Idaho Reinstates ACT Program After 4 Patient Deaths Linked to 2025 Medicaid-Driven Cuts
Updated
Updated · Washington Monthly · Jul 4
Idaho Reinstates ACT Program After 4 Patient Deaths Linked to 2025 Medicaid-Driven Cuts
1 articles · Updated · Washington Monthly · Jul 4
Summary
Senate Bill 1446 restored Idaho’s Assertive Community Treatment program for the new fiscal year after providers tied four deaths in four months to its December 2025 dismantling.
A $167 million state revenue hit tied to federal tax changes helped trigger a 3% agency-cut order, and Idaho then stripped reimbursement from 18 of ACT’s 20 bundled services, making the mobile team model financially unworkable.
About 200 high-need patients had relied on ACT’s coordinated nurses, counselors and prescribers; providers reported crisis-center visits in eastern Idaho rose 34% in December and 43% in January after the cuts.
Brad Little and state health officials had said ACT was restructured rather than eliminated, but lawmakers backing restoration said the fallout was unmistakable, with one Republican senator saying four deaths could be traced to the program’s removal.
The reversal leaves broader pressure intact: Idaho still kept $22 million in separate disability-service cuts, faces a projected $600 million to $1 billion fiscal 2027 gap, and the report links similar Medicaid-related service closures nationwide to the 2025 federal law.
As states face massive budget shortfalls from the new law, can they sustain essential services like mental healthcare?
Will the administration's anti-fraud push and new rural fund offset the wave of hospital closures triggered by Medicaid cuts?
With millions set to lose coverage from new work rules, what is the plan for the resulting uncompensated care crisis?
The Human and Policy Impact of Idaho’s 2025 Medicaid Mental Health Cuts and 2026 Reinstatement
Overview
In 2025, Idaho made deep Medicaid cuts to save money, targeting mental health programs like Assertive Community Treatment (ACT) and peer support. These cuts left a critical gap in care, leading to tragic outcomes such as patient deaths and increased strain on emergency services. The loss of support sparked alarm, legal challenges, and strong community outcry from health providers and sheriffs. This pressure, along with the visible human cost, pushed lawmakers to reinstate the services in 2026. Idaho’s experience highlights the real-life dangers of cutting essential mental health care and the power of community advocacy in shaping policy.