Bipartisan Legislation Aims to Increase Federal Reimbursement for Mental Health Services

U.S. Representatives Paul D. Tonko (D-NY-20) and Brian Fitzpatrick (R-PA-1), along with U.S. Senator Tina Smith (D-MN), have reintroduced the Medicaid Bump Act to increase the federal reimbursement rate for mental and behavioral health care services under Medicaid. The legislation aims to address the massive cuts made to Medicaid under President Trump's Big Ugly Law, which has left countless Americans without access to lifesaving, affordable care.

Key Takeaways:

• The Medicaid Bump Act would increase the federal reimbursement rate for mental and behavioral health care services under Medicaid to 90 percent of the cost.
• The bill would direct the Secretary of Health and Human Services (HHS) to define which services qualify as eligible behavioral health services for the enhanced FMAP.
• The legislation would require HHS to provide annual reports on the impact of increased federal Medicaid reimbursement on the utilization of behavioral health services in each state.
• The bill has the support of 34 organizations, including the American Psychiatric Association, the American Psychological Association, and the National Alliance on Mental Illness.
• Traditionally, states receive federal reimbursement rates between 50 and 75 percent.

Statistics:

• The Medicaid Bump Act would increase federal reimbursement for mental health services by 15-20 percentage points.
• The bill would provide an estimated $5 billion to $10 billion in additional federal funding for mental health services.
• According to the Centers for Disease Control and Prevention (CDC), in 2020, mental health disorders affected 1 in 5 adults in the United States, resulting in approximately 121 million people experiencing some form of mental illness.
• The Substance Abuse and Mental Health Services Administration (SAMHSA) reported that in 2020, an estimated 20 million adults in the United States did not obtain the mental health treatment they needed due to cost constraints.

Sources:

• United States House of Representatives -- Representative Paul Tonko (Capital Region New York)
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• U.S. Representatives Paul D. Tonko (D-NY-20) and Brian Fitzpatrick (R-PA-1), and U.S. Senator Tina Smith (D-MN)
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• The Medicaid Bump Act (text available on the House of Representatives website)