Bill > A08055

This bill aims to shift certain mental health and substance use disorder services back to a "fee-for-service" model within the Medicaid program, meaning providers will be paid directly for each service rendered rather than through a managed care plan. Specifically, it proposes to return outpatient mental health services, outpatient substance use disorder services, residential services, and rehabilitation services to this fee-for-service system, requiring federal approval. This change applies to services provided at facilities or clinics licensed under specific articles of the Mental Hygiene Law, or those dually licensed under the Public Health Law, and also includes comprehensive Medicaid case management for individuals with mental illness or substance use disorder. Furthermore, the bill mandates that any savings realized from this transition from managed care to fee-for-service be reinvested to increase funding for community-based behavioral health services and residential and rehabilitation services certified by the Office of Addiction Services and Supports, with information on these reinvested funds to be publicly available on the Department of Health's website starting April 1, 2027.

Health and Social Services

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