Bill > A08055

This bill proposes to return outpatient mental health and substance use disorder services in New York to a Medicaid fee-for-service model, replacing the current managed care approach. Specifically, the legislation mandates that outpatient mental health services provided at facilities licensed under Article 31 of the Mental Hygiene Law, and outpatient substance use disorder services at facilities licensed under Article 32 of the Mental Hygiene Law, will be administered through fee-for-service in the Medicaid program, subject to federal approval. Additionally, comprehensive Medicaid case management services for individuals with mental illness or substance use disorders will also be transitioned to fee-for-service. The bill requires the Department of Health to reinvest any savings generated from this transition into community-based behavioral health services, including residential services certified by the Office of Addiction Services and Supports. The commissioner must transparently report on these reinvestment funds, which will be included in annual budget itemizations starting April 1, 2026. The changes are set to take effect on October 1, 2025, with the goal of potentially improving access and quality of mental health and substance use disorder services by returning to a fee-for-service payment model.

Health and Social Services

https://www.nysenate.gov/legislation/bills/2025/A8055