State Medicaid Director Letter (SMDL #15-003) New Service Delivery Opportunities for Individuals with a Substance Use Disorder

In this document released in July 2015, the federal Centers for Medicare & Medicaid Services (CMS) informed state Medicaid directors about a new opportunity for Medicaid 1115 demonstration projects to ensure that a continuum of settings for behavioral health care is available. CMS described the ability to receive federal Medicaid matching funds for short-term inpatient and residential substance use disorder treatment, including in facilities that meet the definition of an insitution of mental disease (IMD), provided that such coverage complements broader substance use disorder system reforms and specific program requirements.

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