CMS Proposes 2.4% Hike & Explores Star Ratings, Electronic Patient Assessments in FY 2026 IPF PPS Rule
Written by Meghan Barrett on . Posted in Analysis, News & Insights.
The Centers for Medicare & Medicaid Services (CMS) recommended a host of payment and quality program changes for fiscal year (FY) 2026 in the proposed inpatient psychiatric facility prospective payment system (IPF PPS) rule the agency released on Friday, April 11.
As NABH reported to members in an alert late Friday, the proposed rule recommends increasing FY 2026 rates for inpatient psychiatric hospitals and units by 2.4% ($70 million), relative to FY 2025 levels, which accounts for a 3.2% market basket update that would be offset by 0.8 percentage point productivity adjustment.
Proposed Payment Changes
This annual IPF PPS update also proposes changes to other PPS components, including:
- Outliers: To maintain the outlier pool at the current level of 2.0% of total payments, CMS proposes increasing the high-cost threshold from $38,110 to $39,360. This change will slightly reduce the number of IPF claims that qualify for an outlier payment.
- Labor Costs: The labor-related share would slightly increase from 78.8% t to 78.9%, which indicates a slight rise in labor costs, relative to all other costs.
Facility-based adjustments: Medicare payments for IPF patients factor in multiple facility-level characteristics including local wages, rural status, teaching hospital status, the presence of a qualifying emergency department. This rule proposes two budget-neutral changes to current facility level adjustments:
Rural: Based on its analyses of more recent Medicare claims and cost reports from 2020 through FY 2022, the agency promises to increase the rural adjustment to 18%. This increase from the current 17% adjustment, which has been in effect since this PPS was established, recognizes an 18% differential in per diem costs, relative to non-rural IPFs. This budget neutral change would be implemented by using funds that are otherwise used for IPF PPS payments.
Teaching: For FY 2026, CMS proposes to increase the teaching adjustment from 0.5150 to 0.7981, to account for the estimated higher indirect operating costs. This proposal also is based on analyses of the new cost data from FY 2020 through FY 2022. Similarly, this change would be implemented in a budget-neutral manner.
Finally, we note that for other hospital proposed rules for FY 2026 CMS issued on April 11, the proposed annual updates were generally in line with the proposed IPF PPS update, with a 2.4% update proposed for general acute-care hospitals and 2.6% proposed for long-term care hospitals. This range of proposed updates stands in stark contrast to the 5 percentage-point increase for 2026 that CMS recently finalized for Medicare Advantage plans— a disparity that we will stress in our comments to CMS.
Proposed Quality Reporting Changes
While the NABH Quality Committee will help develop our comments on the quality-measurement proposals in the rule, NABH urges all its members to contact CMS and explain how these changes would affect patient care and your organization’s overall operations.
Proposed Quality Measure Removal
The agency proposes removing these four quality measures, which are currently set to affect FY 2026 payments:
- Facility Commitment to Health Equity,
- Covid–19 Vaccination Coverage among Health Care Personnel,
- Screening for Social Drivers of Health, and
- Screen Positive Rate for Social Drivers of Health.
As part of its rationale for these proposed removals, CMS noted the costs associated with achieving a high score outweigh their benefit especially because these “structural measures” do not directly measure clinical outcomes. Further, the rule cites as a benefit the associated reduction in annual costs per IPF for implementing these measures.
Proposed New Measures
CMS seeks guidance from stakeholders on how to design these new measures:
- Nutrition: CMS asks how to consider assessing individual nutritional status using various strategies, guidelines, and practices designed to promote healthy eating habits and ensure individuals receive the necessary nutrients for maintaining health, growth, and overall well-being. This also includes aspects of health that support or mediate nutritional status, such as physical activity and sleep. In this context, preventable care plays a vital role by proactively addressing factors that may lead to poor nutritional status or related health issues.
- Wellbeing: CMS requests comments about designing a well-being measure that reflects a comprehensive approach to disease prevention and health promotion, as it integrates mental, social, and physical health while emphasizing preventive care to proactively address potential health issues. The agency specifically requests tools and measures that assess overall health, happiness, and satisfaction in life that could include aspects of emotional well-being, social connections, purpose, fulfillment, and self-care work.
Proposed Measure Modification
To facilitate using their data in a complementary manner, CMS proposes to align the timeframes for two IPF quality measures: the Emergency Department (ED) Visit measure and the Unplanned Readmission measure. To do so, the IPF ED Visit timeframe will be expanded from a 1-year to 2-year reporting period, which matches the timeframe for this readmission measure. This change would take effect for the third quarter of 2025 through the second quarter of 2027, with the data to begin affecting payment in FY 2029.
Possible Future Use of Star Ratings
Currently, CMS publishes quality data online at www.medicare.gov/care-compare with provider-specific data for some IPFs available within the “hospitals” category. Also, beginning earlier this year, CMS provided to each IPF and the public an organization-specific report of the quality data CMS has submitted to the Hospital Quality Reporting system.
The Consolidated Appropriate Act of 2023 requires HHS to make additional IPF quality program data available to the public. To satisfy this new mandate, this rule raises for future consideration the possibility of using “star ratings” for IPFs, as it currently does for other hospitals and providers.
Star ratings are composite measures on provider performance that are intended to help patients and caregivers understand a provider’s quality of care and to compare quality differences across providers. Historically, providers have engaged in extensive policy work with CMS to improve star ratings’ relevance to patients and caregivers, with some concerns still unaddressed by the agency.
This rule seeks feedback on the future of developing a five-star methodology for IPFs that would encourage continuous quality improvement. CMS intends to design this methodology based on information from IPFs, patient groups, and other stakeholders, while currently seeking input on these points:
- Criteria for measure selection,
- Possible use of measures in the current IPF quality reporting program, and
- Future use of additional data for an IPF Star Rating System.
Details questions in these three categories are listed in Appendix A listed below.
