Proposed Medicaid cuts aim to save money, risking coverage for thousands of Idahoans

COEUR D’ALENE, Idaho — A new bill in the Idaho legislature would cut the current enrollment for Medicaid in half instead of repealing it entirely.

Over 60% of Idaho voters approved the Medicaid program in 2018. Now, multiple bills have been introduced to either repeal or make cuts to the program to save money.

House Bill 138 was introduced by Representative Jordan Redman (R-Coeur d’Alene). It would limit Medicaid expansion to enrolling 50,000 people at any given time.

“It establishes safeguards for the continued expansion of Medicaid eligibility for able-bodied adults,” Redman said.

The program is currently helping almost 90,000 people in Idaho who can’t afford medical insurance. Enrollment in the Medicaid program was as high as 145,000 in 2023.

Rep. Redman says the bill could save the state over $100 million if all conditions of the bill are met.

“This safeguard approach will strengthen Idaho’s Medicaid program while maintaining flexibility,” Redman said.

This reform would also come at the cost of tens of thousands of people losing their coverage. The bill would also ban Idahoans on Medicaid expansion from being eligible for the program after three years.

HB 138 does not offer any alternatives for people who are no longer eligible or would run out of eligibility.

If the safeguards in the bill aren’t met, Medicaid expansion would be repealed entirely.

“All of the lost tax revenue that comes from essentially losing a billion dollars in federal funding coming into the state, should I not be concerned about all of those countervailing costs?” asked Rep. Ilana Rubel (D-Boise). “Because my back-of-the-envelope is that it would cost us about $140 million and this only references savings.”

Those against the bill say the majority of Idahoans still support Medicaid expansion and bills that would repeal or cut the program don’t represent the voter.

The bill says if federal or state agencies fail to meet the requirements for limiting enrollment, the money that would be used for Medicaid would be redirected to serve the truly needy. 90% of Medicaid in Idaho is funded by the federal government.