June 2004

Montana Public Health Care Redesign Project

As a result of state revenue shortfalls during the last two legislative sessions (the 57th Legislative Session in 2001 and the 58th Legislative Session in 2003) the Department of Public Health and Human Services was forced to make a series of very difficult decisions that resulted in significant reductions in the state's Medicaid Program. Given the short time frame of a 90 day legislative session, the complexity of the issues, and potential for significant harm to recipients through unintended consequences, the Department was determined to avoid similar crisis management in future legislative sessions. To accomplish this, the Department requested legislation to formalize a review of the public health programs administered by the Department. The resulting legislation, HJ 13, directs the Department to conduct a study regarding the health programs administered by the Department and provide a report to the 59th Legislature outlining options that may be undertaken to redesign the health programs administered by the Department. To meet this legislative mandate, the Department has undertaken a comprehensive review of not only the existing eligibility criteria and health benefits provided but also has examined the structure and values that are the fundamental underpinnings of the state's Medicaid system.