Electronic Data Collection of Patient Assessment Information
Congress requires CMS to collect certain standardized patient assessment data using a standardized patient assessment instrument (PAI) in FY 2028 and each subsequent rate year[1]. More specifically, the PAI must collect at patient admission and discharge these categories of data: functional status; cognitive function and mental status; special services, treatments, and interventions; medical conditions and comorbidities; impairments; and other categories as determined appropriate by the HHS secretary. In addition, Congress requires that these data be used to compare IPFs.
To help develop a plan to implement this mandate, CMS has been collecting information from the field, including cautions from NABH and the Medicare Payment Advisory Commission last year that urged CMS to use PAI measures that are tested and validated specifically in IPFs, directly pertain to patient care, and are confirmed as statistically reliable.[2] To continue developing its IPF PAI design and implementation plan, this rule presents a lengthy list of questions, provided below as Appendix B, which are intended to assess the ability of the IPF field to implement a PAI using interoperable health information technology. In our comments, NABH will emphasize current real-world limitations of the overall field’s HIT capacity. Our comments will require substantial, specific information from our members related to CMS’ extensive list of questions to influence regulators.
Additional Request for Information
Reducing Administrative Burden
Aligning with a January 2025 White House Executive Order that calls for eliminating at least 10 existing regulations to offset any new regulation that increases net costs, CMS is seeking public comment on approaches and opportunities to streamline regulations and reduce administrative burdens. CMS directs feedback on this issue to its separately posted request for information. Specifically, questions posted in the detailed RFI fall into these categories:
- Streamline Regulatory Requirements
- Opportunities to Reduce Administrative Burden of Reporting and Documentation
- Identification of Duplicative Requirements
Please see the agency’s fact sheet for more information.
NABH will submit comments on this rule by the June 10 deadline.
[1] Required by Section 4125 of the Consolidated Appropriations Act of 2023, which was enacted in Dec. 2022.
[2] See CEO Update, 5-31-24, and pages 6-8 of the May 2024 letter from the Medicare Payment Advisory Commission to CMS.
APPENDIX A
CMS Request for Information On the
Possible Future Use of Star Ratings for IPFs
CMS invites public comment on the following star rating topics.
Criteria for measure selection
- Are there specific criteria CMS should use to select measures for an IPF star rating system, such as a measure’s generalizability (degree to which a measure is applicable to a broad segment of patients)?
- Should an IPF star rating system be limited to or more heavily weight certain types of measures (for example, outcome measures, process measures, structural measures; measures that address certain topics, such as safety, psychiatric treatment, substance use treatment, whole person care, or patient experience)?
Suitability of measures currently in the IPFQR Program
- From the perspective of patients and families or other caregivers, which measures currently adopted for the IPFQR Program are most important when attempting to summarize quality of care in IPFs? Which are least important? Are there any measures in the program that should be specifically excluded or included in IPF Star Ratings? For the list of IPFQR Program measures, we refer the reader to Table 5 in section IV.F. in this proposed rule.
- From the perspective of referring providers, payers, or other interested parties, which measures currently adopted for the IPFQR Program are most important when attempting to summarize quality of care in IPFs? Which are least important? Are there any measures in the program that should be specifically excluded or included in an IPF star ratings system?
- Two measures currently in the IPFQR Program—Hours of Physical Restraint Use
(HBIPS-2) and Hours of Seclusion (HBIPS-3)—are calculated and publicly reported as a rate per 1000 hours of patient care. Does the way these measures are currently specified and displayed create challenges for including these measures in a star rating calculation? If these measures were selected to be included in a star rating calculation, are there recommendations about how these measures should be included in a larger star rating methodology? For example, should the rate be made into a categorical variable (for example, quartiles)?
Future use of additional data for an IPF Star Rating System
- In the FY 2024 IPF PPS final rule (88 FR 51128), we finalized the Psychiatric Inpatient Experience (PIX) survey as a measure of patient experience in IPFs. The PIX survey will become mandatory for the FY 2028 payment determination—that is, data collection occurring in CY 2026. Although PIX data may not be available for an initial version of an IPF star rating system, what considerations should CMS give these data, when they become available? For example, should they be included as part of an overall star rating, or used to derive a standalone patient experience star rating? See for example the Hospital patient experience star rating, which is derived from the Hospital Consumer Assessment of Healthcare Providers and Systems (HCAHPS©) survey and displayed as “Patient survey rating” on the Compare tool.
- Are there other measurement topics that are currently not addressed by an IPFQR Program measure, but would be valuable in an IPF star rating? We intend to use this input to inform our future star rating development efforts. We intend to consider how a rating system would determine an IPF’s star rating, the methods used for such calculations, and an anticipated timeline for implementation. We will consider comments in response to this RFI for future rulemaking.
APPENDIX B
CMS Request for Information On
IPF Patient Assessment Instruments (PAI) Design and Implementaiton
CMS invites public comment on the following PAI topics.
- Please note whether your IPF is a unit or a freestanding hospital. In addition, for all of your responses below, please specify whether and how your organization’s status as a unit or freestanding hospital affects your response.
- To what extent does your facility use health IT systems to maintain and exchange patient records?
- If your facility has transitioned to using electronic records in whole or in part, what types of health IT does your IPF use to maintain patient records?
- Are these health IT systems certified under the Office of the National Coordinator for Health Information Technology (ONC) health IT certification program?
- Does your facility use EHRs or other health IT products or systems that are not certified under the ONC Health IT Certification Program? If so, do these systems exchange data using standards and implementation specifications adopted by HHS?
- Please specify.
- Does your IPF submit patient data to CMS directly from your health IT system, without the assistance of a third-party intermediary? If a third-party intermediary is used to report data, what type of intermediary service is used? How does your facility currently exchange health information with other healthcare providers or systems, specifically between IPFs and other provider types, or with public health agencies? What challenges do you face with the electronic exchange of health information?
- Are there any challenges with your current electronic devices (for example, tablets, smartphones, computers) that hinder your ability to easily exchange information across health IT systems?
