More behavioral health providers eligible for Medicaid dollars: 3 things to know

CMS will allow more types of behavioral providers to receive Medicaid funding. 

In a letter sent to state Medicaid directors Feb. 26, the agency said it would expand the pool of behavioral health providers eligible for enhanced Medicaid dollars to include those with Master of Social Work or other master's-level behavioral health degrees. These providers include marriage and family therapists and licensed mental health counselors. 

"During a time when the country is facing an unprecedented behavioral health crisis, it is essential that state Medicaid agencies have every tool available to meet the needs of their beneficiaries," CMS said in its letter to state Medicaid directors. 

Here are three things to note: 

1. Previously, behavioral health providers with MSW degrees were only provided enhanced Medicaid reimbursement if they had completed specialized medical tracks. 
2. The agency implemented similar rules expanding the types of providers eligible for Medicare dollars at the beginning of 2024. 
3. CMS also announced increased funding for nurse advice lines for Medicaid beneficiaries and an additional $37 million in grants to behavioral health programs across the country. 

Read more here.