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         S    Congressional                                                     ____
         ~ Research Service






Expiration of 1915(1) Medicaid State Plan

Option



August   3, 2023


Background

Medicaid is a joint federal-state program that finances the delivery of primary and acute medical services,
as well as long-term services and supports, for a diverse low-income population, including children,
pregnant women, adults, individuals with disabilities, and people aged 65 and older.
Medicaid's institutions for mental diseases (IMD) exclusion limits the circumstances under which federal
Medicaid funding to states is available for inpatient behavioral health care. Policymakers have concerns
about the effects of this exclusion on access to behavioral health care, and recent enacted laws and federal
guidance have amended the IMD exclusion.
One of the amendments to the IMD exclusion is a provision in the Substance Use-Disorder Prevention
That Promotes Opioid Recovery and Treatment for Patients and Communities Act (SUPPORT Act; P.L.
115-271), which added a Medicaid state plan option to allow for federal Medicaid funds to be used for
patients at IMDs with substance use disorder (SUD). This Medicaid state plan option is set to expire on
September 30, 2023.


What Is the IMD Exclusion?

The IMD  exclusion is a long-standing policy under Medicaid that prohibits the federal government from
providing federal Medicaid funds to states for services rendered to Medicaid-eligible individuals aged 21-
64 who are patients in IMDs.
IMD  is defined as a hospital, nursing facility, or other institution of more than 16 beds, that is primarily
engaged in providing diagnosis, treatment, or care of persons with mental diseases, including medical
attention, nursing care, and related services. For the definition of IMDs, the term mental disease includes
SUD.




                                                               Congressional Research Service
                                                               https://crsreports.congress.gov
                                                                                    IN12212

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