Summary

Removes Medicare's 190‑day lifetime limit on inpatient psychiatric hospital services, so Medicare will no longer bar coverage once a beneficiary has used 190 days in their lifetime. The change applies to items and services furnished on or after January 1, 2027. The amendment modifies the statutory language in the Medicare inpatient hospital coverage provision (42 U.S.C. § 1395d) by deleting the paragraph that imposed the lifetime limit and related cross‑references; it does not create a new payment rate or appropriate additional funds in the text provided.

Key Points

• Eliminates the statutory 190‑day lifetime cap on inpatient psychiatric hospital services in Medicare.
• The change amends 42 U.S.C. § 1395d and removes related cross‑references that treated those days separately.
• The new rule applies to services furnished on or after January 1, 2027.
• The legislation changes coverage eligibility but does not set new payment rates or appropriate additional funds.
• CMS and claims processors will need to update systems, provider guidance, and beneficiary materials.
• Likely to increase access to extended inpatient psychiatric care for Medicare beneficiaries with severe mental illness.
• May increase Medicare program spending for inpatient psychiatric services; the bill includes no budgetary offsets or cost estimates in the text provided.
• Does not alter Medicaid, private insurance benefits, or non‑Medicare federal programs directly.

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