(42 U.S.C. 1396n) is amended by adding at the end the 
following new subsection: 
‘‘(m) ADDITIONAL STATE PLAN AMENDMENT OP-
TION TO PROVIDE MEDICAL ASSISTANCE FOR CERTAIN 
INDIVIDUALS WHO ARE PATIENTS IN CERTAIN INSTITU-
TIONS FOR MENTAL DISEASES.— 
‘‘(1) IN GENERAL.—Subject to the succeeding 
paragraphs of this subsection, with respect to cal-
endar quarters beginning on or after January 1, 
2025, a State may elect, through a State plan 
amendment, to provide medical assistance for items 
and services furnished to an eligible individual who 
is a patient in an eligible institution for mental dis-
eases in accordance with the requirements described 
in paragraphs (3) through (7) of subsection (l). 
‘‘(2) PAYMENTS.— 
‘‘(A) IN GENERAL.—Subject to paragraphs 
(3) and (4) of subsection (l) as applied to a 
State plan amendment under paragraph (1), 
amounts expended under such a State plan 
amendment for services described in such para-
graph furnished, with respect to a 12-month pe-
riod, to an eligible individual who is a patient 
in an eligible institution for mental diseases 
shall be treated as medical assistance for which 
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payment is made under section 1903(a), but 
only to the extent that such services are fur-
nished for not more than the period of medical 
necessity determined under subparagraph (B) 
with respect to such eligible individual during 
such 12-month period. 
‘‘(B) PERIOD OF MEDICAL NECESSITY.— 
For purposes of subparagraph (A), with respect 
to an eligible individual, the period of medical 
necessity— 
‘‘(i) is the number of days (both con-
secutive and nonconsecutive) that treat-
ment in an eligible institution for mental 
diseases is determined, in a manner speci-
fied by the Secretary, to be in accordance 
with the most recent evidence-based cri-
teria developed by a nonprofit medical as-
sociation with expertise in substance use 
disorder treatment, such as the American 
Society of Addiction Medicine; and 
‘‘(ii) shall be redetermined at a fre-
quency specified by the Secretary, but in 
no case less frequently than every 30 con-
secutive days during which such eligible in-
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dividual is a patient in an eligible institu-
tion for mental diseases. 
‘‘(3) TEMPORARY ENHANCED FMAP.—Notwith-
standing section 1905(b), for each fiscal quarter 
during the first 5 years that a State plan amend-
ment elected under this subsection is in effect, the 
Federal medical assistance percentage applicable to 
payments under this subsection shall be equal to 90 
percent. 
‘‘(4) CLARIFICATION WITH RESPECT TO INPA-
TIENT AND RESIDENTIAL SERVICES.—For purposes 
of a State plan amendment elected under this sub-
section, paragraph (4)(C)(ii) of subsection (l) shall 
be applied by substituting the following for sub-
clause (IV): 
‘‘ ‘(IV) Medically managed, high- 
intensity residential services for ado-
lescents, and medically managed, in-
tensive residential services (including 
withdrawal management) for adults, 
that provide 24-hour nursing care, 
make physicians available for signifi-
cant problems in Dimensions 1, 2, or 
3, and provide comprehensive psycho-
social services.’. 
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‘‘(5) PLANNING GRANTS.— 
‘‘(A) IN GENERAL.—Beginning January 1, 
2025, the Secretary may award planning grants 
to States for purposes of developing and imple-
menting a State plan amendment under this 
subsection, including through the funding of ap-
propriate tools and training. A planning grant 
awarded to a State under this paragraph shall 
remain available until expended. 
‘‘(B) APPLICATION.—To be eligible to re-
ceive a planning grant under this paragraph, a 
State shall submit to the Secretary an applica-
tion in such form and manner as the Secretary 
shall specify. 
‘‘(C) LIMITATION.—The total amount of 
payments to States under this paragraph shall 
not exceed $25,000,000. 
‘‘(6) ELIGIBLE INDIVIDUAL DEFINED.—In this 
subsection, the term ‘eligible individual’ means an 
individual who— 
‘‘(A) with respect to a State, is enrolled for 
medical assistance under the State plan or a 
waiver of such plan; 
‘‘(B) has not attained 65 years of age; and 
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‘‘(C) has at least 1 substance use dis-
order.’’. 
(b) CHILDREN’S HEALTH INSURANCE PROGRAM.— 
Section 2107(e)(1) of the Social Security Act (42 U.S.C. 
1397gg(e)(1)) is amended by adding at the end the fol-
lowing new subparagraph: 
‘‘(V) Section 1915(m) (relating to the 
State option to provide medical assistance for 
individuals who are patients in an eligible insti-
tution for mental diseases).’’. 
Æ 
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