House Bill 1029 from Representative Andrew Collins aims to set the reimbursement rate for mental health services and addiction-related services under the Arkansas Medicaid Program.

Key Provisions:

1. Reimbursement Rate:

   • The bill requires the Arkansas Medicaid Program to set the reimbursement rate for mental health and addiction services to at least 100% of the Medicare reimbursement rate for comparable services.

2. Reimbursement for Services in Surrounding States:

   • The bill also mandates that Arkansas Medicaid reimburse for any mental health or addiction-related service that is available in neighboring states, even if those services are not currently offered within Arkansas.

3. Federal Authorization:

   • The Department of Human Services is required to seek any necessary federal waivers or Medicaid state plan amendments to implement these changes.

Summary: This bill ensures that Arkansas Medicaid reimburses providers for mental health and addiction services at rates comparable to Medicare, and expands coverage to include services available in nearby states, if necessary. It also directs the state to seek federal approval to make these changes.

What is the current reimbursement rate?

As of January 1, 2024, the Arkansas Medicaid Program reimburses for specific mental health services, including group and multi-family behavioral health counseling, at rates equivalent to 100% of the 2022 Medicare non-rural rates. However, the reimbursement for other types of mental health and addiction services varies depending on the specific services provided. For example, some behavioral health services may be reimbursed under a fixed rate for services like acute crisis units, which is set at $350 per day without cost settlements.