Medicaid Bump Act

This bill boosts Medicaid funding for mental health and addiction care. The federal government would pay 90% of any new state spending on these behavioral health services above what the state spent in the four quarters ending March 31, 2019. This is meant to help states expand access to counseling, treatment, and related supports.

States can’t use this money to replace their own funds; it must add to what they were already spending as of April 1, 2021. The money must go toward improving services, like raising provider pay and reducing staff turnover to strengthen the workforce. The health department must issue guidance within 180 days to spell out which services count. The changes start with calendar quarters beginning on January 1 after one full year has passed since the law is enacted. The department must also report every year on payment rates, why those rates were set, and how much these services are used.

• Who is affected: Medicaid patients who need mental health or substance use care; behavioral health providers; state Medicaid programs.
• What changes: A 90% federal match for increased state spending; funds must supplement existing state dollars and be used to improve access, quality, and staffing; annual federal reports on rates and use.
• When: Guidance due within 180 days; funding change begins January 1 after one full year post-enactment; annual reports start one year after enactment.