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Idaho's Mental Health Budget Cuts: A Risky Gamble?

Idaho, USAThursday, December 25, 2025
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Idaho's recent decision to cut mental health services is causing significant concern. The state's top Medicaid official, Sasha O'Connell, isn't even sure if these cuts will save money in the long run. With a budget shortfall looming, Governor Brad Little ordered cuts across the board, and mental health services were on the chopping block to avoid even worse budget problems.

Impact of the Cuts

The cuts are affecting specialized mobile teams that assist individuals with severe mental illness. If a court forces the state to pause these cuts, other services might have to be reduced instead. This could mean less funding for psychiatric hospitals, crisis centers, and other crucial programs.

Public Safety Concerns

The cuts have already taken effect, and mental health providers and sheriffs are worried about public safety. Idaho Senator Julie VanOrden is exploring ways to restore funding, possibly using money from lawsuits against tobacco and opioid manufacturers. However, other funding options are limited, and it's unclear if the Legislature will tap into the state's rainy day fund.

Legislative Meeting

Before the Legislature reconvenes, a panel of lawmakers met with Medicaid providers to gather feedback on the state's shift to private companies running Medicaid benefits. Senator Kevin Cook requested more details on the mental health cuts. It turns out, the state lacks data to show that the cuts will save money long term, which disappointed Cook.

Provider Concerns

When providers discussed the cuts, Senator VanOrden interrupted them, stating that the meeting was about the state's shift to managed care, not the cuts. However, providers like Ric Boyce, who directs Mental Health Specialists in Pocatello and Blackfoot, insisted on addressing the cuts. He mentioned that they have already highlighted the vulnerabilities of managed care.

Sheriff's Warning

On the day the cuts went into effect, Idaho Sheriffs' Association President Samuel Hulse warned the governor and state lawmakers that the cuts would risk public safety. He stated that the Legislature cut too deep and now they have a problem. Sheriffs run the jails, which he described as the default mental institutions of the nation. Without effective services, people end up in the justice system.

Future Budget Concerns

Idaho Medicaid has few options for cuts, according to O'Connell. She said if the agency doesn't proceed with its plans for cuts, it must consider eliminating more optional Medicaid-covered services. Heading into the next legislative session, VanOrden is worried about the state's budget situation. She's nervous about this year, but even more nervous about next year, when the budget deficit is projected to grow to more than a half billion dollars.

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