Next year, the Montana Legislature must make a critical decision about maintaining Montana’s current Medicaid program. Montanans overwhelmingly support Medicaid, and that includes Medicaid expansion, the piece of the program which provides health care coverage for over 80,000 adults. Medicaid is the country’s biggest health insurance program, and a critical safety net for individuals who can’t afford other forms of insurance.
Montana Medicaid Today
Prior to 2015, Medicaid only covered parents with very low incomes and adults with certain disabilities. Childless adults and parents with incomes just above the threshold but who were still below the poverty line had little-to-no options for affordable health care. In the past decade, however, Montana has made changes to the program to allow coverage for individuals who had no other affordable health care options. Today, over 80,000 Montanans have access to life-saving care through this expanded coverage.
In 2015, the Legislature passed the bipartisan Health and Economic Livelihood (or HELP) Act, expanding Medicaid eligibility to adults earning up to 138 percent of the federal poverty level. The HELP Act opened the doors for tens of thousands of everyday Montanans who could now access health care, mental health care, and substance use disorder treatment.
Montana’s 2015 change in Medicaid eligibility also improved health care access for all Montanans. By strengthening our health care delivery system, thousands of Montanans now have access to improved care. The increase in federal funds that this newly covered population brought created more options for mental health and substance use treatments, and increased the services Indian Health Services facilities can offer. These funds have also allowed rural Montana hospitals and providers to stay open and keep providing necessary services to their entire community.
Since the Legislature strengthened the program in 2015, Montana Medicaid has helped keep created good-paying jobs, and helped take some of the pressure off small businesses who couldn’t afford health insurance for employees. Over the past nine years, Medicaid expansion has become an integral part of Montana’s Medicaid program, supporting health care and strengthening our economy.
Changing Montana’s Medicaid Program is Too Risky
In 2025, the Montana Legislature must decide on whether it will continue Montana’s current Medicaid program. If it fails to do so, more than 80,000 Montanans would lose coverage, as Medicaid eligibility drops back down to extremely low limits for parents, and childless adults will no longer be eligible for coverage. Thousands of Montanans would no longer be able to afford essential health care and be at greater risk of financial instability.
A seismic shift in Montana’s Medicaid program would send shockwaves through our healthcare system. With 80,000 adults at risk of becoming uninsured, rural hospitals, substance use disorder treatment providers, and other health care service providers may have difficulty making ends meet and keeping doors open.
In addition to putting the health care of 80,000 Montanans at risk, if Montana fails to continue its Medicaid program in the current state, we will lose millions of dollars in federal funds. The federal government pays for 90 percent of Medicaid expansion. These funds translate to $750 million in new spending every year, and $475 million in personal income. This blow to Montana’s economy could result in hits to our state budget: reduced spending by agencies, increased state costs for other categories of Medicaid enrollees, and reduced tax revenues. Additionally, the recent investments the state has made into behavioral health system would benefit fewer individuals.
We Must Continue Montana’s Current Medicaid Program
Montana’s Medicaid program provides affordable health care to Montanans from all walks of life. Across our state, Montanans who are farmers, construction and restaurant workers, caregivers and childcare providers, and students are covered by Montana’s Medicaid program. We need to continue Montana’s current Medicaid program because so many of our fellow Montanans depend on it.
For more information on the importance of continuing Montana’s Medicaid program, please visit www.healthymontana.org. Here, you can find resources, current news articles, and ways to get involved.
MBPC is a nonprofit organization focused on providing credible and timely research and analysis on budget, tax, and economic issues that impact low- and moderate-income Montana families.