Idaho Budget Committee Approves Restoring Cut Medicaid Mental Health Programs After Patient Deaths

Why It Matters

Idaho’s Legislature has taken action to reverse cuts to critical mental health services after four patient deaths prompted urgent calls for restoration of Medicaid-funded programs. The Joint Finance-Appropriations Committee’s decision to reinstate Assertive Community Treatment (ACT) and peer support services addresses a public health crisis that law enforcement and healthcare providers warned would destabilize communities and increase costs across multiple state systems.

The vote signals a reversal of budget cuts that Idaho Medicaid contractor Magellan implemented last year under the governor’s mandate for spending reductions. Mental health advocates say the reinstatement is essential to prevent further loss of life and reduce the burden on Idaho’s criminal justice system.

What Happened

On Monday, Idaho’s Joint Finance-Appropriations Committee—the Legislature’s powerful budget panel—voted to approve spending legal settlement funds to restore the mental health treatment programs that were eliminated in 2025. The decision comes less than four months after Magellan cut the services, creating a gap in care for some of Idaho’s most vulnerable populations.

The restored programs include Assertive Community Treatment, a mobile treatment program serving individuals with severe mental illness, and peer support services that help patients navigate mental health care systems. Both programs had operated successfully before the cuts but were eliminated as part of broader state budget reduction efforts.

The timing of the reinstatement is critical. According to reporting by the Idaho Capital Sun, four patients died within four months of the service cuts—compared to just one patient death in the 18 months before the programs were eliminated. This dramatic increase prompted emergency action from lawmakers and healthcare providers.

Rep. Rod Furniss, R-Rigby, spoke to the committee about support from the Idaho Sheriffs’ Association, explaining how the loss of these programs has created chaos for law enforcement. “Without these programs, they just don’t have any support and know what to do with people that are just acting out,” Furniss said. “When they don’t have someone to call, they just have to take him to jail. That just increases our costs at jail, which increases our property tax.”

By the Numbers

4 patient deaths occurred in less than four months following the service cuts, compared to a single death in the 18 months prior to the elimination of programs.

1 program—Assertive Community Treatment—serves individuals with severe mental illness through mobile treatment services, and represents a core component of community-based mental health infrastructure.

18 months of stable operations preceded the cuts, establishing the program’s track record of effectiveness in serving Idaho’s mental health population.

Multiple state systems have experienced increased demand and costs, with eastern Idaho crisis centers reporting significant demand spikes following the service reductions.

Zoom Out

Idaho’s reversal reflects a national pattern of states reassessing cuts to mental health services amid rising mortality and crisis system strain. Assertive Community Treatment programs operate in multiple states and have long been recognized as evidence-based interventions for individuals with serious mental illness, reducing hospitalizations and emergency room visits.

The connection between mental health service availability and criminal justice costs is well-documented nationwide. Law enforcement agencies across the country have increasingly advocated for mental health funding as a way to reduce incarceration rates and allow officers to focus on public safety rather than managing behavioral health crises.

Peer support services—often staffed by individuals with lived experience of mental illness—have become a standard component of modern mental health systems. These programs complement clinical care and improve treatment engagement, particularly among populations reluctant to access traditional mental health services.

What’s Next

The Idaho Legislature will now consider legislation to formally reinstate the mental health programs using legal settlement funds identified by the budget committee. The full Legislature must approve the spending before it takes effect.

Laura Scuri, a clinic owner who advocated for restoring Assertive Community Treatment, called the committee’s vote “an encouraging step forward for the state,” noting that the programs represent “a clear commitment to community-based care that keeps people safe, stable, and connected to treatment.”

Implementation timelines for program restoration remain to be determined, though providers and law enforcement have indicated urgency given the mortality spike and increased demand at crisis centers. The Legislature’s full session provides a window for final approval before current appropriations conclude.