Gov. Greg Gianforte and state health officials have agreed to withhold a pay bump for Medicaid providers. The move will resolve a budget shortfall for the public health insurance program.
The state health department earlier this year told lawmakers that current Medicaid funding would fall short by around $7 million.
Officials were able to move some funding from different accounts to help fill that gap to prevent the state from dipping into the general fund.
Health officials told lawmakers they were considering eliminating some optional Medicaid services, but foregoing the 3% pay increase for Medicaid providers was enough.
In a statement, the state health department said, “To be clear, these aren’t cuts. DPHHS is not implementing a second year of provider rate adjustments due to the Legislature not adopting the Department’s request for Medicaid funding during the 2025 session.”
Health officials say lawmakers didn’t accurately estimate how much patients would utilize Medicaid, despite repeated warnings.
Health care providers are dealing with rising costs and Medicaid already falls short of what it costs to provide many services. Some providers may be forced to eliminate services if they become financially unsustainable.
