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Committee approves amendment to S.36 to add 'medically necessary' standard for Medicaid-funded residential substance use stays

2695062 · March 19, 2025
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Summary

The Appropriations Committee moved S.36 to the floor after adding language that ties Medicaid payment for residential substance use treatment to a 'medically necessary' determination and asks AHS for a report on payment structures.

The Senate Appropriations Committee on March 19 voted to move S.36 to the floor with an amendment adding the phrase "medically necessary" to the bill's definition of episode-based Medicaid payments for residential substance use treatment when a co-occurring mental health disorder is present.

Katie McGlenn of the Office of Legislative Counsel explained the bill's purpose to…

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