Tillis bill permits Medicaid coverage for foster care children in mental health programs

U.S. Sen. Thom Tillis (R-NC) recently cosponsored a bill that would extend Medicaid coverage for foster care children who are receiving treatment in a Qualified Residential Treatment Program (QRTP).

“Investing in the mental health and well-being of children in foster care will positively impact lives and improve outcomes for the next generation,” Sen. Tillis said on Monday. 

The lawmaker on Nov. 1 introduced the Ensuring Medicaid Continuity for Children in Foster Care Act of 2023, S. 3196, which is sponsored by U.S. Sen. Marco Rubio (R-FL) to remove the federal prohibition on Medicaid funding going to certain facilities that provide foster children with mental and substance use care. 

“Foster care provides a safe and stable environment for children, many of whom are recovering from traumatic events,” said Sen. Tillis. “However, children in foster care who require critically important support and services oftentimes face unnecessary barriers in receiving care. This legislation will ensure these children can receive the necessary behavioral and mental health services when they need it and where they need it.”

According to a bill summary provided by Sen. Tillis’ staff, the health care needs of children in foster care are covered by Medicaid. However, QRTPs may not receive Medicaid financing due to the Institutions for Mental Disease (IMD) exclusion, a law that prohibits Medicaid payments to a hospital, nursing facility, or other institution with more than 16 beds that primarily provides care for people with mental health conditions.

If enacted, S. 3196 would provide a narrow exemption from the IMD exclusion to ensure children in foster care receiving care in QRTPs may continue receiving care provided in these settings without losing their federal Medicaid coverage, the summary says.