Residential Recovery for Seniors Act

Key Points

• The bill creates a brand new Medicare benefit that pays for residential substance use disorder treatment, something Medicare largely does not cover today.
• It sets up three tiers of care based on need: low-intensity support, high-intensity clinical supervision, and medically managed care for people with serious withdrawal or medical complications.
• Facilities must be accredited, enrolled as Medicare providers, and follow evidence-based standards, with a patient's need for continued care reviewed regularly, as often as every 10 days for the most intensive level.
• Medicare would pay facilities a set daily rate under a new prospective payment system, starting with cost reporting periods on or after October 1, 2026.
• The goal is to close a longstanding gap where seniors and people with disabilities on Medicare could not afford residential rehab, even though the option exists for many people with private insurance or Medicaid.