Study Medicaid payment rates for MH/SUD services

Parity, Coverage, & Equitable Access
Topics
No items found.
social determinants of health
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Population
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Coverage & Standards
Medicaid
Federal department
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house committees
House Energy and Commerce Committee
senate committees
Senate Finance Committee

Recommendation

Congress should require a U.S. Government Accountability Office (GAO) report comparing Medicaid payment rates for mental health and substance use disorder (MH/SUD) services and medical or surgical services across a sample of states.[1]

Background/summary

Medicaid beneficiaries are disproportionately more likely to experience a MH/SUD than those with private insurance.[2] However, Medicaid beneficiaries access MH/SUD services at lower rates than those with other insurance types.[3] One reason for the disparate access to care may be inadequate reimbursement within state Medicaid programs that disincentivizes providers to accept Medicaid patients.[4] Research shows Medicaid reimbursement rates for MH/SUD remain extraordinarily low, with some providers not having seen increases in rates in 30 years, causing experienced providers to be less likely to accept it and compounding an existing shortage of providers.[4][5] To sufficiently understand this problem and how to address it, Congress should direct the GAO to conduct a study examining Medicaid payment rates for both MH/SUD and physical health services across a sample of states to determine whether MH/SUD services are being reimbursed adequately. In late 2022, a bipartisan group of Senate Finance Committee members supported requiring such a report.[1]

citations

1. Senate Finance Committee. “SFC Bipartisan Mental Health Care Provisions.” Last Accessed May 26, 2022.

2. Saunders, Heather, Robin Rudowitz. “Demographics and Health Insurance Coverage of Nonelderly Adults With Mental Illness and Substance Use Disorders in 2020.” Kaiser Family Foundation. Last Updated June 6, 2022.

3. National Institute of Mental Health. Medicaid Data Show Wide Differences in Mental Health Care in the United States. Last Updated March 23, 2023.

4. Mastroianni, Brain. Why It’s Not Easy to Access Mental Health Care When You’re Covered by Medicaid. Healthline. Last Updated August 19, 2021.

5. National Rural Health Association. Mental health in rural areas. Last Updated February 2022.