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CMS Accepting Applications for new Medicaid Emergency Psychiatric Demonstration

Friday, September 02, 2011

CMS recently announced they are accepting applications from States to participate in the new Medicaid Emergency Psychiatric Demonstration, authorized by the ACA. Up to $75 million in funding is available to States over 3 years. The demonstration will allow selected States to provide payments to private psychiatric hospitals with 17 or more beds, known as Institutions of Mental Disease (IMD), for providing inpatient emergency psychiatric care to Medicaid recipients between 21 and 64. Current Medicaid rules do not permit States to claim FFP for services provided to adult Medicaid recipients in IMDs.