A bill that would cut more than $21 million in Medicaid funding for providers who support people with developmental disabilities is on pause after a Senate committee asked for more time to review it.
WATCH: Idaho Medicaid disability funding cut bill paused by Senate committee
House Bill 863 would reduce Medicaid spending on services that help people with developmental disabilities live more independently, including residential habilitation and other home and community-based services.
Bill notes claim the state currently spends more than $176 million on these programs. The bill would cut about $21.8 million from that funding starting in 2027.
The bill is sponsored by Health and Welfare Chairs Julie Van Orden and John Vander Woude.
"This is one of the governor's recommendations of how to balance the budget,” Chairman Vander Woude said. “I felt like this was probably the best route to go without trying to cut every and all the other budgets.”
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The bill has already passed the House, but on Monday, it was held in a Senate committee in a motion by Sen. Melissa Wintrow, who said lawmakers needed more time to review it.
The proposal is also connected to the federal case K.W. v. Armstrong, which challenged how Idaho decides the level of services people with developmental disabilities receive through Medicaid.
Lawmakers say funding was set aside in 2022 to implement new services and a budget tool related to that case, but say those plans were stopped by a court order.
Ritchie Eppink, an attorney involved in the case, testified that that claim wasn't accurate.
"In fact, the opposite is true. The court ordered that the Department of Health and Welfare complete implementation by June of 2022. The department then did not meet that deadline, and the court has now held the department in contempt for its delay," Eppink said.
The Idaho Department of Health and Welfare said the state did pause part of the implementation while working to develop new services and a new budget tool.
"Which will take a couple of years because we have to procure that contract," said Sasha O'Connell, with The Idaho Department of Health and Welfare.
The bill would also require annual audits to track how Medicaid dollars are spent. Critics said more transparency is welcome, but they worry the nearly 10% cut could hurt providers and the people they serve.
"Staff will be applying for unemployment, Medicaid, food stamps. Participants are now at risk of homelessness, jails, mental health hospitalizations," said Jodi New, who testified against the bill.
"Reducing that budget is gonna make a lot of our staff hit the poverty line," said Angelita Martinez, owner of Legacy Reshab Services.
Katelyn Hodges, who receives services through Legacy Reshab Services, testified that those programs helped her stay out of jail and build stability.
"I spent half of my twenties in Canyon County Jail. I don't wanna go back. I need my support, and if they take it away, then I don't know what I'll do," Hodges said.
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Martinez also notes that programs like hers can reduce state costs compared to facilities like the Southwest Idaho Treatment Center (SWITC), which is designed to support individuals with developmental disabilities in crisis.
“Residential habilitative service, the cost is at least two-thirds compared to what they would cost daily at SWITC or having individuals come in and out of jail,” Martinez said.
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