Montana Health Dept Urged for Investment Post-Medicaid Redetermination

Montana’s Medicaid coverage was terminated for thousands not due to ineligibility, but due to administrative barriers from the state health department. A letter signed by 66 national and state organizations urges Gov. Greg Gianforte to include funds for additional staff and software updates in the Department of Public Health and Human Services in the 2027 budget proposal.

The Medicaid redetermination process, following a freeze during Covid-19, disenrolled 135,000 recipients from Medicaid. The main reason cited for disenrollment was poor communication with the department. Ex-enrollees, potentially still eligible, now face longer waiting times to reapply, and Medicaid providers struggle financially as applications are processed.

Preliminary budget planning at the health department

The letter recommends consumer advisory groups, surveys, and end-user testing to improve communication with clients. It also suggests that department staff use plain language help reduce delays. The department has stated it meets all federal standards for processing redeterminations and new applications, and is considering all suggestions as it plans its budget.

Organizations that signed the letter, such as food pantries, healthcare providers, and faith organizations, see people struggling when they cannot access benefits on time. The letter, sent on June 17, also states that cuts made in 2017 forced 19 public assistance offices to close, putting pressure on existing staff.

The letter calls for investment and modernization of Montana’s safety net services in the 2027 biennial budget. It also emphasizes the need for more in-person assistance options.

Letter: Hard to navigate website, in-person assistance required

The organizations call for the reopening of rural public assistance offices, with in-person applications reducing errors and delays. The state health department’s website needs an overhaul, they said, and phone lines should be better managed. Better staffing is believed to be the solution to these issues.

The letter said understaffing caused procedural delays during Medicaid unwinding. The state meets the federal standard of paying 90% of \”clean claims\” within 30 days, and 99% within 90 days. About 9% of cases remain pending, translating to just under 20,000 cases.