Section 2707

SEC. 2707. MEDICAID EMERGENCY PSYCHIATRIC DEMONSTRATION PROJECT.

[a] Authority To Conduct Demonstration Project- The Secretary of Health and Human Services [in this section referred to as the 'Secretary'] shall establish a demonstration project under which an eligible State [as described in subsection [c]] shall provide payment under the State Medicaid plan under title XIX of the Social Security Act to an institution for mental diseases that is not publicly owned or operated and that is subject to the requirements of section 1867 of the Social Security Act [42 U.S.C. 1395dd] for the provision of medical assistance available under such plan to individuals who--

[1] have attained age 21, but have not attained age 65;

[2] are eligible for medical assistance under such plan; and

[3] require such medical assistance to stabilize an emergency medical condition.

[b] Stabilization Review- A State shall specify in its application described in subsection [c][1] establish a mechanism for how it will ensure that institutions participating in the demonstration will determine whether or not such individuals have been stabilized [as defined in subsection [h][5]]. This mechanism shall commence before the third day of the inpatient stay. States participating in the demonstration project may manage the provision of services for the stabilization of medical emergency conditions through utilization review, authorization, or management practices, or the application of medical necessity and appropriateness criteria applicable to behavioral health.

[c] Eligible State Defined-

[1] IN GENERAL- An eligible State is a State that has made an application and has been selected pursuant to paragraphs [2] and [3].

[2] APPLICATION- A State seeking to participate in the demonstration project under this section shall submit to the Secretary, at such time and in such format as the Secretary requires, an application that includes such information, provisions, and assurances, as the Secretary may require.

[3] SELECTION- A State shall be determined eligible for the demonstration by the Secretary on a competitive basis among States with applications meeting the requirements of paragraph [1]. In selecting State applications for the demonstration project, the Secretary shall seek to achieve an appropriate national balance in the geographic distribution of such projects.

[d] Length of Demonstration Project- The demonstration project established under this section shall be conducted for a period of 3 consecutive years.

[e] Limitations on Federal Funding-

[1] APPROPRIATION-

[A] IN GENERAL- Out of any funds in the Treasury not otherwise appropriated, there is appropriated to carry out this section, $75,000,000 for fiscal year 2011.

[B] BUDGET AUTHORITY- Subparagraph [A] constitutes budget authority in advance of appropriations Act and represents the obligation of the Federal Government to provide for the payment of the amounts appropriated under that subparagraph.

[2] 5-year AVAILABILITY- Funds appropriated under paragraph [1] shall remain available for obligation through December 31, 2015.

[3] LIMITATION ON PAYMENTS- In no case may--

[A] the aggregate amount of payments made by the Secretary to eligible States under this section exceed $75,000,000; or

[B] payments be provided by the Secretary under this section after December 31, 2015.

[4] FUNDS ALLOCATED TO STATES- Funds shall be allocated to eligible States on the basis of criteria, including a State's application and the availability of funds, as determined by the Secretary.

[5] PAYMENTS TO STATES- The Secretary shall pay to each eligible State, from its allocation under paragraph [4], an amount each quarter equal to the Federal medical assistance percentage of expenditures in the quarter for medical assistance described in subsection [a]. As a condition of receiving payment, a State shall collect and report information, as determined necessary by the Secretary, for the purposes of providing Federal oversight and conducting an evaluation under subsection [f][1].

[f] Evaluation and Report to Congress-

[1] EVALUATION- The Secretary shall conduct an evaluation of the demonstration project in order to determine the impact on the functioning of the health and mental health service system and on individuals enrolled in the Medicaid program and shall include the following:

[A] An assessment of access to inpatient mental health services under the Medicaid program; average lengths of inpatient stays; and emergency room visits.

[B] An assessment of discharge planning by participating hospitals.

[C] An assessment of the impact of the demonstration project on the costs of the full range of mental health services [including inpatient, emergency and ambulatory care].

[D] An analysis of the percentage of consumers with Medicaid coverage who are admitted to inpatient facilities as a result of the demonstration project as compared to those admitted to these same facilities through other means.

[E] A recommendation regarding whether the demonstration project should be continued after December 31, 2013, and expanded on a national basis.

[2] REPORT- Not later than December 31, 2013, the Secretary shall submit to Congress and make available to the public a report on the findings of the evaluation under paragraph [1].

[g] Waiver Authority-

[1] IN GENERAL- The Secretary shall waive the limitation of subdivision [B] following paragraph [28] of section 1905[a] of the Social Security Act [42 U.S.C. 1396d[a]] [relating to limitations on payments for care or services for individuals under 65 years of age who are patients in an institution for mental diseases] for purposes of carrying out the demonstration project under this section.

[2] LIMITED OTHER WAIVER AUTHORITY- The Secretary may waive other requirements of titles XI and XIX of the Social Security Act [including the requirements of sections 1902[a][1] [relating to statewideness] and 1902[1][10][B] [relating to comparability]] only to extent necessary to carry out the demonstration project under this section.

[h] Definitions- In this section:

[1] EMERGENCY MEDICAL CONDITION- The term 'emergency medical condition' means, with respect to an individual, an individual who expresses suicidal or homicidal thoughts or gestures, if determined dangerous to self or others.

[2] FEDERAL MEDICAL ASSISTANCE PERCENTAGE- The term 'Federal medical assistance percentage' has the meaning given that term with respect to a State under section 1905[b] of the Social Security Act [42 U.S.C. 1396d[b]].

[3] INSTITUTION FOR MENTAL DISEASES- The term 'institution for mental diseases' has the meaning given to that term in section 1905[i] of the Social Security Act [42 U.S.C. 1396d[i]].

[4] MEDICAL ASSISTANCE- The term 'medical assistance' has the meaning given that term in section 1905[a] of the Social Security Act [42 U.S.C. 1396d[a]].

[5] STABILIZED- The term 'stabilized' means, with respect to an individual, that the emergency medical condition no longer exists with respect to the individual and the individual is no longer dangerous to self or others.

[6] STATE- The term 'State' has the meaning given that term for purposes of title XIX of the Social Security Act [42 U.S.C. 1396 et seq.].