Idaho's DOGE Task Force is recommending state lawmakers completely repeal its voter-approved Medicaid expansion program.
About 81,000 Idahoans are enrolled in Medicaid expansion with a general fund budget of $91.7 million. That's roughly 9% of the state's share of the entire Medicaid program.
Task force co-chair, Sen. Todd Lakey (R-Caldwell), read a letter to the group Friday from a small business owner who offers his workers health coverage.
The letter said his employees are routinely asking to work fewer hours to stay eligible for Medicaid instead of paying a quote "meager" $60 every two weeks for the company plan. Single people must earn less than roughly $21,000 a year to qualify for Medicaid expansion.
"That certainly creates some frustration on my part that we have employers with health insurance benefits that are provided and we have people not taking it so they can remain on Medicaid," Lakey said.
Rep. Dustin Manwaring (R-Pocatello) agrees something needs to be done, though he doesn't think the program needs to be completely repealed.
"Because I don't know if it's an [all or nothing situation]. There may be some other things we can do to contain costs without full repeal," Manwaring said.
Rep. Josh Tanner (R-Eagle), who originally made the motion to axe Medicaid expansion, said his fellow lawmakers shouldn't just nibble around the edges of the program to save money.
"We can say we want to get rid of pharmaceuticals but I think that opens up another can of worms in another direction. We can say we want to get rid of adult dental but that's a very low cost and it's not one that's really been a large cost driver in general for us," Tanner said.
State health officials say even if Medicaid expansion is repealed, taxpayers would have to cover tens of millions of dollars in other costs that are currently paid for by the program.
State lawmakers and Gov. Brad Little would both need to sign off on a repeal plan to take effect.
Legislators will return to Boise on Jan. 12.
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