IDAHO — Multiple behavioral health providers are suing the Idaho Department of Health and Welfare over a billing change to Assertive Community Treatment (ACT) that the providers say effectively ends the bundled ACT benefit for Medicaid patients.
The ACT program serves individuals with “severe mental illness” who are deemed a threat to themselves or those around them. It is described as a “last resort” treatment for patients.
According to the legal document, the plaintiffs claim that without the ACT program, patients are at elevated risk of ending up in hospitals, homeless services, or criminal custody.
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The petition cites that the Idaho Department of Health and Welfare reduced Medicaid reimbursement rates by 4% in 2025.
When the providers went to look at the ACT treatment for patients, they were notified that ACT treatment “will no longer be billable”.
The plaintiffs argue that this change was made without the required public notice or comment periods, violating Medicaid regulations and state administrative procedures.
The lawsuit says eliminating the bundled ACT benefit would increase public‑safety risks and asks the court to block the change, while restoring bundled ACT reimbursement.