EMS and child-welfare agencies.
Four clinics filed a lawsuit seeking to halt the changes, and a public petition opposing the cuts has gathered more than 7,500 signatures, as of Nov. 25, according to the report.
