# The Medicaid Bump Act: What It Means for Mental Health and Addiction Treatment

This bill makes it easier for states to expand mental health and addiction treatment services by offering them more federal money to do so. Right now, when states spend money on Medicaid (the health program for low-income people), the federal government covers a certain percentage of those costs. This bill creates a special incentive: if a state spends more on behavioral health services—which includes mental health care, substance abuse treatment, and related services—than it did back in 2019, the federal government will cover 90 percent of that extra spending instead of the usual lower percentage. This is a significant boost that could make it much more affordable for states to invest in these services.

The catch is that states have to play by certain rules to get this extra federal money. They can't use it to replace state funding they were already providing—the money has to be genuinely new investment in behavioral health. States also have to use the funds to actually improve services, whether that means paying therapists and counselors more to keep them from leaving for other jobs, hiring more staff, or making the system more efficient. The bill essentially says: if you want this federal money, you have to prove you're using it to make mental health and addiction services better and more available.

The bill would take effect about a year after it's signed into law and would compare state spending going forward against what they spent in early 2019. For people struggling with mental health issues or addiction, this could mean better access to care in their state if lawmakers decide to take advantage of the federal funding. For states, it's an opportunity to strengthen these services without bearing the full financial burden themselves, though they still need to commit their own resources to qualify for the federal match.

Medicaid Bump Act

Tonko, Paul

Medicaid Bump Act This bill increases the Medicaid federal matching rate, also known as the Federal Medical Assistance Percentage (FMAP), for behavioral health expenses that exceed prior levels (i.e., as of March 31, 2019). The Centers for Medicare &amp; Medicaid Services must specify which services are eligible for the increased FMAP. States must use funds to supplement state funding for programs in effect as of April 1, 2021, and to increase the capacity, efficiency, and quality of services.