CMS Announces New Medicaid Emergency Psychiatric Demonstration Project

by Rebecca Farley on August 12, 2011

The Centers for Medicare and Medicaid Services this week announced the availability of funding for a new emergency psychiatric healthcare demonstration project, authorized under the Affordable Care Act. The demonstration is designed to provide states with enhanced flexibility and resources to care for Medicaid beneficiaries with mental illnesses.

The demonstration project will provide $75 million in federal matching funds to states for Medicaid payments made to private psychiatric hospitals, with 17 or more beds, for inpatient emergency psychiatric care to Medicaid recipients aged 21 to 64. The newly announced demonstration project is designed to explore whether it is feasible and cost effective for Medicaid to cover emergency psychiatric services provided in private psychiatric hospitals.

CMS is now accepting applications to participate in this demonstration from interested State Medicaid Directors. More information, including the solicitation, application and fact sheet can be found online.

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