Increasing Mental Health Options Act of 2026

The Increasing Mental Health Options Act of 2026 expands Medicare coverage and oversight rules to include clinical psychologists in rural and underserved areas. Starting in 2026, clinical psychologists working in designated health professional shortage areas will receive an additional 10 percent payment for services provided to Medicare beneficiaries. The bill also removes certain federal restrictions that previously limited the types of care clinical psychologists could provide in outpatient rehabilitation, skilled nursing, partial hospitalization, home health, and inpatient psychiatric settings. These changes allow psychologists to supervise or provide care directly in these facilities as long as state laws permit it, while maintaining existing requirements for consultation with physicians.