- Please describe any specific issues you encounter.
- Does limited internet or lack of internet connectivity impact your ability to exchange data with other healthcare providers, including community-based care services, or your ability to submit patient data to CMS?
- What steps does your IPF take to ensure compliance in using health IT with security and patient privacy requirements such as the requirements of the regulations promulgated under the Health Insurance Portability and Accountability Act (HIPAA) and related regulations?
- Does your IPF refer to the SAFER Guides (see newly revised versions published in January 2025 at https://www.healthit.gov/topic/safety/safer-guides) to self-assess EHR safety practices?
- Quality Data Submission. What challenges or barriers does your IPF encounter when submitting quality measure data to CMS as part of the IPFQR Program? Please identify any factors that hinder successful data submission. What opportunities or factors could improve your facility’s successful data submission to CMS?
- What types of technical assistance, guidance, workforce training resources, and other resources would help IPFs to successfully implement the Fast Healthcare Interoperability Resources®[1] (FHIR®) standard for electronic exchange of patient assessment data.
- What strategies can CMS, HHS or other Federal partners take to ensure that technical assistance is both comprehensive and user-friendly?
- Is your facility using technology that utilizes application programming interfaces (API) based on the FHIR standard to enable electronic data sharing? If so, with whom are you sharing data using the FHIR standard and for what purpose(s)? For example, have you used FHIR APIs to share data with public health agencies? Does your facility use any Substitutable Medical Applications and Reusable Technologies (SMART) on FHIR applications? If so, are the SMART on FHIR applications integrated with your EHR or other health IT?
- What benefits or challenges have you experienced with implementing technology that uses FHIR-based APIs? How does adopting technology that uses FHIR-based APIs to facilitate the reporting of patient assessment data impact provider workflows? What impact, if any, does adopting this technology have on quality of care?
- Does your facility have any experience using technology that shares electronic health information using one or more versions of the United States Core Data for Interoperability (USCDI) standard? Note the Department of Health and Human Services currently underway policy development project to develop USCDI standards for behavioral healthcare.
- Call for Volunteers. Would your IPF and/or vendors be interested in participating in testing to explore options for transmission of assessments, for example, testing methods to transmit assessments that incorporate FHIR-enabled data to CMS?
- What other information should we consider, to facilitate successful adoption and integration of FHIR-based technologies and standardized data for a patient ssessment instruments like the IPF-PAI?
- We invite any feedback, suggestions, best practices, or success stories related to the implementation of these technologies.
[1]FHIR is a widely adopted standard for exchanging healthcare data electronically, facilitating interoperability between different systems. Developed by HL7, FHIR uses a RESTful API based on web standards like JSON, XML, and RDF.
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NABH Statement on ERIC Lawsuit Against Final Parity Regulations
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In its recent lawsuit, the ERISA Industry Committee (ERIC) purports to represent the interests of large (self-funded) employers, although NABH – including its large employer members – surely support the newly enacted regulations that attempt to implement the Mental Health Addiction and Equity Treatment Act of 2008 fully and fairly.
Compounding matters, ERIC’s lawsuit risks harming consumers with fully insured health plans, even though ERIC does not represent their or their employer’s interests.
Most notably, it is striking that, in the second paragraph of its complaint, ERIC states that “All that is required is parity in particular plan terms and their application, not parity in access to MH/SUD benefits, much less provision of particular benefits.”
In this way, ERIC is challenging even the parity comparative analysis intended to promote transparency and compliance. Essentially, ERIC is arguing that parity should exist in name only and need not result in real world access to care or equitable outcomes. This is perverse, and NABH strongly objects to this interpretation.
About NABH
The National Association for Behavioral Healthcare (NABH) represents provider systems that treat children, adolescents, adults, and older adults with mental health and substance use disorders in inpatient behavioral healthcare hospitals and units, residential treatment facilities, partial hospitalization and intensive outpatient programs, medication assisted treatment centers, specialty outpatient behavioral healthcare programs, and recovery support services in 49 states and Washington, D.C. The association was founded in 1933.
Medicaid Policy Proposals May Disrupt Behavioral Healthcare Access
Written by Meghan Barrett on . Posted in Analysis, News & Insights.
Background
Behavioral health conditions such as major depressive disorder, schizophrenia, and opioid use disorder are highly prevalent among Medicaid beneficiaries; in 2020, almost 40% of nonelderly adult beneficiaries had a mental or substance use disorder.[1] These individuals depend on the wide range of behavioral health benefits in Medicaid programs, including clinical services across the continuum of care, prescription drugs, and recovery support services. Medicaid is also the single largest payer for behavioral healthcare services in the United States and is an essential revenue source for behavioral healthcare organizations such as outpatient clinics, inpatient and residential facilities, and Opioid Treatment Programs (OTPs).[2]
Several policy proposals have been made to lower federal financial participation (FFP) in Medicaid, such as changing the current formula for Federal Medical Assistance Percentages, instituting caps to FFP at the state- or enrollee-levels (such as by transitioning Medicaid to a block grant), or limiting the existing safe harbor preventing a portion of state taxes on providers’ net patient revenue from being considered when calculating FFP.[3] Additionally, proposals have been made to institute work requirements for Medicaid beneficiaries.[4]
Medicaid Financing Proposals Could Exacerbate Existing Challenges
Reductions in FFP could prompt states to make harmful changes to their Medicaid programs to offset reduced revenue, such as:
- Decreasing provider payments.
- Restricting benefits, particularly optional benefits such as prescription drugs and home- and community-based services.
- Limiting eligibility, such as for the Medicaid expansion population.
These changes could make it much more difficult for people with behavioral health conditions to access needed care. Despite Medicaid being the nation’s largest payer of behavioral healthcare services, there is still significant unmet need for care[5]; each year, millions of people with behavioral health conditions do not receive any treatment.[6] This gap in treatment is largely attributable to a pervasive misalignment between payment for and coverage of behavioral healthcare services, and the positive impact these services have on people and communities.
