Improving Mental Health and Drug Treatment Act of 2023

HR 3892, the Improving Mental Health and Drug Treatment Act of 2023, permanently allows Medicaid coverage for individuals with serious mental illness or substance use disorders in certain residential facilities (previously limited to a temporary 2019-2023 period). It extends the maximum stay in these facilities from 30 to 45 days and requires states to establish standards for appropriate care placement and a review process for facility compliance. States must also conduct a one-time assessment within 12 months of approval to evaluate treatment availability across care levels and medication-assisted treatment services. This bill directly affects Medicaid programs, states administering them, and individuals receiving care in qualifying residential facilities for mental health and substance use disorders.