CMS approves amendment to better serve people with substance use disorders

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Waiver amendment allows Washington State to better serve people with opioid and other substance use disorders

The Washington State Health Care Authority (HCA) announced today final federal approval of an amendment to the state's Medicaid Transformation waiver, ensuring the state can continue treating substance use disorders in the most appropriate way.

The Centers for Medicare & Medicaid Services (CMS) approved HCA's request to receive federal Medicaid funding for services provided to Apple Health (Medicaid) clients to treat opioid addiction and other substance use disorders when those services are offered in facilities called institutions for mental disease (IMD).

Federal rules restrict the use of Medicaid funds for treatment in IMDs, defined as facilities larger than 16 beds and primarily engaging in the treatment of mental health or substance use disorders. Several inpatient and mental health and residential facilities in Washington State are considered IMDs, and approval of this amendment allows the state to maintain and expand access to inpatient and residential treatment.

The amendment applies to Washington State's existing Section 1115 waiver, known as Healthier Washington Medicaid Transformation. The five-year effort launched in January 2017 and provides up to $1.1 billion of incentives for rewarding high-quality care. It takes a patient-centered, holistic approach to care, creates partnerships among community organizations, and adds support systems for older adults, people with chronic homelessness and joblessness, and family caregivers.

"This amendment to Washington State's Medicaid Transformation effort will help save lives," said MaryAnne Lindeblad, HCA's Medicaid Director. "Improving the health of our populations through better substance use disorder treatment is fundamental to improving the social well-being of our citizens. This enables us to provide even more support to all areas of the state to improve care and ensure the right services reach all of our communities."

"I congratulate Governor Inslee and his team for crafting a comprehensive strategy that will improve health outcomes for Medicaid beneficiaries by increasing access to high quality care to combat substance use abuse," said CMS Administrator Seema Verma. "Washington is the 11th state in the last nine months to gain federal approval for this important tool in the fight against the opioid crisis."

Additionally, CMS approved the state's substance use disorder implementation plan protocol, which outlines Washington's path to provide care for Medicaid beneficiaries with opioid use disorder and other substance use disorders. The implementation plan describes the requirements and milestones that the state will follow in order to accomplish the goals of the amendment. Other technical corrections to existing special terms and conditions were also included in the approval.