Existing insurance payment rates for behavioral healthcare services are inadequate, and reductions would worsen this problem. Substantial disparities exist between behavioral healthcare providers and the rest of the healthcare system: an analysis found that, compared with psychiatrists and psychologists, benchmarked commercial insurance reimbursement for office visits with specialist medical/surgical physicians was 25% and 29% higher, respectively.[7]
Meanwhile, Medicaid payment is typically much lower than other insurance programs, with average Medicaid reimbursement for physician office visits being 38% less than employer-sponsored insurance and 26% less than Medicare.[8] Another study found that psychiatrists were reimbursed by Medicaid fee-for-service 19% less on average than by Medicare.[9] Further, Medicaid rates do not necessarily cover provider costs; in 2018, Medicaid payments for community hospital services amounted to only 89% of the cost to deliver those services.[10]
Therefore, reduced payment may further disincentivize behavioral healthcare providers’ participation in Medicaid, exacerbating current issues with inadequate insurance networks of behavioral healthcare providers. For example, a secret shopper survey in New York found that only 14% of calls made to mental healthcare providers listed as in-network by health plans led to an appointment being offered.[11] Another analysis found that over half of mental healthcare providers in Oregon Medicaid managed care plan directories did not see Medicaid beneficiaries in 2018.[12] This reflects the current state of low in-network use of behavioral healthcare services. In 2021, commercially insured patients had out-of-network office visits with psychiatrists 8.9 times more and with psychologists 10.6 times more than with medical/surgical specialists.7
Restricting benefits may also lead to greater out-of-network use, as many important behavioral healthcare services are not mandatory benefits in Medicaid, including residential and inpatient behavioral healthcare, most psychiatric medications, targeted case management, and various other clinical services.[13]
Accordingly, each of the Medicaid policy changes could result in individuals incurring greater out-of-pocket expenses, which, according to the Congressional Budget Office (CBO), could “possibly [lead] to a significant increase in medical debt and bankruptcies.”[14] Otherwise, more individuals could delay or forgo care due to unaffordability, which could result in worsened symptoms that necessitate more intensive care than if treated earlier.
These risks are magnified for Medicaid beneficiaries who lose coverage, as a portion of them may be unable to enroll in other plans (e.g., employer-sponsored, Marketplace). If FFP caps are implemented, CBO and Joint Committee on Taxation staff estimate that about 65% of people who lose Medicaid coverage would become uninsured.[15]
Work Requirements Must Include Behavioral Health Exceptions
Beyond financing, other proposals have been made to implement work requirements for Medicaid beneficiaries (also called “community engagement requirements”), whereby adults’ Medicaid eligibility is conditioned on continued participation in work or other qualifying activities (e.g., educational activities, volunteer programs).4 If pursued, work requirements must incorporate sufficient exceptions to ensure that individuals whose mental or substance use disorders prevent them from satisfying the requirements remain eligible for Medicaid enrollment and are not terminated.
These exceptions should reflect the enormous challenges that people with behavioral health conditions face, many of whom need treatment but cannot access it. Therefore, exceptions should not be limited to people actively enrolled in treatment. Additionally, while some people with behavioral health conditions may qualify for a disability exception, these determinations are often complex and do not capture everyone with significant impairment, so relying on disability exceptions alone risks people who cannot work because of their condition losing coverage. Further, some people with behavioral health conditions experience diminished mental capacity that interferes with their ability to complete administrative processes such as verifying exception eligibility or work requirement compliance, so processes must be designed to accommodate these circumstances. Finally, some people who are not working due to their behavioral health condition may be able to obtain employment if they receive appropriate treatment and recovery supports, so continued Medicaid coverage could actually help facilitate people getting employed.
Importance of Medicaid for the Behavioral Healthcare System
With Medicaid beneficiaries having a disproportionately high prevalence of behavioral health conditions,[16] Medicaid is critical to the delivery of services that people with mental and substance use disorders rely upon to treat their conditions. Therefore, the proposed Medicaid policy changes pose significant risks to behavioral healthcare organizations, which already are stretched thin by low reimbursement and uncompensated care amounting to billions of dollars per year.[17] These changes could necessitate cuts to service availability, leading to decreased access for patients amidst unprecedented need for services.
For OTPs, Medicaid funding enables them to be at the front line of the national response to the overdose crisis. OTPs deliver evidence-based treatment that promotes long-term recovery from opioid use disorder and prevents overdose deaths, and their efforts have transformed the lives of countless Medicaid beneficiaries, especially considering that Medicaid beneficiaries have an overdose death rate that is twice as high as the overall rate in the United States.[18] With 86% percent of OTPs accepting Medicaid in 2023[19] – more than any other insurance type – less funding from Medicaid could threaten the sustainability of OTPs and undermine the recent progress made to reduce overdose deaths.
Beyond the essential care that behavioral healthcare organizations provide, these facilities also have tremendous positive impacts on the economy. For example, one study found that the national economic impact of inpatient psychiatric facilities is nearly three times higher than expenditures, and these facilities alone create almost half a million jobs.[20] If Medicaid expenditures are reduced, we could expect even greater decreases in economic output attributable to behavioral healthcare facilities.
Recommended Actions
The 119th Congress and Trump administration have several major opportunities to reduce burden on behavioral healthcare organizations and better support them as they work to combat the nation’s behavioral health crisis. With respect to Medicaid, NABH recommends the following immediate actions to expand access to treatment:
- Eliminate the Institution for Mental Diseases exclusion, which blocks access to treatment for millions of Americans with severe mental and substance use disorders.
- Align mental health parity requirements for Medicaid managed care plans with the recent final rule for commercial markets, which was a major step forward in expanding access to care.
- Promote adequate Medicaid reimbursement of behavioral healthcare services to match the cost of delivering those services and the value they provide to patients.
