The Legislature established the Department of Public Welfare in 1937, consolidating state welfare activities. The Department was responsible for the administration of all forms of public assistance, including general relief programs and supervision of institutions caring for the dependent, delinquent, or mentally or physically handicapped. In 1971 the Department of Public Welfare was abolished and its functions assumed by the newly created Department of Social and Rehabilitation Services (SRS). The SRS assumed the functions of various state agencies, including functions pertaining to vocational rehabilitation and education; the Commission on Aging; and the Council on Human Resources. The SRS administered all forms of public assistance, child protection, and child welfare; gave consultant service to private institutions providing care for the needy, indigent, handicapped, or dependent; developed provisions for services to the blind; supervised county boards of public welfare; and administered all funds allotted for public welfare activities. State government reorganization in 1995 combined the SRS with portions of the Department of Health and Environmental Sciences to form the Department of Public Health and Human Services.

As the agency that administers Medicaid in Montana, the Department of Public Health and Human Services is required by federal regulation to have a council to advise the Department Director, the State Medicaid Director, and Medicaid Administrators about health and medical care services.

The Montana Health Care Coalition is made up of members appointed by the Department Director. Members serve two-year terms, and are selected to represent health professionals (including at least one physician) and Medicaid consumers (including at least one representative). The coalition meets at least annually, and is chaired by the State Medicaid Director, or a designee.