Rehabilitation and Recovery During Incarceration Act

This bill allows states to provide mental health and substance use disorder services to incarcerated individuals who were previously eligible for Medicaid or CHIP coverage before incarceration. It amends Medicaid and CHIP rules to permit states to cover these services for "eligible inmates" (those who were Medicaid/CHIP-eligible before incarceration or become eligible while incarcerated), with the federal government covering 100% of the costs for these services. States must reinvest the additional federal funds into improving health data systems, expanding community-based treatment capacity, and enhancing reentry services for formerly incarcerated people. The bill also requires a 5-year report tracking outcomes like access to care, post-release enrollment, and potential impacts on recidivism.