Increasing Behavioral Health Treatment Act
Sponsored By: Representative Carbajal
Introduced
Summary
Removes Medicaid's ban on covering care in institutions for mental diseases for people under 65 while forcing states to expand outpatient and crisis services. The bill would let Medicaid pay for inpatient and residential psychiatric care for adults under 65 only when a state submits a plan to grow community treatment and report progress each year.
Show full summary
- Families and patients: Adults under 65 with serious mental illness or substance use crises could become eligible for Medicaid-covered treatment in psychiatric hospitals and residential settings. States must also ensure screening and treatment for co-occurring physical and substance use conditions and plan for outpatient follow-up, including medication-assisted treatment after discharge.
- States and providers: States would have to include a detailed plan in their Medicaid state plan and provide annual reports on costs, utilization, lengths of stay, and post-discharge outpatient care. The plan must show steps to expand crisis stabilization and community-based services like intensive outpatient care and Certified Community Behavioral Health Clinic models.
- Crisis systems and coordination: The bill requires expanded crisis capacity such as crisis call centers, mobile crisis teams, observation or assessment centers, and better data sharing between health providers and first responders to improve transitions from institutional care.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 0 costs, 1 mixed.
Medicaid mental health stays for under 65
If enacted, Medicaid could pay for care in Institutions for Mental Diseases (IMDs) for people under 65. This means inpatient mental health and residential treatment stays could be covered. The change would take effect on the date of enactment.
States must expand behavioral health care
If enacted, State Medicaid plans would have to expand outpatient and community behavioral health care for people served in IMDs. States would grow crisis services like call centers, mobile crisis teams, community response with first responders, and follow‑up supports. They would improve data sharing, screen for co‑morbid physical and substance use issues, and use least‑restrictive, clinically right care. States would file yearly reports on costs and use by facility type, how many people got help, IMD stay lengths, and post‑discharge care such as medication‑assisted treatment. These rules would start on enactment, but a state that needs new laws would have until after its next regular session (each year counts in a two‑year session).
Sponsors & CoSponsors
Sponsor
Carbajal
CA • D
Cosponsors
Bacon
NE • R
Sponsored 6/17/2025
Fitzpatrick
PA • R
Sponsored 6/23/2025
Levin
CA • D
Sponsored 8/1/2025
Brownley
CA • D
Sponsored 8/22/2025
Barragan
CA • D
Sponsored 9/3/2025
Roll Call Votes
No roll call votes available for this bill.
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