Senate committee removes provider-facing behavioral health rules as state shifts services to contractor

BOISE — The Idaho Senate Health and Welfare Committee voted to repeal and amend a series of rule chapters that described the Department of Health and Welfare (DHW) as a direct provider of substance use disorder and mental-health services, reflecting a shift in service delivery to a contract manager role under Magellan, a private contractor whose statewide behavioral-health contract took effect July 1, 2024.

The committee approved separate dockets that remove or rewrite rules for substance use disorder services, adult mental health services and children's mental health services. Committee members and department staff said the text of the rules was left in place longer than necessary after the contract began and that the dockets align rules with current practice: DHW now oversees the contract rather than providing treatment directly.

Jared Larson, Legislative and Regulatory Affairs Chief for DHW, told the committee the department had prepared for the transition over two years and that repeal of provider-facing language simply reflects that the contract, not DHW as a direct operator, governs service delivery. "That contract reflects what was in these rules, and…