Friday, December 2, 2022
HomeLatest NewsFederal NewsHHS lifting IMD exclusion for Medicaid payment for inpatient mental health treatment

HHS lifting IMD exclusion for Medicaid payment for inpatient mental health treatment

The Centers for Medicare & Medicaid Services (CMS) in a letter sent to state Medicaid directors Nov. 13 said demonstration projects will be available under section 1115(a) of the Cures Act that will broaden inpatient mental health treatment for Medicaid beneficiaries, reversing a rule known as the “IMD exclusion.” Health & Human Services (HHS) Director Alex Azar also addressed the changes in a speech to the National Association of Medicaid Directors.

“IMD” stands for institutions for mental diseases, and until now the exclusion has prevented Medicaid from paying for treatment in mental health facilities with more than 16 beds. With this latest announcement, states will now be able to apply for waivers from that restriction as long as they are also maintaining robust community-based treatment programs.

In his speech to Medicaid directors, Azar said more than 25 percent of adults with serious mental illness are on Medicaid. He also said that more than 10 million American adults each year experience a serious mental illness and that mental illness cuts lifespans by about 10 years or more.

Stay Connected

Unified Voice Newsletter

Events This Month


02decAll Day032nd Annual Walking Forward Health Forum and Policy Symposium

06dec11:00 am12:00 pmEarly Childhood Comprehensive Systems (ECCS) CollaborativeSDAHO Webinar

07dec12:00 pm1:00 pmRoP Interpretative Guidance: Phase 2 and Phase 3 – Select F-Tag ReviewSDAHO Webinar

08dec11:00 am12:00 pmPain Management & Practice GuidelinesSDAHO Webinar

08dec12:00 pm1:30 pmRural Emergency Hospital Designation: The Known and the UnknownSDAHO Webinar

By submitting this form, you are consenting to receive marketing emails from: SDAHO, 3708 W Brooks Place, Sioux Falls, SD, 57106, You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact