CMS Approves Major Medicaid Behavioral Health Demonstration in Washington D.C.

Today CMS announced the approval of a first-of-its-kind Medicaid demonstration project that broadens treatment services available to Medicaid beneficiaries living in the District of Columbia diagnosed with serious mental illness (SMI) and/or serious emotional disturbance (SED).  At the same time, CMS is approving DC’s request to begin providing new services for its beneficiaries diagnosed with substance use disorder (SUD). 

DC’s demonstration is the first in the nation to receive federal approval of the new SMI/SED opportunity. The SMI/SED section 1115 demonstrations will allow state Medicaid programs to overcome a payment exclusion which will allow them to treat individuals with SMI who are short-term residents in settings that qualify as institutions for mental disease (IMD). DC is also taking advantage of CMS’ demonstration opportunity that offers similar flexibilities for Medicaid beneficiaries diagnosed with opioid use disorder (OUD) or other SUDs.

Click here for more information on Washington DC’s demonstration. Read the press release from CMS by clicking here.