Melissa Wintrow — Asked whether the funding match would be 70-30 and continued with another question.
Melissa Wintrow — Expressed concern that cutting the program too much could harm providers and staffing.
Melissa Wintrow — Asked whether an immediate cut of about $22 million could set the system backward.
Melissa Wintrow — Asked about the legislative intent language, the audit, and the timing of the $22 million reduction.
Melissa Wintrow — Asked about audit timing and whether the funding reduction would disrupt the system.
Melissa Wintrow — Asked Ms. New to confirm which handout she was referencing.
Melissa Wintrow — Chair recognizes Senator Wintrow's light and asks if she has a question.
Melissa Wintrow — Senator Wintrow asks about the implications of the proposed cut, including whether negative impacts could create legal or other consequences. The witness responds that there are several implications, confirms that Senator Wintrow’s understanding is correct, and adds that a provider could potentially go out of business as a result.
Melissa Wintrow — Senator Wintrow asks about the implications of repealing the rules.
Melissa Wintrow — Senator Wintrow is addressed in the explanation of the rule repeal.
Melissa Wintrow — Senator Wintrow is addressed while the director explains which services are covered.
Melissa Wintrow — Senator Wintrow asks whether the change could lead to cost surveys and rate changes for other services.
Melissa Wintrow — Says she is conflicted about the bill and wishes there were more time to review it.
Melissa Wintrow — Says she is conflicted, wants more time, and asks about the possibility of a substitute motion to get more information.
Melissa Wintrow — Makes a substitute motion to hold the bill in committee subject to the call of the chair.
Melissa Wintrow — Recorded as voting aye.
Sasha O'Connell — Sasha O'Connell, Medicaid Administrator and Deputy Director at the Department of Health and Welfare, explained the funding structure for the KW service array, including the state's $21.8 million general fund share of the $66.6 million total and the approximate 70/30 match with an FMAP around 67. She noted the match timing would need confirmation with LSO, and described why the chairs added cost-surveying and auditing language: current information on provider expenses is limited, and better data would support future appropriation decisions. She said audits could begin right away, though a report would likely take about a year. O'Connell also explained that the $21.8 million would be pulled back from fiscal year 27, requiring rate adjustments starting July 1, and acknowledged that a 10 percentage point reduction could affect providers even though rates would still be about 33% above 2022 levels. She concluded that reporting where the money is going back to the Legislature is essential for making an informed decision.
Sasha O'Connell — Sasha O'Connell, with the Department of Health and Welfare, explains that the rules being repealed are tied to how rates are currently developed, and then indicates she is available to answer Senator Zuiderveld's question and any other related items.
Jody New — Jody New, owner and administrator of Teton Supported Living in Nampa, Idaho, testified that the bill misrepresents prior provider rate increases, which she said were tied to staffing shortages and the COVID emergency rather than the KW lawsuit or budget tool. She explained that the adjustment allowed providers to raise wages and benefits for staff supporting vulnerable adults, and warned that the bill’s funding cuts could force small residential businesses like hers to close and harm services for medically and behaviorally complex clients. She said providers support the audit provision, then referenced budget handouts showing that after staff pay, the proposed cuts would leave very little for overhead.
Ms. New — Ms. New answered questions about employee pay and benefits, explaining that the business would not be able to remain open without further salary cuts and noting that about 10 of the 30 staff members receive health insurance.
Hannah Liebke — Hannah Liebke is introduced as the next virtual testifier, delivers her testimony to the committee on House Bill 863, and is then thanked after concluding her remarks.
Michaela Matlack — Michaela Matlack introduced herself as a CEO of a home and community-based provider and a certified family home caregiver, and testified in support of accountability, a cost survey, and transparency. Her appearance concluded shortly afterward with the committee offering thanks and no questions being raised.
Richie Epnink / Epnick (questionable spelling) — The next virtual testifier is announced as Richie Epnink, with the surname also heard as Epnick.
Richie Eppingk (questionable spelling) — Introduces himself and says he is speaking for himself. States he has been a lead attorney in the KW versus Armstrong litigation since 2012 and says the bill's findings and statement of purpose contain false statements.
Richie Epinick (questionable spelling) — The chair interrupts to say time is up, and the witness finishes by saying the cuts do not affect individual budgets and will not save the money assumed.
Mr. Epping (questionable spelling) — The witness is addressed by name as the senator asks a follow-up question.
