Idaho Medicaid needs $60 million more this year, as state faces projected budget shortfall

Originally published Sept. 12 on IdahoCapitalSun.com . The Idaho Department of Health and Welfare needs another $60 million for Medicaid this fiscal year, even after cutting pay rates for doctors and health care providers.

In its budget request released this month, the department said the supplemental budget request is needed to pay providers on time — because Medicaid expenses are forecasted to go above the agency’s set budget for fiscal year 2026, which ends in June 2026.

If providers aren’t paid, it could “lead to providers no longer contracting with Idaho Medicaid, impacting availability of services for those in need,” according to the budget request.

Recent cuts to provider pay rates, expected to save nearly $30 million this year, prevented the supplemental budget request fro