Ensuring Medicaid Continuity for Children in Foster Care Act of 2026

Key Points

• This bill makes sure that children in foster care do not lose their Medicaid health insurance when they are placed in certain residential treatment centers. It specifically covers facilities known as qualified residential treatment programs.
• Currently, an old federal rule often stops Medicaid from paying for care in larger mental health or treatment buildings. This bill creates a special exception so foster kids can get intensive help without losing their medical benefits.
• The policy helps children who have gone through trauma and need specialized care. By keeping Medicaid active, the bill ensures that their doctors and therapists are still paid while the child is staying at the treatment center.
• If this bill becomes law, the changes would begin on October 1, 2026. This gives state foster care systems and health agencies time to update their records and make sure coverage continues smoothly for every child.

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