Wyoming Lawmakers Review Past Health Department Budget Cuts and Future Impacts

TLDR

The Wyoming Legislature’s Subcommittee on the Department of Health Budget met on October 14, 2025, to review the long-term effects of the 2017 and 2021 budget cuts. Lawmakers and department officials discussed lessons learned, strategies for maintaining essential services, and the growing costs of healthcare and long-term care as Wyoming’s population ages.

What You Need to Know

• 💰 Focus on 2017 and 2021 Budget Reductions:
  Department of Health Director Stephan Johansson outlined how the 2017 cuts removed roughly $90 million in General Fund dollars, with $40 million in matching federal reductions.
• ⚖️ Difficult Choices:
  Reductions targeted five main areas — Medicaid, behavioral health, developmental preschools, and long-term care facilities — which together make up nearly 90% of the agency’s budget.
• 🩺 Impact on Medicaid Services:
  Officials confirmed that adult dental and vision coverage removed in 2017 were never fully restored, while most provider reimbursement rates remain at 2016 levels.
• 🧠 Behavioral Health Oversight:
  Lawmakers examined how prior authorization and service caps on behavioral health visits helped control overutilization but created new administrative burdens for providers.
• 🧓 Aging Population Pressures:
  Medicaid enrollment for long-term care and disability programs continues to grow. Officials estimate Wyoming will reach a demographic peak in 2030 as baby boomers require more services.
• 📊 HealthStat Performance Management:
  The department described its data-driven “HealthStat” system, which tracks outcomes across 70 programs to identify efficiencies and potential cost savings.
• 🏛️ Key Takeaway:
  Lawmakers emphasized the need to balance fiscal restraint with maintaining life-safety services, recognizing that cutting provider rates or essential care often shifts costs elsewhere.

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