Ensuring Medicaid Continuity for Children in Foster Care Act of 2026

This bill would allow children in foster care who are placed in qualified residential treatment programs to receive Medicaid coverage for their medical services. It directly affects state child welfare systems and healthcare providers by removing a federal exclusion that currently prevents Medicaid from covering institutional care for these children. The law amends the Social Security Act to exempt these children from the Medicaid Institutional Medicaid Days (IMD) exclusion, which typically denies coverage for services provided in institutions. The change would take effect for services provided on or after October 1, 2026, ensuring continuity of healthcare coverage for this vulnerable population.