This bill would remove the "Institutions for Mental Diseases" exclusion from Medicaid, which currently prevents federal Medicaid funds from paying for mental health and substance use treatment services at certain psychiatric facilities for most patients. Currently, this exclusion primarily applies to patients under 65 years old, while seniors can receive some coverage; the bill would eliminate this age restriction entirely and allow Medicaid to cover treatment at these facilities for patients of all ages. To ensure quality care, the legislation requires that any facility receiving Medicaid funding must meet nationally recognized, evidence-based standards for mental health and substance use disorder treatment, including specific requirements around staffing credentials, hours of clinical care, and types of services offered. The changes would take effect 180 days after the bill becomes law, allowing states time to adjust their Medicaid programs accordingly. This reform is intended to expand access to mental health treatment by allowing federal Medicaid dollars to support a broader range of mental health facilities and their services.
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