CHA News Article

CMS Medicaid Demonstration Increases Flexibility for Mental Health Care Delivery

The Centers for Medicare & Medicaid Services (CMS) this week announced a new Medicaid demonstration that will provide opportunities for states to design innovative service delivery systems for adults with serious mental illness and children with serious emotional disturbance.

The demonstration will allow for short-term residential treatment services in an Institution for Mental Disease (IMD) through Section 1115 waivers. While CMS has approved 17 state waivers — including one for California — to pay for IMD treatment for substance use disorders, the new guidance will allow states to pursue waivers to pay for community and residential treatment services for the full continuum of mental health and substance use disorders. CHA is currently reviewing the guidance and is in communication with the Department of Health Care Services to learn more about the state’s analysis.