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                                                                                            Updated June 4, 2020

Medicare Coverage of Medication Assisted Treatment (MAT)

for Opioid Addiction


Medicare covers certain reasonable and necessary services
provided by Medicare-enrolled health care practitioners for
treating substance abuse disorders, such as alcoholism and
opioid and other drug abuse. Medication Assisted
Treatment (MAT) combines medication with counseling
and behavioral therapies to provide comprehensive
substance abuse treatment. Congress and the federal
government have taken steps to increase the availability of
MAT in response to a sharp increase in U.S. opioid
overdoses and deaths in recent years. Effective January 1,
2020, the Support for Patients and Communities Act
(SUPPORT; P.L. 115-271) added a Medicare benefit
category for treating opioid use disorder, which includes
comprehensive MAT services provided in the roughly
1,700 Substance Abuse Mental Health Services
Administration (SAMHSA)-certified Opioid Treatment
Programs (OTPs), also known as methadone clinics. OTP
services include management, care coordination,
psychotherapy, and counseling, as well as telehealth
services and dispensing and administration of MAT drugs,
including methadone. This brief provides background on
MAT and Medicare coverage of MAT for opioid abuse
treatment.


According to SAMHSA, MAT can provide a safe and
controlled level of medication to help patients overcome or
live with their opioid drug addiction. Research indicates
that opioid use disorder treatment is most effective when
drugs are used in combination with behavioral treatments
and cognitive therapy (to challenge habitual individual
behavior patterns).

The Food and Drug Administration (FDA) has approved
three MAT medications for treating opioid dependence:
methadone, buprenorphine, and naltrexone. Methadone and
buprenorphine are opioid drugs with potential for
dependence but also may be prescribed outside of MAT in
different formulations for treating chronic pain. MAT drugs
help to reduce or block an opioid drug's euphoric effects,
relieve physiological cravings, and normalize body
functions. Experts recommend that all three drugs be
available for MAT because certain medications may be
more appropriate for some patients.

Methadone and buprenorphine are regulated under the
Controlled Substances Act (CSA; 21 U.S.C. §§801 et seq.).
Under the CSA, methadone, when used for treating opioid
abuse, may be administered as part of a hospital admission;
otherwise, this medication may only be administered and
dispensed by OTPs (see Table 1). OTPs may prescribe and
dispense buprenorphine and naltrexone.


The Drug Addiction Treatment Act of 2000 (DATA 2000;
P.L. 106-3 10) allows physicians and certain other health
care practitioners to obtain waivers to treat opioid addiction
by prescribing buprenorphine, but not methadone, outside
an OTP in other health care settings. In May 2016, FDA
approved an implantable buprenorphine product that is
effective for three months, and in November 2017, FDA
approved an injectable formulation that is effective for one
month. Implanted and injected buprenorphine formulations
are administered in physician offices and other outpatient
settings. Other buprenorphine formulations, such as pills,
may be dispensed by retail pharmacies.

Naltrexone, a nonopioid drug, does not carry an addiction
risk and is not regulated under the CSA. Naltrexone may be
prescribed and dispensed in OTPs. It also may be
prescribed by health care practitioners (without DATA
2000 waivers), who are licensed to prescribe drugs, and
then dispensed by pharmacies.

      Table I. MAT Drug Practitioner Authority

        MAT           Practitioners Authorized to
     Medication     Prescribe/Dispense MAT Drugs
                    OTPs    DATA 2000       Other
                             Waiver      Practitioners
    Methadone       Yes        No           No
    Buprenorphine   Yes        Yes          No
    Naltrexone      Yes        Yes          Yes
Source: CRS analysis based on 21 U.S.C. §801.

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The federal Medicare program provides health coverage for
qualified individuals age 65 and older and permanently
disabled individuals about 63 million in 2020. Medicare
benefits are provided through Part A, which covers
inpatient hospital services; Part B, which covers physician
services and other outpatient care; Part C, a managed care
service delivery option that covers Parts A and B benefits
(except hospice care); and Part D, a voluntary optional
benefit that covers outpatient prescription drugs through
private prescription drug plans.

Opioid overutilization is a significant issue in Medicare. A
May 2020 Department of Health and Human Services
Office of Inspector General (HHS OIG) report found that
most of the 71,260 Part D enrollees at serious opioid abuse
risk in 2017 received high opioid doses in 2018. Even
though it appeared fewer of these Part D enrollees were
doctor shopping or receiving extreme opioid doses, they
had what the HHS OIG termed high opioid levels a 120


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