Medicaid Bump Act
Bill: S.1727 | Sponsor: Sen. Smith, Tina (D-MN)
Policy area: Health

Summary:
Medicaid Bump Act
This bill increases the Medicaid federal matching rate, also known as the Federal Medical Assistance Percentage (FMAP), for behavioral health expenses that exceed prior levels (i.e., as of March 31, 2019). The Centers for Medicare & Medicaid Services must specify which services are eligible for the increased FMAP. States must use funds to supplement state funding for programs in effect as of April 1, 2021, and to increase the capacity, efficiency, and quality of services.

To amend title XIX of the Social Security Act to provide a higher 
  Federal matching rate for increased expenditures under Medicaid for 
 behavioral health services (including those related to mental health 
              and substance use), and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicaid Bump Act''.

SEC. 2. HIGHER FEDERAL MATCH FOR INCREASED EXPENDITURES UNDER MEDICAID 
              FOR BEHAVIORAL HEALTH SERVICES.

    (a) In General.--Section 1903 of the Social Security Act (42 U.S.C. 
1396b) is amended--
            (1) in subsection (a)(5)--
                    (A) by striking ``an amount equal'' and inserting 
                ``(A) an amount equal''; and
                    (B) by adding at the end the following: ``and
            ``(B) subject to subsection (b)(6), an amount equal to 90 
        percent of the amount by which--
                    ``(i) the sum of the amounts expended during such 
                quarter which are attributable to the offering, 
                arranging, and furnishing (directly or on a contract 
                basis) under the State plan (or under a waiver of the 
                plan) of behavioral health services (including those 
                related to mental health and substance use), exceeds
                    ``(ii) the sum of the amounts expended during the 
                corresponding quarter in the 4-quarter period ending on 
                March 31, 2019, which are attributable to the offering, 
                arranging, and furnishing (directly or on a contract 
                basis) under the State plan (or under a waiver of the 
                plan) of such services, plus''; and
            (2) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(6) Accountability and maintenance of effort requirements 
        for additional federal funding for increased expenditures for 
        behavioral health services.--As conditions for receiving the 
        funds the Secretary is otherwise obligated to pay to a State 
        under subsection (a)(5)(B), a State shall meet the following 
        requirements:
                    ``(A) Supplement, not supplant.--The State shall 
                use the funds received under such subsection to 
                supplement, not supplant, the level of State funds 
                expended for the offering, arranging, and furnishing 
                (directly or on a contract basis) under the State plan 
                (or under a waiver of the plan) of behavioral health 
                services (including those related to mental health and 
                substance use) through programs and activities in 
                effect as of April 1, 2021.
                    ``(B) Use of funds for activities that improve 
                delivery of behavioral health services.--The State 
                shall use the funds received under such subsection for 
                activities that increase the capacity, efficiency, and 
                quality in the provision of behavioral health services 
                (including those related to mental health and substance 
                use) delivered by providers, including through 
                increases in payment rates for providers of those 
                services and the adoption of other measures that ensure 
                a reduction in staff turnover.''.
    (b) Sub-Regulatory Guidance.--Not later than 180 days after the 
date of enactment of this Act, the Secretary of Health and Human 
Services shall issue sub-regulatory guidance to States specifying the 
services that are behavioral health services for purposes of 
subparagraph (B) of section 1903(a)(5) of the Social Security Act (42 
U.S.C. 1396b(a)(5)), as added by subsection (a).
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to calendar quarters beginning on or after January 1 
of the year beginning after one year after the date of the enactment of 
this Act.

SEC. 3. REPORT REGARDING BEHAVIORAL HEALTH SERVICE.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Secretary of Health and Human Services shall 
submit to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Finance of the Senate a report 
regarding behavioral health services (including those related to mental 
health and substance use) provided under title XIX of the Social 
Security Act (42 U.S.C. 1396 et seq.) in each State, specifying the 
payment rates for such services, the rationale for deriving such 
payment rates, and utilization of such services, as such data are 
available.
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