Nebraska DHHS seeks CMS approval to add psychiatric IMD stays and medical respite to Medicaid 1115 waiver

The Nebraska Department of Health and Human Services (DHHS) on Tuesday told the Legislature’s Health and Human Services Committee it plans to submit an amendment to its Section 1115 Medicaid demonstration waiver to allow two new services: short-term stays in institutions for mental disease for people with serious mental illness or serious emotional disturbance, and Medicaid payment for medical respite facilities for people without stable housing.

DHHS Director Drew Gonshorowsky, director of the Division of Medicaid and Long‑Term Care, told the committee the IMD authority would permit coverage for psychiatric hospital stays of up to 60 days for beneficiaries in crisis, and that the respite service would provide a place for people experiencing homelessness to recuperate after discharge from medical facilities. "We anticipate that providing this service will allow people undergoing a crisis to receive prompt quality care in an appropriate setting," Gonshorowsky said.

The department said it expects the IMD authority to take effect Jan. 1, 2026, and medical respite to be effective April 1, 2026, if approved…