Idaho Medicaid faces 4% cut amid budget shortfall

BOISE, Idaho — Idaho's Medicaid program plans to cut reimbursement rates to healthcare providers by 4% as the program faces budget shortfalls that far exceed legislative projections.

On Aug. 22, the Idaho Department of Health and Welfare (DHW) sent a memo to doctors who treat Medicaid patients stating that the state will reduce its payments to cover costs by 4%. The memo states the rate cuts will start on Sept. 1.

The state's Medicaid budget is now projected to grow 19% this year, more than double the 8% increase estimated by the Division of Financial Management during the legislative session during the legislative session when the IDHW budget was passed by the Joint Finance and Appropriations Committee.

Idaho contributes approximately one-third of funding for traditional Medicaid cov