Medicaid Bump Act

S 2410, the Medicaid Bump Act, increases federal funding for states that raise spending on Medicaid-covered behavioral health services (including mental health and substance use treatment) above 2019 baseline levels. It provides a 90% federal match for the amount exceeding that baseline, requiring states to use these funds to supplement, not replace, existing state funding for these services. States must also use the funds to improve service delivery, such as through higher provider payments or reducing staff turnover. The bill mandates annual reports to Congress on payment rates, service utilization, and the rationale for payment rates for these services. This directly affects state Medicaid programs and providers delivering behavioral health services.