How Are Benefits Delivered Under The Medicaid Rehabilitation Option?

The Medicaid rehabilitation option (MRO or rehab option) is the primary authorization path used by states to provide recovery-oriented community-based care to individuals with mental health and substance use disorders. As of 2013, all 50 states and the District of Columbia covered behavioral health services to some extent under the rehab option.

Services included under the rehab option are defined under federal law as “any medical or remedial services (provided in a facility, a home, or other setting) recommended by a physician or other licensed practitioner of the healing arts within the scope of their practice under state . . .