Establishes Medicaid reimbursement rates for certain behavioral health services. (7/1/25) (EN +$1,830,352 GF EX See Note)
Summary
SB 96 creates a new Louisiana law requiring the Louisiana Department of Health, subject to federal approval from the Centers for Medicare and Medicaid Services, to reimburse Medicaid providers for mental health partial hospitalization program services delivered at licensed freestanding inpatient psychiatric hospitals. The reimbursement rate must be set at 100% of the Medicare rate for those services.
The bill also conditions implementation on funding. The Department may proceed only if the Legislature appropriates money for the purpose or if the secretary of the Department of Health notifies the Joint Legislative Committee on the Budget that existing budget authority contains sufficient available funds to carry out the law.
Impact
The bill adds R.S. 46:460.77.4 to Louisiana law and directs the Department of Health to pay Medicaid claims for a specific behavioral health service category at Medicare-equivalent rates, which could increase state Medicaid spending. The fiscal note indicates an estimated general fund expenditure increase, and the law affects Medicaid providers, freestanding inpatient psychiatric hospitals, and the state agency administering Medicaid, while remaining contingent on federal CMS approval and available funding.
Sentiment
The bill appears to have broad legislative support and little visible opposition. It passed the Senate unanimously, passed the House by a strong margin, and then concurred in the Senate without dissent, suggesting general agreement that the reimbursement change is appropriate for behavioral health access and provider payment.
Contention
The main points of potential contention are fiscal and administrative rather than policy direction. Because the bill requires reimbursement at 100% of Medicare rates and carries an estimated general fund cost, lawmakers may have been concerned about budget impact and whether funds were available. Another issue is federal approval, since implementation depends on CMS approval, which could affect timing or feasibility. No recorded committee debate is provided, and the votes suggest these concerns did not generate significant opposition.