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This bill allows states to choose whether to extend Medicaid coverage for children in foster care who are receiving treatment at qualified residential treatment programs. Currently, some foster children may lose Medicaid eligibility when placed in these specialized treatment facilities, which can create gaps in their health coverage during critical care periods. Under this legislation, states that opt in would keep these children covered by Medicaid throughout their treatment and while remaining in foster care, including coverage for medical services received outside the treatment facility itself. The federal government would reimburse states for the costs of providing this extended Medicaid coverage. The bill does not specify a timeline for implementation or dedicated federal funding, leaving it to states to decide whether to participate in this optional program.

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