Montana plans July 1 rollout of HR1 community‑engagement checks; DPHHS hiring 59 eligibility staff

DPHHS officials outlined operational plans to implement HR1 community‑engagement (CE) requirements for the Medicaid expansion population beginning July 1, 2026. Jesse Counts, who leads HR1 work at the department, said the agency will phase implementation: cases with renewals initiated in July–September will receive education and warning notices first, with no immediate disenrollment; DPHHS will begin disenrollments for noncompliance for renewals starting in October after a 30‑day cure period required by federal rules, and the first potential month of lost coverage would be January 2027.

For new applications filed July–September 2026 the department will evaluate CE as part of eligibility but will initially issue informational notices rather than denials; starting October 1 the agency will deny new applications that do not meet CE requirements. Mr. Counts said Montana will align Medicaid redetermination workload with SNAP where possible, leverage ex parte reviews and the integrated eligibility system (CHIMEs), and send universal notices and on‑line material to all Medicaid recipients in advance of the changes.

To handle the increased workload, DPHHS has budgeted and begun hiring 59 new client‑service coordinator positions (39 filled as of the report) with an estimated first‑year cost of about $4.3 million; training for new hires is about four months per cohort. The department will refer members who need help to the HelpLink program and said it is establishing beneficiary and provider outreach channels. Jesse Counts said DPHHS intends to file a state plan amendment with CMS rather than a demonstration waiver after CMS guidance and will continue consulting federal partners.

Legislators and public commenters pressed DPHHS on operational readiness: Montana’s ex parte renewal rate and application processing times lag national medians, and stakeholders warned that rapid implementation raises the risk of coverage loss and increased demand on community services. DPHHS committed to additional stakeholder outreach, public notices, and technical assistance for community partners before full enforcement.