House committee unanimously approves waiver bill to fund respite care for youth at risk of out-of-home placement

Representative Dempsey introduced House Bill 1238 as a narrow measure designed to close a gap identified by a study committee in placing children and adolescents after hospital or psychiatric residential treatment discharge. The bill would require the Department of Community Health to submit a Medicaid waiver request by Dec. 31, 2026, to allow Medicaid reimbursement for respite care and related services for people under age 21 at risk of out-of-home placement.

"This is truly a simple bill to fix a big problem," Representative Dempsey said, describing study findings that some youth face long waits—about six months, she said—for placement when an "abandonment" clause complicates discharge planning. Dempsey and committee members framed the measure as a tool both to help families keep young people at home and to reduce financial burdens on hospitals and residential treatment facilities.

Stuart Portman, executive director of the Medical Assistance Plans…