Medicaid Bump Act

The Medicaid Bump Act increases federal Medicaid funding for states that spend more on behavioral health services (including mental health and substance use treatment) than they did in 2019. States qualifying for this new funding must use it to supplement, not replace, existing state spending and must direct funds toward improving service delivery, such as raising provider payment rates to reduce staff turnover. The bill requires the HHS Secretary to issue guidance defining behavioral health services within 180 days and mandates annual reports to Congress on state payment rates, service utilization, and rationales for funding decisions. This policy change directly affects all states administering Medicaid programs and aims to boost access to behavioral health care through enhanced federal support.