Budget bill made one change legislators don't like
Originally published
For years,
That’s partly why the Legislature didn’t expand Medicaid to more low-income earners. In 2018, voters approved that policy through a ballot initiative.
Now, as many states brace for federal cuts and policy changes to Medicaid under the One Big Beautiful Bill Act passed by
The
“A lot of it came from the rising cost of Medicaid. So I think we have that in common with what the federal government is looking at,” she told the
But the new law passed by
Mega bill caps payments to providers
Medicaid, which insures around one-fifth of Americans, often pays much lower than what it costs health care providers to give out services.
That’s why in
In the future,
The bill didn’t spell out how high Idaho’s state-directed payments would be. But VanOrden said lawmakers were “banking on” getting the average commercial state-directed payment rates.
“Certainly, it’s a disappointment that we won’t be able to apply for those waivers anymore to get that average commercial rate, which we were banking on,” she said.
But she doesn’t think losing that higher rate will affect Idaho’s funding plans as part of the shift to managed care.
The new federal law caps Medicaid state-directed payments at as high as rates for Medicare, which reimburses more but still not as much as providers say the true treatment costs are.
The mega law’s new cap on state-directed payments won’t affect the status quo in
But the status quo in
“Status quo is we’re still 50th in the nation in physicians per capita. Status quo means we’re still having a workforce shortage throughout the health care system,” he said. “Status quo still means that more than half of our rural hospitals have less than a 1% operating margin, which is razor thin. Status quo means some of our hospitals are well below the standard of days cash on hand to operate. Status quo means you’re going to wait months to get in to see a specialist.”
States with state-directed payment rates higher than the new cap will have to ratchet down over time. That means Idaho’s new ceiling for state-directed payments will be every other state’s floor, Whitlock said.
“It may take some states 10 years to ratchet down and get to the
But some other new Medicaid changes that are part of the new mega law might not affect
The new federal law calls for Medicaid work requirements and twice-a-year eligibility checks.
And Idaho’s status quo won’t be affected by new federal limits on taxes on health care providers, which states use to access more federal funds, state health officials say. That’s because Idaho’s taxes on providers like hospitals and nursing homes are below the new caps, O’Connell said.
In a column published last month in the
“Instead, Idaho’s rural hospitals will benefit from a new Rural Health Transformation Program that allocates money to all states, not just those using gimmicks to draw down more federal money,” Crapo wrote.
For five years,
“This is arguably the single largest investment in rural health care in more than 20 years,” Crapo wrote in the column for the
Over the next decade, the bill is expected to cut federal funds for Idaho Medicaid by


‘The most vulnerable’: Rural, inner city communities brace for impacts of Trump's Medicaid cuts
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