In March, state health officials told lawmakers they were facing a budget gap for Medicaid.
They said they could shift around some funding and eliminate an upcoming pay bump for Medicaid providers to reduce the agency’s budget request. Even with those efforts, the state health department will likely need another $7 million.
The department is also considering cutting certain Medicaid services to reduce that number. The state health department did not respond to MTPR’s request for comment on which services might be eliminated.
Medicaid advocates are worried. Heather O’Loughlin with the Montana Budget and Policy Center says the state needs to remember all the work it’s done after budget cuts nearly a decade ago.
“It is very hard to rebuild once programs become financially unviable to continue,” she says.
The state has spent the last four years trying to reopen numerous mental and behavioral health services like crisis stabilization.
Sierra Riesberg is CEO of the Behavioral Health Alliance of Montana.
“Most behavioral health organizations are still recovering from the impact of 2017,” She says.
Riesburg says reimbursement rates haven’t kept up with what it costs to run many services. Eliminating the upcoming rate increase could push providers to stop offering care that loses money.
Gov. Greg Gianforte’s office will ultimately approve or deny the state health department’s cost-cutting plan. Gianforte’s office in a statement says it hasn’t seen a formal plan yet.
Lawmakers will also have a chance to chime in on May 13.
