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Senate orders third reading of bill to expand Medicaid coverage for medically necessary residential SUD and co‑occurring mental‑health treatment

2729322 · March 21, 2025
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Summary

S.36 would require Medicaid to cover medically necessary high- and low-intensity residential treatment episodes for Vermonters with substance‑use disorders and co‑occurring mental‑health conditions, plus a review of Medicaid payment models for residential treatment; the Senate amended and ordered the bill for third reading.

The Vermont Senate on March 20 ordered third reading of S.36, a bill to expand Medicaid coverage for medically necessary residential treatment for people with substance-use disorder (SUD) and co-occurring mental-health conditions, and to require a policy review of Medicaid payment models for residential SUD services.

Major provisions

- Requires the Agency of Human Services to provide coverage for medically necessary high‑intensity, medically monitored residential treatment episodes for Medicaid beneficiaries with SUD and co‑occurring mental‑health conditions, when prescribed by an appropriate licensed health-care professional employed by a participating residential treatment program. -…

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