Rep. Ritchie Torres Reintroduces Bill to Repeal the IMD Exclusion and Expand Medicaid Coverage for Mental Health and Addiction Treatment

Congressman Ritchie Torres (NY-15) today re-introduced the Repealing the IMD Exclusion Act, legislation that would end a decades-old Medicaid restriction that limits federal coverage for inpatient mental health and substance use disorder treatment.

Under current federal law, Medicaid generally cannot provide federal matching funds for inpatient care delivered to adults ages 21 to 64 in Institutions for Mental Diseases (IMDs) with more than 16 beds, even when the care is medically necessary. This restriction has contributed to severe shortages of inpatient psychiatric beds, long wait times for treatment, and an overreliance on emergency rooms, jails, and shelters to respond to mental health and addiction crises.

The bill would repeal the IMD exclusion and allow Medicaid to cover inpatient mental health and substance use disorder treatment in qualified facilities that meet strong national standards for care, staffing, and clinical services.

“We are in the middle of a mental health and addiction emergency, but our laws are still stuck in the 1960s,” said Rep. Torres. “The IMD exclusion blocks Medicaid from paying for lifesaving inpatient treatment, even when doctors say it is necessary. In New York City, that means people in crisis cycle through emergency rooms, jails, and shelters instead of getting real care. Repealing the IMD exclusion would let us build a mental health system that intervenes earlier and saves lives before it is too late.”

The bill would also direct the U.S. Department of Health and Human Services to establish evidence-based standards for participating facilities, ensuring that expanded coverage goes hand in hand with high-quality treatment.

The full bill text is attached as a PDF here.