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This bill amends Medicaid law to exclude certain community-based mental health and crisis facilities from the "Institution for Mental Diseases" (IMD) exclusion, which currently prevents Medicaid from covering inpatient services at facilities with more than 16 beds dedicated to mental illness. The bill defines and allows Medicaid coverage for crisis receiving and stabilization facilities (providing 23 hours observation plus 48 hours stabilization) and mental health and substance use urgent care facilities (walk-in crisis assessment and intervention). The bill requires HHS to issue implementation guidance within 180 days and submit a report within one year on utilization, outcomes, and whether these facilities reduce emergency room admissions, psychiatric hospitalizations, and incarceration.
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