Relates to outpatient mental health, substance use disorder, residential and rehabilitation services and Medicaid fee-for-service

This bill shifts outpatient mental health and substance use disorder services under New York's Medicaid program from a managed care model back to traditional fee-for-service billing, requiring federal approval. It directly affects Medicaid beneficiaries receiving these services and the providers (licensed facilities, clinics) delivering them. Key provisions mandate that these services be administered under fee-for-service, with savings from the transition required to be reinvested into community-based behavioral health services starting in 2026. The change takes effect October 1, 2025, and applies to services for individuals with mental illness or substance use disorders.