Conclusion
For too long, payment and coverage inadequacy has inhibited the availability of behavioral healthcare services. Proposed changes to Medicaid financing and eligibility could have devastating impacts on Medicaid beneficiaries’ access to behavioral healthcare and the organizations that deliver these services. Congress and the Trump administration should undertake policy efforts that promote access to care for the millions of Americans with mental and substance use disorders.
References
[1] Guth M, Saunders H, Corallo B, Moreno S. Medicaid coverage of behavioral health services in 2022: findings from a survey of state Medicaid programs [Internet]. Kaiser Family Foundation; 2023 Mar 17 [cited 2025 Jan 17]. Available from: https://www.kff.org/mental-health/issue-brief/medicaid-coverage-of-behavioral-health-services-in-2022-findings-from-a-survey-of-state-medicaid-programs
[2] Medicaid and CHIP Payment and Access Commission. Behavioral health [Internet]. Medicaid and CHIP Payment and Access Commission; [cited 2025 Jan 17]. Available from: https://www.macpac.gov/topic/behavioral-health
[3] Congressional Budget Office. Options for reducing the deficit: 2025 to 2034 [Internet]. Congressional Budget Office; 2024 Dec [cited 2025 Jan 17]. Available from: https://www.cbo.gov/system/files/2024-12/60557-budget-options.pdf
[4] Limit, Save, Grow Act of 2023, H.R. 2811, 118th Cong., 1st Sess. (2023). Available from: https://www.congress.gov/bill/118th-congress/house-bill/2811
[5] Meiselbach MK, Ettman CK, Shen K, Castrucci BC, Galea S. Unmet need for mental health care is common across insurance market segments in the United States. Health Aff Sch. 2024 Mar 8;2(3):qxae032. doi: 10.1093/haschl/qxae032. PMID: 38756925; PMCID: PMC10986235. Available from: https://pmc.ncbi.nlm.nih.gov/articles/PMC10986235
[6] Substance Abuse and Mental Health Services Administration. 2023 NSDUH Detailed Tables [Internet]. Substance Abuse and Mental Health Services Administration; 2024 Jul 30 [cited 2025 Jan 17]. Available from: https://www.samhsa.gov/data/report/2023-nsduh-detailed-tables
[7] Mark TL, Parrish W. Behavioral health parity – pervasive disparities in access to in-network care continue [Internet]. RTI International; 2024 Apr 17 [cited 2025 Jan 17]. Available from: https://dpjh8al9zd3a4.cloudfront.net/publication/behavioral-health-parity-pervasive-disparities-access-network-care-continue/fulltext.pdf
[8] Biener AI, Selden TM. Public and private payments for physician office visits. Health Aff. 2017 Dec;36(12):2160-2164. doi: 10.1377/hlthaff.2017.0749. PMID: 29200346. Available from: https://www.healthaffairs.org/doi/10.1377/hlthaff.2017.0749
[9] Zhu JM, Renfro S, Watson K, Deshmukh A, McConnell KJ. Medicaid reimbursement for psychiatric services: comparisons across states and with Medicare. Health Aff. 2023 Apr;42(4):556-565. doi: 10.1377/hlthaff.2022.00805. PMID: 37011308; PMCID: PMC10125036. Available from: https://pmc.ncbi.nlm.nih.gov/articles/PMC10125036
[10] Appendix 1: supplementary data tables. Trends in the overall health care market [Internet]. American Hospital Association; [cited 2025 Jan 17]. Available from: https://www.aha.org/system/files/media/file/2020/10/TrendwatchChartbook-2020-Appendix.pdf
[11] Office of the New York State Attorney General. Inaccurate and inadequate: health plans’ mental health provider network directories [Internet]. Office of the New York State Attorney General; 2023 Dec 7 [cited 2025 Jan 17]. Available from: https://ag.ny.gov/sites/default/files/reports/mental-health-report_0.pdf
[12] Zhu JM, Charlesworth CJ, Polsky D, McConnell KJ. Phantom networks: discrepancies between reported and realized mental health care access in Oregon Medicaid. Health Aff. 2022 Jul;41(7):1013-1022. doi: 10.1377/hlthaff.2022.00052. PMID: 35787079; PMCID: PMC9876384. Available from: https://www.healthaffairs.org/doi/10.1377/hlthaff.2022.00052
[13] Medicaid and CHIP Payment and Access Commission. Behavioral health services covered under state plan authority [Internet]. Medicaid and CHIP Payment and Access Commission; 2021 Jan 11 [cited 2025 Jan 17]. Available from: https://www.macpac.gov/subtopic/behavioral-health-services-covered-under-state-plan-authority
[14] Congressional Budget Office. Options for reducing the deficit: 2023 to 2032 [Internet]. Congressional Budget Office; 2022 Dec [cited 2025 Jan 17]. Available from: https://www.cbo.gov/system/files/2022-12/58164-budget-options-large-effects.pdf
[15] Congressional Budget Office. Establish caps on federal spending for Medicaid [Internet]. Congressional Budget Office; 2022 Dec 7 [cited 2025 Jan 17]. Available from: https://www.cbo.gov/budget-options/58622
[16] Saunders S, Rudowitz R. Demographics and health insurance coverage of nonelderly adults with mental illness and substance use disorders in 2020 [Internet]. Kaiser Family Foundation; 2022 Jun 6 [cited 2025 Jan 17]. Available from: https://www.kff.org/mental-health/issue-brief/demographics-and-health-insurance-coverage-of-nonelderly-adults-with-mental-illness-and-substance-use-disorders-in-2020
[17] Government Accountability Office. States’ use and distribution of supplemental payments to hospitals [Internet]. Government Accountability Office; 2019 Jul [cited 2025 Jan 17]. Available from: https://www.gao.gov/assets/gao-19-603.pdf
[18] Mark TL, Huber BD. Drug Overdose Deaths Among Medicaid Beneficiaries. JAMA Health Forum. 2024 Dec 6;5(12):e244365. doi: 10.1001/jamahealthforum.2024.4365. PMID: 39641942; PMCID: PMC11624576. Available from: https://pmc.ncbi.nlm.nih.gov/articles/PMC11624576/
[19] Center for Behavioral Health Statistics and Quality, Substance Abuse and Mental Health Services Administration. National Substance Use and Mental Health Services Survey (N-SUMHSS), 2023: annual detailed tables [Internet]. Substance Abuse and Mental Health Services Administration; 2024 [cited 2025 Jan 17]. Available from: https://www.samhsa.gov/data/sites/default/files/reports/rpt53013/NSUMHSS-Annual-Detailed-Tables-23.pdf
[20] Dobson A, DaVanzo JE, Heath S, Berger G, El-Gamil A. The economic impact of inpatient psychiatric facilities: a national and state-level analysis. National Association for Behavioral Healthcare; 2010 Feb 19 [cited 2025 Jan 17]. Available from: https://www.nabh.org/wp-content/uploads/2018/06/NAPHS-Final-Report-2-19-10.2.pdf
DEA & HHS Extend Telehealth Flexibilities for Controlled Substances
Written by Meghan Barrett on . Posted in Issue Brief, News & Insights.
