Medicaid Bump Act

This bill increases federal Medicaid funding for states that expand spending on behavioral health services (mental health and substance use treatment). It creates a new 90% federal reimbursement rate for the *increase* in quarterly state spending on these services compared to the 2019 baseline, provided states use the funds to supplement existing state funding and improve service delivery (e.g., raising provider payment rates). States must report annually to Congress on payment rates, rationale, and service utilization for these programs. The policy directly affects all 50 states administering Medicaid and the providers delivering behavioral health services within those programs. The changes take effect January 1, 2025, following enactment.