New York Congressman Introduces Bill To Allow Psychiatric Hospitals To Receive Medicaid Patients

Editor’s note: Rep. Goldman fights for his constituents by conducting legal, court-authorized oversight of the overcrowded, filthy conditions at 26 Federal Plaza in Manhattan, where immigrants who were going through the legal process to apply for citizenship and attended their annual hearing are the primary targets for arrest.  60% of those being detained there have NO criminal record whatsoever, so they are not the worst of the worst.  As the Congressman puts it in his press conference, ICE is going after the easy targets – asylum seekers, legal residents, and others attempting to navigate a complex system that offers very few real paths to actual citizenship.  Mostly, immigrants find it to be just a way to stay for a time but always be looking over your shoulder because you’re not really a permanent resident – even if you’ve been here, worked, contributed to your community, and paid taxes for twenty, thirty, or more years. This week we’ll be reviewing Brotherhood: A Cinematic Musical,  which offers a rare glimpse of the experience of such individuals – along with showing how ordinary citizens can help their neighbors – and why maybe they’ll want to.  As readers learned in our review of the documentary ‘Shuffle,” institutions tasked with helping those with substance use disorder oftentimes follow policies and procedures that are designed to keep patients on an endless merry-go-round of tests, treatment, steps, bonus payments, relapse, and repeat.  Very few people were actually helped by the system. It’s important to add safeguards that ensure that there are real incentives to help patients and not to just keep them coming back for more treatments.  NYC H+H recently instituted a new fellowship program for mental health professionals to improve patient care.  

Congressmen Goldman and Bentz Introduce the IMD CARE Act for Patients Suffering from Serious Mental Illnesses

WASHINGTON, D.C.— Today, Congressman Dan Goldman (D-NY) and Congressman Cliff Bentz (R-OR) introduced the IMD CARE Act, legislation which would expand Medicaid eligibility to include psychiatric care facility beds in excess of the current 16 bed limit for patients suffering from severe mental illness.

When the Social Security Act was enacted in 1965, it limited Medicaid funding to psychiatric facilities that had no more than 16 beds, resulting in a shortage of beds when the need for inpatient mental health care has grown.

The IMD CARE Act would amend the Social Security Act to establish a State Plan Amendment, allowing Institutions of Mental Diseases (IMDs) with more than 16 beds to receive Medicaid funding for all mental health patients.

Under current law, States that wish to receive federal Medicaid funding for IMDs with over 16 beds must submit a request for a waiver allowing them to receive Medicaid reimbursement for individuals needing psychiatric care.

These waivers are temporary, unstable, and require complex renewal negotiations.

The State Plan Amendment option included in the IMD CARE Act would provide predictable reimbursement structures, durable financing mechanisms, and greater continuity for patients and providers. States would be required to ensure a robust continuum of care including providing outpatient and community-based mental health care and wrap-around services. States would also be required to follow evidence-based clinical criteria for admitting and transitioning patients from institutional care.

The bill is endorsed by the National Association of State Mental Health Program Directors, National Association for Behavioral Health, Treatment Advocacy Center, National Shattering Silence Coalition, and Meadows Mental Health Policy Institute.

“Outdated Medicaid restrictions on long-term mental health care have left too many Americans in crisis without access to treatment,” Congressman Goldman said. “By allowing states more authority to expand their mental health services, we can reach more Americans who are stuck in a never-ending cycle of hospitals, jail, and the streets. This legislation is a critical step towards ensuring that everyone, regardless of income, can get the help they need with dignity.”

Said Congressman Bentz: “Studies show that a significant portion of the homeless and prison population suffer from severe mental illness. These people would benefit from the availability of proper treatment in our existing mental healthcare facilities. This bill would result in an increased number of beds and treatment available for mentally ill people. Without this improvement in how we deliver mental health services, those who need such treatment will continue to cost communities more in law enforcement and healthcare expenses. The circular progression of the mentally ill from the street to the hospital to the prison and back to the street must stop.”

“When someone on Medicaid is experiencing a mental health crisis, the program often won’t cover a psychiatric hospital bed. That’s because of a rule written in 1965,” said Scott Dziengelski, President and CEO of the National Association for Behavioral Healthcare. “A 60-year-old rule shouldn’t keep people from getting the care they need today. The IMD CARE Act takes an important step toward fixing that.”

Congressman Dan Goldman is committed to alleviating the mental health crisis in America. In 2025, he introduced the ‘Michelle Alyssa Go Act’ to increase the number of federal Medicaid-eligible in-patient psychiatric beds for individuals who are seeking treatment for both mental health and substance use disorders.

Full bill text here.

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Banner Image: Psychiatric care.  Image Credit – Vitaly Gariev