Idaho Reinstates Medicaid Mental Health Funding After Cuts Linked to Patient Deaths

State will resume reimbursing providers for Assertive Community Treatment and peer support services.

Apr. 7, 2026 at 6:26pm

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A ghostly, translucent X-ray image revealing the intricate structure of a human brain, conceptually representing the importance of mental health treatment.An X-ray view of the human brain highlights the critical need for accessible mental health services in Idaho.Boise Today

After the governor signed a bill to restore funding for Medicaid mental health programs that had been cut, the Idaho Department of Health and Welfare announced it would immediately resume reimbursing providers for Assertive Community Treatment and peer support services. The move came after four patients died in less than three months following the elimination of the mobile treatment program for people with severe mental illness.

Why it matters

The cuts to Medicaid mental health services in Idaho had severe consequences, with four patient deaths in less than three months after the elimination of a critical treatment program. The reinstatement of funding is a crucial step to ensure vulnerable Idahoans have access to the mental health care they need.

The details

In a Medicaid information release, Idaho Medicaid Administrator Sasha O'Connell wrote that the agency would immediately resume reimbursing providers for the Assertive Community Treatment program, a mobile treatment program for people with severe mental illness, and peer support services. This came a day after Idaho Gov. Brad Little signed a bill to restore funding for the programs that had been cut by a Medicaid contractor, Magellan, following the governor's order for budget cuts.

  • On Friday, the Idaho Department of Health and Welfare announced the reinstatement of Medicaid mental health funding.
  • On Thursday, Idaho Gov. Brad Little signed Senate Bill 1446 to restore the cut Medicaid mental health programs.
  • In less than three months since the Medicaid contractor cut the mobile treatment program, four patients died.

The players

Sasha O'Connell

The Idaho Medicaid Administrator who announced the reinstatement of Medicaid mental health funding.

Brad Little

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

Magellan

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

Access Behavioral Health Services

A provider that is working with Magellan to understand the process of reinstating the mental health programs.

Laura Scuri

The co-owner of Access Behavioral Health Services who spoke about the process of reinstating the mental health programs.

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What they’re saying

“Providers may immediately begin working with Magellan, United Healthcare, and Molina to restore services. These managed care contractors will work with providers to reach out to individual members who had been receiving (Assertive Community Treatment) and Peer Support before their elimination.”

— Sasha O'Connell, Idaho Medicaid Administrator

“Magellan supports the State of Idaho's decision to reinstate Assertive Community Treatment (ACT) services.”

— David Welsh, Magellan's Idaho Executive Director

“This is acknowledgement that we need to start moving as quickly as possible. But these are massive systems that have to reconfigure some stuff to get us back, is what we're being told. And we have to bring staff in, onboard. Most of us have to hire one or two positions, so it'll be, before it's up running and perfect, it'll be about a month. But we're going to try to put them together as quickly as we can.”

— Laura Scuri, Co-owner, Access Behavioral Health Services

What’s next

Providers are working with Magellan to understand the process of reinstating the Assertive Community Treatment program and peer support services, with the goal of having the programs back up and running within the next month.

The takeaway

The reinstatement of Medicaid mental health funding in Idaho is a critical step to ensure vulnerable residents have access to the care they need, after the previous cuts led to tragic consequences. This move highlights the importance of maintaining robust mental health services, especially for those with severe conditions who rely on programs like Assertive Community Treatment.