Increasing Behavioral Health Treatment Act

The Increasing Behavioral Health Treatment Act removes a Medicaid exclusion that previously blocked coverage for behavioral health services for individuals under 65 in psychiatric hospitals (also called "institutions for mental diseases"). It requires states to submit detailed plans to the federal government outlining how they will expand outpatient and community-based care for people transitioning from these facilities, including improved crisis services like mobile units and observation centers. States must also report annually on costs, patient outcomes, and the types of outpatient treatment provided after discharge, with specific requirements for coordinating care between health providers and first responders. This policy change directly affects Medicaid beneficiaries under 65 in psychiatric hospitals and state Medicaid programs, aiming to shift care toward less restrictive community settings.