Idaho Restores Medicaid Mental Health Programs After Patient Deaths

Governor signs bill to reinstate mobile treatment and peer support services cut due to budget constraints

Apr. 3, 2026 at 6:08pm

A minimalist, glowing neon outline of a person's head and upper body against a dark background, representing the mental health focus of the story.The restoration of Idaho's mobile mental health treatment program aims to prevent further tragedies and support vulnerable residents.Boise Today

Idaho Governor Brad Little has signed a bill to restore Medicaid mental health treatment programs that were cut last year to comply with budget reduction orders. The cuts led to the deaths of at least four patients who had relied on the mobile treatment and peer support services. The new law will allocate $10.4 million in one-time funds to reinstate the Assertive Community Treatment program and peer support services for the next fiscal year.

Why it matters

The reinstatement of these critical mental health programs comes after warnings from providers and law enforcement about the public safety risks of the cuts, as well as lawsuits and acknowledgment from state officials that the cuts were unlikely to save money long-term. The deaths of several patients directly linked to the program cuts highlighted the urgent need to restore these services.

The details

In less than three months after an Idaho Medicaid contractor cut the mobile Assertive Community Treatment program for people with severe mental illness, four patients died. In the 18 months before the cuts, providers say just one patient died. The new law will use one-time legal settlement funds to reinstate the ACT program and peer support services, which help people navigate mental health treatment. The federal government will cover most of the $31 million in costs to restore the programs.

  • In December 2025, the Assertive Community Treatment program and peer support services were cut by an Idaho Medicaid contractor.
  • In the three months after the cuts, four patients died, compared to just one death in the 18 months prior.
  • On April 3, 2026, Idaho Governor Brad Little signed a bill to restore the mental health programs for the next fiscal year.

The players

Brad Little

The Governor of Idaho who signed the bill to restore the Medicaid mental health programs.

Magellan

The Idaho Medicaid contractor that cut the Assertive Community Treatment program and peer support services in December 2025.

Idaho Department of Health and Welfare

The state agency that oversees Medicaid and has said it has enough one-time savings to restore the mental health services this fiscal year if the new law is passed.

Kevin Cook

An Idaho Republican state senator who cited the patient deaths in pitching for the programs to be reinstated.

Ben Fuhriman

An Idaho Republican state representative who introduced a bill to reinstate the Assertive Community Treatment program in state law.

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What they’re saying

“We acknowledge the State's budget challenges which are self-inflicted by an overly aggressive tax reduction stance of the Legislative Branch and a complicit Executive Branch continuing to reduce tax revenue creating a budget shortage.”

— Samuel Hulse, President, Idaho Sheriffs' Association

“Since the programs were cut, 'we have had four deaths that you can pinpoint directly back to these programs that were done away with. Our sheriffs, our ERs and our courts are dealing with the same individuals over and over again. These are frequent flyers … because this system designed to stabilize them was taken away.'”

— Kevin Cook, Idaho Republican State Senator

“Because of this funding, people who truly need this level of support will continue to receive it, and our communities will be safer and stronger because of it. But the work is not done. We still have major mental health challenges across Idaho, and we need to keep finding ways to properly fund and protect these programs so we never end up in this position again.”

— Ben Fuhriman, Idaho Republican State Representative

What’s next

The Idaho Department of Health and Welfare has said it has enough one-time savings to restore the mental health services this fiscal year if the new law is passed. The programs are on track to be reinstated by July 2026 when the new fiscal year begins.

The takeaway

This case highlights the critical importance of maintaining access to comprehensive mental health treatment programs, even in times of budget constraints. The tragic loss of life and strain on public services underscores the need for state leaders to prioritize funding for these vital services that support vulnerable populations and promote community safety.