The U.S. Drug Enforcement Administration (DEA) and U.S. Department of Health and Human Services (HHS) on Wednesday proceeded with rulemaking related to the prescribing of controlled substances via telehealth without ever having conducted an in-person medical evaluation, which would partially extend current flexibilities that have been in place since the COVID-19 pandemic.
In particular, (1) DEA and HHS issued a final rule focused on buprenorphine for the treatment of opioid use disorder (OUD), and (2) DEA issued a notice of proposed rulemaking (NPRM) for special registrations focused on all Schedule II-V controlled substances.
The final rule will allow practitioners to prescribe Schedule III-V controlled substances for OUD (i.e., buprenorphine) for up to six months via audiovisual or audio-only telehealth before conducting an initial in-person medical evaluation, after which the practitioner must conduct an in-person medical evaluation or engage in other telehealth practices permitted by regulation to continue prescribing. The final rule also includes requirements related to prescription drug monitoring program (PDMP) review and pharmacist verification of patient identify. It is estimated that this rule will become effective on Feb. 16, 2025.
The NPRM would create multiple special registrations for practitioners and online telemedicine platforms (i.e., entities that facilitate connections between patients and practitioners) to prescribe controlled substances via telehealth indefinitely. For practitioners, there would be a Telemedicine Prescribing Registration covering Schedules III-V; and an Advanced Telemedicine Prescribing Registration covering Schedules II-V, which would be limited to practitioners who specialize in psychiatry, hospice care, palliative care, pediatrics, or neurology (unrelated to pain management), and practitioners in long-term care facilities.
Online telemedicine platforms would be eligible for a Telemedicine Platform Registration if they provide oversight of practitioners’ prescribing practices and undertake efforts to promote patient safety and prevent misuse and diversion. In addition to obtaining one of these three special registrations, entities would generally be required to obtain a State Telemedicine Registration for each state in which patients who receive special registration prescriptions are located.
Other requirements for practitioners include maintaining photographic records on patient identity, maintaining all special registration records at a single location, including a special registration number on applicable prescriptions, and annual reporting to DEA of special registration prescriptions for all Schedule II and select Schedule III-V controlled substances (pharmacies would also be required to report similar data monthly). For Schedule II controlled substances, additional limitations are proposed, including that special registration prescriptions could only be issued to treat conditions within the practitioner’s specialty, pediatric specialists could only issue prescriptions to patients up to age 18 and when a parent/guardian is in the same room, practitioners must be physically located in the same state as a patient when issuing a prescription, and the number of special registration Schedule II prescriptions must be less than 50% of the total number Schedule II prescriptions issued in a calendar month.
In addition, DEA proposes that for the first three years after implementation, practitioners would need to check the PDMPs of the state where the patient is located, the state where the practitioner is located, and any states with which each of the previous states have reciprocity agreements. After three years, practitioners would need to conduct a nationwide PDMP check. If that is not possible, however, practitioners would follow the prior requirements.
Finally, all telehealth encounters would need to be conducted using audiovisual technology, except audio-only technology would be permitted for the prescribing of Schedule III-V narcotic-controlled substances to treat OUD (i.e., buprenorphine) after a telehealth evaluation is conducted using audiovisual technology.
NABH staff will coordinate with relevant NABH committees to develop a response to the NPRM. We expect that comments will be due by March 18, 2025.
Alcoholism & Drug Abuse Weekly – Dec. 16, 2024
Written by Meghan Barrett on . Posted in News & Insights.
NABH Urges CMS to Strengthen Medicaid Parity Regulations
Written by Meghan Barrett on . Posted in Letters, News & Insights.
Dan Schwartz Joins NABH as Director of Quality and Addiction Services
Written by Meghan Barrett on . Posted in News & Insights, News Releases.
WASHINGTON, Dec. 10, 2024 /PRNewswire/ — The National Association for Behavioral Healthcare (NABH) is pleased to welcome Dan Schwartz as the association’s director of quality and addiction services.
Dan brings to NABH a range of experiences in federal agencies related to addiction services, including most recently in his role as a senior behavioral health policy analyst in the Office of the Assistant Secretary for Planning and Evaluation (ASPE) at the U.S. Department of Health and Human Services (HHS).
In that role, Dan engaged in federal policymaking efforts by providing subject matter expertise about the delivery, financing, and regulation of behavioral health services, with an emphasis on the substance use disorder care continuum, controlled substances, and various mental health topics.
Dan also served as the staff lead for the HHS Workgroup on Implementation Strategies for Contingency Management; co-led a workgroup that supported developing legislative proposals related to behavioral health; and was a lead analyst for developing and implementing the HHS Overdose Prevention Strategy.
“We are excited to have Dan join our team,” said NABH President and CEO Shawn Coughlin. “He brings energy, experience, and enthusiasm to a critical role in our association.”
