Draft Bill to Restore Idaho Medicaid 'Healthy Connections' Program Stalls Amid Budget Concerns

Lawmakers say the program was accidentally cut, but reinstating it faces funding challenges in a tight budget year.

Published on Feb. 24, 2026

Got story updates? Submit your updates here. ›

A draft bill to temporarily reinstate an Idaho Medicaid program called 'Healthy Connections' that was accidentally cut last year is stalling in the state legislature due to budget concerns. The program was meant to help Medicaid patients avoid unnecessary emergency room visits, but was eliminated as part of a broader Medicaid cost-cutting measure. Reinstating the program could save the state between $150-$400 million annually, but some lawmakers say there is no funding available to do so during the current tight budget year.

Why it matters

The elimination of the Healthy Connections program has hit pediatric clinics hard, with many saying they may have to limit the number of Medicaid patients they treat or stop accepting Medicaid altogether. Restoring the program could help ensure continued access to primary care for Idaho's Medicaid population and avoid more costly emergency room visits.

The details

Last year, the Idaho Legislature passed a sweeping Medicaid cost-cutting bill that inadvertently eliminated the Healthy Connections program. The program paid some doctor's offices to be available around the clock to consult with Medicaid patients about health issues, in an effort to avoid unnecessary emergency room visits. A draft bill has been proposed to temporarily reinstate the program until the state fully transitions to private Medicaid management, which is not expected to happen until 2029. However, the bill is stalling due to budget concerns, with some lawmakers saying there is no funding available to restore the program during the current tight budget year.

  • The Healthy Connections program was eliminated in January 2026 as part of the Idaho Legislature's Medicaid cost-cutting bill passed the previous year.
  • The draft bill to temporarily reinstate the Healthy Connections program was proposed in early 2026.

The players

Sen. Brandon Shippy

A Republican state senator from New Plymouth, Idaho who is sponsoring the draft bill to reinstate the Healthy Connections program.

Brian Parsons

Vice chair of the Bannock County Republican Party in Idaho, and whose wife is a pediatrician in Pocatello. Parsons is working with Sen. Shippy on the bill to reinstate the Healthy Connections program.

Sen. Julie VanOrden

A Republican state senator and chairwoman of the Idaho Senate Health and Welfare Committee, who says she needs assurance from the legislature's budget committee on how to fund the Healthy Connections program before the bill can be introduced.

Idaho Department of Health and Welfare

State agency that told lawmakers last summer that it will take until 2029 for Idaho to fully shift to private Medicaid management, longer than some lawmakers expected.

Got photos? Submit your photos here. ›

What they’re saying

“I don't know that there's going to be the heart there to do it. I think it would be the wise and prudent thing for us to fund and to reinstate this year, and it may be even a case for tapping into rainy day funds.”

— Sen. Brandon Shippy, Republican state senator (Idaho Capital Sun)

“This is the cost containment tool the state of Idaho gave to primary care to keep Medicaid … the budget from blowing up.”

— Brian Parsons, Vice chair, Bannock County Republican Party (Idaho Capital Sun)

“With budget cuts right now, I don't see one.”

— Sen. Julie VanOrden, Republican state senator, chairwoman of Senate Health and Welfare Committee (Idaho Capital Sun)

What’s next

The draft bill to reinstate the Healthy Connections program must still clear several legislative hurdles, including securing funding approval from the Joint Finance-Appropriations Committee, before it can be introduced and voted on by the full Idaho Legislature.

The takeaway

The elimination of Idaho's Healthy Connections Medicaid program, which was intended to help avoid costly emergency room visits, has created challenges for the state's healthcare providers and Medicaid patients. Restoring the program could save the state millions, but budget constraints make it uncertain whether lawmakers will be able to fund its reinstatement in the near future.