Idaho lawmakers are working to restore Medicaid-funded mental health programs cut in 2025, the Idaho Capital Sun reported March 24.
The Joint Finance-Appropriations Committee voted to approve use of settlement funds to reinstate services, including Assertive Community Treatment and peer support programs. The mental health programs are set to be restored next fiscal year, which starts in July, and could resume this fiscal year if funding is transferred internally.
The cuts, made by contractor Magellan after state-directed budget reductions, eliminated mobile treatment services for people with severe mental illness. In less than four months after the cuts, four patients died, compared to one patient in the 18 previous months, providers said.
The committee approved spending $4.6 million in tobacco settlement funds and $5.6 million in opioid settlement funds on reviving the mental health programs, with the federal government expected to contribute $20.5 million of the $30 million total cost.
About 200 people in Idaho rely on the Assertive Community Treatment program. State officials have said ACT services remain available, though providers argue current reimbursement does not support staffed mobile teams.
Magellan, which runs Idaho Medicaid mental health benefits, saw its pay rate reduced by the Idaho Department of Health and Welfare as part of budget cuts ordered by Gov. Brad Little.
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