Prior to working at ASPE, Dan worked at the White House Office of National Drug Control Policy and the Substance Abuse and Mental Health Services Administration.
Dan earned a master’s degree in public health from Johns Hopkins University, where he was a Bloomberg Fellow in Addiction & Overdose, and a bachelor’s degree in public health from George Washington University.
About NABH
The National Association for Behavioral Healthcare (NABH) represents provider systems that treat children, adolescents, adults, and older adults with mental health and substance use disorders in inpatient behavioral healthcare hospitals and units, residential treatment facilities, partial hospitalization and intensive outpatient programs, medication assisted treatment centers, specialty outpatient behavioral healthcare programs, and recovery support services in 49 states and Washington, D.C. The association was founded in 1933.
SOURCE National Association for Behavioral Healthcare
NABH Responds to The New York Times story on Opioid Treatment Programs
Written by Administrator on . Posted in Letters, News & Insights.
Washington, Dec. 7, 2024—A story published in The New York Times on Dec. 7 has prompted NABH to clarify the purpose and critical need for opioid treatment programs (OTPs) in the United States.
NABH is concerned the article’s incomplete picture of how OTP treatment works could contribute to what is already a stigmatized disease in an environment where patients should be encouraged to seek the care they need desperately. OTPs are among the most regulated facilities in the healthcare system and provide lifesaving care every day.
Millions of Americans struggle with opioid addiction, and the Centers for Disease Control and Prevention reports more than 81,000 Americans died from an opioid-related overdose in 2023.
NABH member facilities, including those that Acadia Healthcare operates, provide a lifeline to those in need. Opioid treatment programs provide medication-assisted treatment (MAT), which combines U.S. Food and Drug Administration (FDA)-approved medications, behavioral therapies, and wraparound support services. MAT is the most effective intervention to treat opioid use disorder and is proven to reduce overdose fatalities by up to 60%.[1] Meanwhile, the U.S. Surgeon General has called MAT the “gold standard” for treating opioid use disorder (OUD).[2] OTPs provide MAT while addressing patients’ unique needs, reducing barriers to care, and implementing safeguards that support long-term recovery and sustained treatment engagement.
It is important to understand that treatment at OTPs is voluntary, and staff members see patients only after patients make the decision to seek treatment. Patients benefit from the expertise of a multidisciplinary team including physicians, nurses, counselors, clinicians, peer recovery specialists, and case managers, and patients can choose to start or complete treatment based on their own decisions and unique circumstances.
In addition, OTPs are subject to strict regulations and are required by law to employ a licensed physician who oversees all medical services provided to patients based on rigorous clinical guidelines. OTPs are also accredited and regularly inspected to uphold high standards of care, and, in many cases, our members exceed the state and federal regulatory requirements needed to maintain their licenses. These providers invest heavily in staff, training and medical care, counseling, case management and wraparound support— services that often exceed what insurance will reimburse.
Our members see firsthand the growing lethality of drug use and the severe ramifications of individuals not being able to receive needed treatment right away. Yet only 1 out of 5 people living with OUD are receiving needed treatment.[3] Early intervention is critical, with scientific research showing significantly better outcomes for patients who receive comprehensive care compared with those who don’t.
NABH strongly supports the potential of recent federal efforts to expand access to care through telehealth services, expanded methadone take-home privileges, and other flexibilities offered through regulatory revisions. However, we continue to express serious concerns regarding the Modernizing Opioid Treatment Access Act (MOTAA) due to the potential unintended consequences and harms that may result from legislation proposing such abrupt and expansive regulatory changes.
And we are not alone. Other stakeholders have also expressed significant concerns, including six of the nation’s largest law enforcement organizations. For more information about this issue, please see NABH’s letter to House and Senate leaders on Dec. 4, 2024.
OTP facilities play a vital role in addressing the nation’s opioid and addiction crises, and it is imperative that we continue to support providers who do this important work so people in need can immediately access the personalized care, treatment options, and ongoing support services they need to achieve long-term recovery.
About NABH
The National Association for Behavioral Healthcare (NABH) represents provider systems that treat children, adolescents, adults, and older adults with mental health and substance use disorders in inpatient behavioral healthcare hospitals and units, residential treatment facilities, partial hospitalization and intensive outpatient programs, medication assisted treatment centers, specialty outpatient behavioral healthcare programs, and recovery support services in 49 states and Washington, D.C. The association was founded in 1933.
NABH MOTAA Letter to House Senate Leadership – Dec. 2024
Written by Meghan Barrett on . Posted in Letters, News & Insights.
NABH Letter to CMS on Accrediting Organizations
Written by Meghan Barrett on . Posted in Letters.
NABH Letter to The Joint Commission-April 2024
Written by Meghan Barrett on . Posted in Letters.
NABH BHIT Letter to ONC and SAMHSA
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH 2024 Advocacy Priorities
Written by Meghan Barrett on . Posted in Resources.
2024 Annual Meeting At-a-Glance
Written by Meghan Barrett on . Posted in News Releases.
MOTAA – NABH Letter
Written by Meghan Barrett on . Posted in Letters.
SAMHSA Updates OTP Regulations
Written by Meghan Barrett on . Posted in Alerts.
SAMHSA Updates OTP Regulations
Updated Feb. 2, 2024 The Substance Abuse and Mental Health Services Administration published Medications for the Treatment of Opioid Use Disorder late yesterday for public inspection. The final rule was published earlier today and becomes effective on April 2, 2024, with compliance by October 2, 2024. [Please note that this is a correction of the compliance date of October 2, 2026 that was published yesterday in the public notice.] NABH provided comments on the Notice of Proposed Rule Making that was issued in December 2022 calling for greater regulatory flexibility for opioid treatment programs (OTPs). The final regulations align closely to NABH recommendations and herald greater deference to clinical decision-making in the nation’s (OTPs). Among the provisions, the regulations:- Make permanent the Covid-era take-home schedule;
- Permit methadone for new patients via audio-visual telemedicine with the dispensing of medication at the OTP (not audio-only).
