Medicaid Bump Act

HR 4892, the Medicaid Bump Act, increases federal funding for states that expand Medicaid spending on mental health and substance use services. It provides states with 90% federal reimbursement for spending above 2019 baseline levels on these services, requiring states to use new funds to supplement (not replace) existing state funding and improve service delivery through better provider payments and reduced staff turnover. The bill mandates HHS to issue guidance within 180 days defining "behavioral health services" and requires annual reports to Congress on payment rates, service utilization, and the rationale for payment rates. This directly affects state Medicaid programs and providers offering mental health and substance use services.