Congress Tries Again to Increase Medicaid Spending for Behavioral Health

Federal lawmakers are taking another stab at increasing funding for behavioral health expenditures in the Medicaid program. A version of the Medicaid Bump Act was introduced in the U.S. Senate and Congress on March 12.

The bill would create financial incentives for states to elevate spending on behavioral health beyond levels in 2019. Specifically, it would create an enhanced Federal Medical Assistance Percentage (FMAP) rate of 90% for mental health and substance use disorder (SUD) treatment.

States and their Medicaid programs would not be allowed to use the additional federal money to replace state funding levels. The new funds would be used to increase the capacity, efficiency and quality of behavioral health within Medicaid provider networks, according to a news release.

The bill would charge the Secretary of Health and Human Services (HHS) to define which services qualify as eligible behavioral health services for the enhanced FMAP. It would also enact an annual reporting requirement detailing the impact of the funding increase on behavioral health utilization.