- Permit audio-only telemedicine when the patient is in the presence of a practitioner who is registered to prescribe SII, including dispensing.
- Clarify (in response to NABH off-line discussion and official comments) that the prescription of methadone to community pharmacies is NOT permitted;
- Change the requirement for a one-year history of OUD for eligibility so that now either the patient must a) meet diagnostic criteria for moderate-severe OUD, or b) be in OUD remission, or c) at high risk for overdose;
- Remove the requirement for two treatment failures for people under 18 to be eligible for services;
- Remove requirement for a one-year history of OUD for people recently released from a correctional facility, pregnant patients, or previously enrolled individuals;
- Allow medication units to provide all OTP services;
- Decouple medication and attendance at counseling services;
- Permit interim treatment for 180 days, including at for-profit OTPs;
- Permit mid-levels (“…those appropriate licensed by the state”) to prescribe without exemption;
- Clarified accreditation standards to reduce potential for a burdensome increase in less-than 3-year accreditations;
- Permit buprenorphine prescribing in an OTP via audio-only and audio-visual without an in-person evaluation; and
- Update terminology to reflect contemporary, non-stigmatizing language.
NABH Comments on Medicare Advantage
Written by Meghan Barrett on . Posted in Letters.
NABH Comment Letter- Medicaid & CHIP Parity
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH Letter on SUPPORT Act Reauthorization
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH Letter to Senate HELP Committee on MOTAA
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH Parity Comment Letter
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH Urges Lawmakers to Reauthorize the SUPPORT Act
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH Comments-OPPS PFS CY 24 Proposed Rule
Written by Administrator on . Posted in Letters.
9th Circuit Order-Wit-August 2023
Written by Emily Wilkins (NABH) on . Posted in Resources.
Andrew Dodson Joins NABH as Director of Congressional Affairs
Written by Emily Wilkins (NABH) on . Posted in News Releases.
CMS Final Rule Estimates Overall IPF Payments to Increase by 2.3% in 2024
Written by Emily Wilkins (NABH) on . Posted in Alerts.
HHS, DOL and Treasury Release Proposed Rules to Strengthen MHPAEA
Written by Emily Wilkins (NABH) on . Posted in Alerts.
Bowman Family Foundation Report: Equitable Access to Mental Health and Substance Use Care
Written by Emily Wilkins (NABH) on . Posted in Resources.
CSOO Letter: Due Process Continuity of Care Act
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH Letter on IPF PPS Proposed Rule
Written by Emily Wilkins (NABH) on . Posted in Letters.
CMS Coverage for PHP Telehealth Services Set to End After May 11
Written by Emily Wilkins (NABH) on . Posted in Alerts.
DEA Extends COVID-19 Telehealth Flexibilities for Prescription of Controlled Medications for Now
Written by Emily Wilkins (NABH) on . Posted in Resources.
CMS PHE Fact Sheet
Written by Emily Wilkins (NABH) on . Posted in Resources.
NABH Education & Research Foundation Webpage Now Features Grants & Funding Opportunities
Written by Emily Wilkins (NABH) on . Posted in Resources.
CBO Report: Budgetary Effects of Modifying or Eliminating the IMD Exclusion
Written by Emily Wilkins (NABH) on . Posted in Resources.
CBO Report: Budgetary Effects of Modifying or Eliminating the IMD Exclusion
NABH Contingency Management Fact Sheet
Written by Emily Wilkins (NABH) on . Posted in Position Papers.
NABH Letter to DEA Telehealth Schedule II Telemedicine
Written by Emily Wilkins (NABH) on . Posted in Letters.
2023 NABH Advocacy Priorities
Written by Emily Wilkins (NABH) on . Posted in Resources.
FDA Approves First Over-the-Counter Naloxone Spray
Written by Emily Wilkins (NABH) on . Posted in Alerts.
NABH Letter to Norcross-Markey
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH Response- Senate HELP Workforce RFI
Written by Emily Wilkins (NABH) on . Posted in Letters.
Amicus Brief: Wit v. UBH (3-17-23)
Written by Emily Wilkins (NABH) on . Posted in Resources.
NABH FTC Non-Compete Comment Letter
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH Prior Authorization Comment Letter
Written by Emily Wilkins (NABH) on . Posted in Letters.
HALO Letter on Medicaid DSH Cuts March 2023
Written by Emily Wilkins (NABH) on . Posted in Letters.
DEA Telehealth Proposed Rules
Written by Emily Wilkins (NABH) on . Posted in Alerts.
CY 2024 MA Proposed Rule Comments
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH OTP Comment Letter
Written by Emily Wilkins (NABH) on . Posted in Letters.
President Biden to Outline Approach for Addressing Nation’s Mental Health & Opioid Crises in State of the Union
Written by Emily Wilkins (NABH) on . Posted in Alerts.
NABH Education and Research Foundation Partners with Manatt to Produce Issue Brief on Telehealth Services in PHP and IOP
Written by Emily Wilkins (NABH) on . Posted in Alerts.
- During the COVID-19 crisis, regulatory flexibilities enabled traditional in-person PHPs and IOP programs to implement telehealth services rapidly.
- Using telehealth to deliver PHP and IOP services has improved access to care for remote patients and those facing other access obstacles.
- Emerging research is showing that, relative to in-person care, the use of telehealth in PHPs and IOPs generally is improving the quality of clinical care, patient satisfaction and the overall efficiency of the healthcare system.
NABH Comments on Benefit and Payment Parameters for 2024
Written by Emily Wilkins (NABH) on . Posted in Letters.
NABH Submits Comment Letter on Federal and State Health Exchange Proposed Rule for 2024
Written by Emily Wilkins (NABH) on . Posted in Letters.
Joint Letter to ONDCP on Contingency Management
Written by Emily Wilkins (NABH) on . Posted in Letters.