Congress·In Committee·S. 3402

Senate Bill Would Expand Medicaid and Medicare Coverage for Community Mental Health Clinics

Ensuring Excellence in Mental Health Act

3 months ago·View on Congress.gov

⏸

Stalled

No legislative action in over 90 days.

Legislative Progress

Senate

House

President

Law

Key Points

Lets states pay certified community mental health clinics in Medicaid using a set payment system tied to real clinic costs, starting Jan. 1, 2026.
Expands what these clinics can cover in Medicaid (like crisis help, screening, outpatient care, peer support, and some veteran-focused care), starting Oct. 1, 2026.
Adds Medicare coverage for these clinic services starting Jan. 1, 2027, and sets up a Medicare payment system so clinics can be paid in a more predictable way.
Lowers some out-of-pocket costs for Medicare patients by waiving the Part B deductible for these clinic services, and allows clinics to appeal certain payment decisions.
Creates federal grants to help clinics operate and improve, and gives liability protection to clinic clinicians similar to other federally protected providers.

HealthcareMedicare MedicaidPrescription DrugsVeterans

Impact Analysis

Personal Impact

How this policy affects specific groups of people

Positive Impacts(9)

Medicaid

Helps

Mental Health

Helps

Retiree

Helps

Medicare

Helps

Chronic Illness

Helps

Military Active

Helps

Military Veteran

Helps

Veterans Benefits

Helps

Cognitive Developmental

Helps

Milestones

2 milestones2 actions

Dec 9, 2025Senate

Read twice and referred to the Committee on Finance.

Dec 9, 2025

Introduced in Senate

What Happens Next

Projected impacts based on AI analysis

2026-01-01

States may start requiring accreditation for certain Medicaid-certified clinics

In states that choose this option, clinics may need to get approved accreditation to keep or gain certified status, which can affect which clinics stay in-network for this benefit.

2026-01-01

New Medicaid payment method begins for certified community behavioral health clinics in state plans that elect the benefit

If your state covers CCBHC services in its Medicaid plan, clinics should be paid based on reasonable costs (with inflation updates), which can help clinics expand hours, hire staff, and keep crisis services running.

During fiscal year 2026, after funding is appropriated and the program opens

Federal grant program for community behavioral health clinics can start once funded

Clinics could apply for up to 5-year operating grants to expand services, upgrade buildings and technology, and build capacity—potentially increasing appointment availability in your community.

Related News

1 article

Becker's Behavioral Health·3 months ago

Bill aims to solidify Medicare mental health clinic funding

Bipartisan legislation introduced in the Senate would establish a permanent funding structure under Medicare for Certified Community Behavioral Health Clinics (CCBHCs). The Ensuring Excellence in Mental Health Act would formally authorize coverage and create a designated payment model.