# Understanding the Increasing Behavioral Health Treatment Act

Right now, Medicaid has a rule that prevents it from paying for mental health treatment at certain psychiatric hospitals and mental health facilities. This bill removes that restriction, which means Medicaid can now help pay for mental health care at these institutions. The catch is that states have to show they're actually building up community-based mental health services—like crisis hotlines, mobile crisis teams, and outpatient clinics—so people don't end up stuck in hospitals when they could be treated in their communities instead.

For everyday people, this could mean better access to mental health treatment if you're on Medicaid. If you're struggling with a serious mental illness, depression, anxiety, or a substance use disorder and need inpatient psychiatric care, Medicaid can now help cover those costs. But the bill also requires states to invest in alternatives to hospitalization, like crisis centers and community mental health programs. This is important because research shows people generally do better when they're treated in their communities rather than in institutions, and it's often less expensive too.

States will need to submit plans showing how they're expanding these community services and tracking their progress. They'll also have to report data on how many people are using these services, how long they stay in psychiatric hospitals, and what kind of follow-up care they receive after discharge. The goal is to make sure that when people do need psychiatric hospitalization, they get it, but they're also connected to ongoing support in their communities to help them stay healthy and avoid returning to the hospital. This applies to people of all ages, not just seniors, which expands who can access this help compared to current rules.

Increasing Behavioral Health Treatment Act

Napolitano, Grace F.

Increasing Behavioral Health Treatment Act This bill repeals restrictions that generally prohibit federal payment under Medicaid for services provided in institutions for mental diseases (IMDs) for individuals under the age of 65. (Currently, states may receive payment for such services through certain mechanisms, such as through a Medicaid demonstration waiver.) The bill also requires state Medicaid programs that cover IMD services to improve patient access to outpatient and community-based behavioral health care, expand crisis stabilization services, facilitate care coordination between providers and first responders, and report specified information relating to IMD utilization and costs.