Idaho Medicaid’s mental health contractor plans to end peer support and Assertive Community Treatment services Dec. 1 amid efforts to reduce state spending.
Planned Medicaid mental health service changes
Idaho Capital Sun reported that Magellan of Idaho, the private company that runs Idaho Medicaid’s mental health benefits, is planning to cut services for people with severe mental illness. According to the Idaho Capital Sun, the planned changes would end peer support services and Assertive Community Treatment services on Dec. 1. The article described the cuts as part of efforts to avoid a projected state budget shortfall.
The Idaho Capital Sun reported that peer support specialists help people navigate mental health treatment. The source also reported that Assertive Community Treatment serves people with persistent, severe mental health issues who have struggled with traditional treatment options.
Home-based treatment program affected
According to the Idaho Capital Sun, Assertive Community Treatment teams include doctors and nurses who visit patients in their homes and help them stay on medication. The article reported that about 400 to 500 people statewide are enrolled in the program, citing a clinical director for a provider that operates a local team.
The Idaho Capital Sun reported that the provider representative said ending the program could shift costs to jails and psychiatric hospitals. The representative also said many people served through the program could become homeless if it ends. Those statements were concerns expressed to the Idaho Capital Sun, rather than confirmed outcomes of the planned changes.
Budget reductions behind the plans
The Idaho Capital Sun reported that the Idaho Department of Health and Welfare previously cut Medicaid payment rates by 4% for medical providers and managed care organizations. After that action, Magellan announced plans to cut payment rates for Medicaid mental health services by 4% to 15%, according to the source.
A Magellan spokesperson told the Idaho Capital Sun that the contractor had worked with the department to identify changes to optional programs that are allowed under the law. The department’s spokesperson told the source that the department and Magellan agreed there were no easy options for achieving the needed budget reductions.
The Idaho Capital Sun also reported that the state planned to extend 4% Medicaid provider payment-rate cuts for another year. The source reported that budget estimates showed Idaho was on track to end the fiscal year in June 2026 with a $58.3 million budget deficit.
Provider concerns
The Idaho Capital Sun reported that mental health providers were concerned that losing accessible treatment could lead to more critical incidents involving people with severe mental health issues. A provider representative told the source that people who cannot engage in treatment are at greater risk of reaching a crisis point.
What this means for Idaho patients
The Idaho Capital Sun reports these are planned service cuts, not completed changes. Idaho residents seeking local treatment options can use the directory, which lists 37 published clinics in Idaho, while checking coverage and available services directly with providers and insurers.
This is general information, not medical advice.
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This report is educational and is not medical advice. Coverage, availability and eligibility can change; verify details with the named source or your care team.