Richie Epink (questionable spelling) — Confirms the risk described by Senator Wintrow and references another provider's testimony.
Mr. Ripnik (questionable spelling) — The chair thanks the witness, but the surname is garbled from earlier testimony.
Mr. Maynard — Mr. Maynard is called as a virtual witness, confirms he can hear and begins testimony. He argues that House Bill 863 could undermine stability for Idaho families, workers, and communities by weakening Medicaid-related supports and shifting costs toward more expensive crisis systems. The committee then thanks him and concludes his testimony.
Caitlin Hodges — Caitlin Hodges introduced herself as a participant with Legacy ResHab Services and described her long history of institutionalization in jails, prisons, and hospitals before finally achieving stability in the community. She shared that she now has a driver’s license, a car, her own place, and a job, and noted that she had once been very violent, was associated with 'Katie’s Law,' and wrote an autobiography titled 'Bruised, Not Broken.' She concluded by urging the committee not to cut the budget because it would reduce learning activities and caregiver hours and harm participants’ lives, and she asked permission to say a prayer.
Ms. Hodges — The chair thanks Ms. Hodges after her prayer and testimony.
Sophie Crapo — Sophie Crapo introduced herself and explained that ResHab and staff are essential to her independence and safety. She said they help her engage with the community, develop life skills, manage anger and impulsive behavior, and handle financial responsibilities. She also warned that without this support, her behavioral challenges could lead to placement in a facility.
Angel Leida — Angel Leida introduced herself and explained that she has lived in supportive services since age 28 and has been with Legacy for about five years. She said Legacy helped her get a job, lose a significant amount of weight, and reduce hospital and emergency room visits, and she warned that budget cuts would put people like her in jeopardy and danger.
Tiffany Wood — Tiffany Wood testified that she has been with Legacy for about five years and described it as the best ResHab provider she has had. She said Legacy trains staff to help her build independence at home and in the community, teaching her skills such as budgeting, daily living, household tasks, healthy eating, giving speeches, using a calendar system, and even supporting her through bariatric surgery and weight loss goals. She also said Legacy has provided many community activities and trips, including Disneyland, camping, Las Vegas, kickball, barbecues, holiday parties, dances, and fundraisers, which have helped her make friendships and relationships. Tiffany emphasized that social skills and community involvement are important for everyone, including people with developmental disabilities, and that being included helps others better understand disability and recognize her value as a member of the community. She concluded that none of her progress would have been possible without Legacy ResHab services.
Glenneda Zuiderveld — Senator Zuiderveld is referenced throughout a single discussion about whether supported living providers are collecting both rent and payment. The speaker clarifies that, to their understanding, providers are not collecting both payments and continues addressing Zuiderveld’s question about how rent is handled.
Glenneda Zuiderveld — Senator Zuiderveld was called on during the substitute motion discussion and then recorded as voting aye.
Director O'Connell / Sasha O'Connell — O'Connell answers yes, explaining that all home and community-based services without a Medicare benchmark would be cost surveyed annually.
Brian Lenney — Senator Lenney makes the motion to hold House Bill 863 in committee and begins debate.
Brian Lenney — Senator Lenney argues strongly against the bill, calling it ironic and saying it cuts the oldest Medicaid population to protect expansion population.
Brian Lenney — Senator Lenney continues his criticism, saying the state is using the bill and lawsuit as a politically convenient excuse.
Brian Lenney — Identified as the maker of the motion to hold House Bill 863 in committee.
Brian Lenney — Recorded as voting aye.
Josh Keyser — Senator Keyser is identified as seconding the motion to hold House Bill 863 in committee, then speaks in support of the motion, agreeing with it and arguing that any cuts should come from the expansion population rather than from caregivers for severely disabled residents. He is later referenced again as the member who seconded the same motion.
Carl Bjerke — Senator Bjerke seconded the substitute motion and then voted aye on it.
Camille Blaylock — Recorded as voting aye.
Brandon Shippy — Moved to approve the minutes of February 18, 2026.
Brandon Shippy — Recorded as voting aye.
Mark Harris — The meeting transitions the gavel to Mark Harris, who is identified as the senior member taking over the chair.
Mark Harris — Referenced as the next speaker in the discussion and as supporting the motion to hold the bill in committee.
Mark Harris — Recorded as voting aye on the substitute motion.