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Committee questions fiscal tradeoffs as lawmakers consider 12-month continuous Medicaid eligibility
Summary
House Bill 386 would extend 12-month continuous Medicaid eligibility for adults; sponsors and proponents argued it reduces churn and downstream costs while officials warned of a federal matching-rate (FMAP) impact and additional state general fund cost estimates.
Helena — Lawmakers and Medicaid officials traded data and policy arguments during a House Appropriations Committee hearing on House Bill 386, which would provide 12-month continuous Medicaid eligibility for adults covered under Montana’s Medicaid programs.
Representative SJ Howell, sponsor of HB 386, told the committee the fiscal-note calculation follows federal assumptions: CMS estimates states adopting continuous eligibility see a 2.6% increase in member months and that states pay the standard federal match for those additional months. Howell described three categories of savings from continuous eligibility: administrative (reduced churn and fewer re-enrollments), lower per-member health costs through more continuous primary care, and broader social benefits…
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