The Rehabilitation and Recovery During Incarceration Act would allow states to use Medicaid and the Children's Health Insurance Program (CHIP) to pay for mental health and substance use disorder treatment for incarcerated individuals, a population currently excluded from these programs. Under the bill, states could voluntarily cover these services for inmates who were previously eligible for Medicaid or CHIP or who become eligible while incarcerated. To encourage participation, the federal government would cover 100 percent of the costs for these specific services, a significantly higher match than the typical Medicaid and CHIP reimbursement rates. States receiving this enhanced federal funding would be required to reinvest those dollars in improving health information sharing between prisons and community providers, expanding treatment capacity, and enhancing reentry services for formerly incarcerated individuals. The bill would take effect on January 1, 2023, and requires a report to Congress within five years on how many incarcerated individuals receive treatment, the quality of care provided, and whether the program affects recidivism rates.