Appropriations advances S.36 to align Medicaid payment with clinically prescribed residential substance‑use episodes and orders multiple reports

The House Appropriations Committee voted 11–0 on April 22 to move S.36, a bill that would direct Medicaid reimbursement for medically necessary residential substance‑use disorder treatment episodes and add multiple reporting and presentation requirements to the legislative committees overseeing health and human services.

Katie McQuinn of the Office of Legislative Counsel told the committee that the bill’s first two sections are nearly identical: one covers medically monitored high‑intensity residential treatment for substance use disorder with co‑occurring mental health conditions and the second covers clinically managed low‑intensity residential treatment. Both sections would require that Medicaid provide coverage for the entire length of stay prescribed by a healthcare professional employed by a residential treatment program that participates in Vermont’s Medicaid program.

McQuinn said the bill contemplates episodic reimbursement — historically averaged at about 14 days — but that an episode could be shorter or longer depending on clinical…