Bill > S08309

This bill aims to return outpatient mental health and substance use disorder services to the Medicaid fee-for-service payment model, replacing the current managed care approach. Specifically, the bill requires that outpatient mental health services provided at facilities licensed under article thirty-one of the mental hygiene law, and outpatient substance use disorder services provided at facilities licensed under article thirty-two of the mental hygiene law, will be administered through a fee-for-service system, subject to federal approval. Additionally, comprehensive Medicaid case management services for individuals with mental illness or substance use disorder will also be transitioned to fee-for-service. The bill mandates that any savings realized from this transition must be reinvested into community-based behavioral health services, including residential services certified by the Office of Addiction Services and Supports. The Department of Health is required to transparently report on these funds, including them in annual budget itemizations starting April 1, 2026. The changes will 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 direct fee-for-service payment model.

Health and Social Services

https://www.nysenate.gov/legislation/bills/2025/S8309