States With SUD IMD Waivers Report Higher Utilization Of Inpatient & Residential SUD Treatment

Six states that implemented Section 1115 waivers covering Medicaid payments to Institutions for Mental Disease (IMDs) for substance use disorder (SUD) treatment reported that higher utilization of inpatient and residential SUD treatment, with some evidence of expanded treatment capacity. Using IMDs as a treatment setting expanded access to services and medications for opioid use disorder (OUD). The six states are California, Indiana, Massachusetts, New Hampshire, Utah, and Washington.

Historically, Medicaid has not reimbursed for services provided to adults in an IMD, which is defined as a facility with more than 16 beds primarily engaged in treating mental health or SUD . . .