Bill > S08309

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 by Medicaid 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, as determined by the commissioners of the Office of Mental Health and the Office of Addiction Services and Supports, to this fee-for-service system, provided federal approval is obtained. This change applies to services provided at licensed facilities or clinics, including those dually licensed under both mental hygiene and public health laws. Additionally, comprehensive Medicaid case management services for individuals with mental illness or substance use disorder will also move to fee-for-service. The bill also mandates that any savings realized from this transition from managed care to fee-for-service will be reinvested into community-based behavioral health services and residential and rehabilitation services, with information on these funds to be made publicly available and included in annual budget itemizations starting April 1, 2027. The changes are set to take effect on October 1, 2026.

Health and Social Services

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