Assemblywoman Tracy Brown May presented Assembly Bill 514, a bill that would authorize Nevada Medicaid to seek federal approval and reimbursement for rehabilitative behavioral-health services supporting short-term residential treatment and similar community-based care for individuals with acute behavioral-health needs.

Nevada Medicaid staff outlined the fiscal estimate and implementation approach. Anne Jensen, agency manager at Nevada Medicaid, told the committee that if federal approval is granted the state general-fund cost would be approximately $30,800 in FY26 and $551,899 in FY27, with federal matching funds estimated at $1,722,337 across the biennium. The draft fiscal note anticipates a higher one-time state general‑fund share in FY27 because of program ramp-up and facility development timing.

"The state general fund share would be utilized from the Health Care Access Fund under the conceptual amendment," Jensen told the committee, adding that the initiative is conditional on federal approval and that the federal match would significantly offset state costs.

Why it matters: Supporters said the approach will help provide alternatives to hospitalization or prolonged detention for people with severe behavioral-health needs and can help Nevada respond to Department of Justice settlement obligations related to provision of community-based mental‑health services.

Public testimony and next steps
No public opposition was recorded at the hearing. Committee members asked for clarifying detail on the timing and how federal matching is drawn down; Medicaid staff said the federal match is drawn as the state spends and ramps the program, leading to higher federal shares in the latter part of the biennium.

Ending: The committee heard technical and fiscal details from Medicaid and will consider conceptual amendments that specify funding sources and conditions for implementation; further action depends on federal approval and program development.