CHA News Article

Medicaid Directors Call for Elimination of IMD Exclusion

The National Association of Medicaid Directors (NAMD) earlier this month sent a letter to the Senate Health, Education, and Pension Committee offering recommendations for increasing Medicaid’s effectiveness in delivering and funding mental health services. The letter strongly supports eliminating the exclusion policy for Medicaid Institutions for Mental Disease (IMD), which prohibits Medicaid funds from being used to pay for medically necessary inpatient care for people ages 21 to 64 who reside in IMDs. “The policy leaves adults with severe mental illness as the sole category for whose inpatient care Medicaid will not reimburse except under circumstances which narrowly limit choice, and likely compromise quality,” the letter states. “Not only is this outdated policy discriminatory, it also impedes advancement of the federal and state government’s policy priorities and preferred delivery system structures.”