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Senate rejects sponsor’s bill to 'softly' unwind Medicaid expansion; later motion indefinitely postpones it

2264286 · February 11, 2025
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Summary

Senate Bill 62, a sponsor‑backed bill the sponsor described as a “soft unwind” of Medicaid expansion that would stop new enrollments while keeping current enrollees covered pending a federal waiver, failed second reading 20–30 and was then indefinitely postponed by a majority vote of 31–19.

Senate Bill 62, described by its sponsor as a “soft unwind” of Medicaid expansion for able‑bodied adults, failed to advance on second reading and was subsequently indefinitely postponed by a majority of the Senate.

The nut graf: the bill would have prevented new enrollments in Medicaid expansion while attempting to maintain coverage for current enrollees through a waiver from the federal Centers for Medicare & Medicaid Services (CMS); supporters framed it as preparation for potential federal cuts and block‑grant scenarios, while opponents argued it would remove health coverage from vulnerable Montanans and shift costs to the state.

Sponsor remarks summarized the bill’s intent: if federal match levels changed, the state would seek a waiver to preserve coverage for current enrollees while stopping new enrollments. The sponsor called the measure a “soft unwind for medicaid expansion.” He argued that looming federal changes — including potential cuts and a move to block grants — require Montana to plan for a different financing structure.

Opponents pressed two lines of critique in floor discussion: (1) the bill assumes a federal waiver will be granted, which no state has yet received for this approach, and (2) cutting off new enrollment would leave a population without coverage or marketplace options, particularly people whose incomes are too low to qualify for marketplace subsidies. Senator Kerr Carpenter said it “seems absurd that we would be making a giant fiscal and policy decision based on a such a volatile environment.” Other speakers described the bill’s potential impacts on hospitals, rural providers and working Montanans who rely on expansion coverage.

On the committee (second reading) vote, the clerk recorded 20 senators voting aye and 30 voting nay; the bill failed to pass second reading. Following that result Majority Leader McGillivray moved to indefinitely postpone the bill; that motion passed on a recorded vote of 31 ayes to 19 nays. The committee report later listed SB 62 as indefinitely postponed.

Outcome: SB 62 failed to pass and was indefinitely postponed by the Senate; sponsors and opponents signaled that Medicaid expansion and federal changes will remain a central legislative issue.

Votes recorded: second reading 20–30 (failed); motion to indefinitely postpone 31–19 (passed).