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Pennsylvania Approved for Additional Federal Funding for Substance Use Disorder Treatment Facilities Services

July 02, 2018

Pennsylvania has received approval to continue to receive federal funds to provide substance use disorder (SUD) treatments, according to an announcement today by the Wolf Administration.

The Pennsylvania Department of Human Services (DHS) obtained approval from the federal government for a waiver amendment, which will help the commonwealth to continue to receive federal Medicaid funding for the treatment of individuals in SUD residential treatment facilities for more than 15 days in a month. Federal funding for these services (estimated at more than $55 million per year) was adversely impacted by the changes in the federal Medicaid managed care rules announced during April 2016.

Since the rules’ implementation, DHS has continued to provide a full continuum of evidence-based SUD treatment services and bore the financial burden of that care with state dollars. Section 1115 Demonstration Waiver Amendment restores federal funding for more than 12,000 individuals receiving services in more than 150 facilities across the commonwealth. Pennsylvania is the 13th state to gain federal approval through this expedited waiver process established by the Center of Medicare & Medicaid Services last fall.

HAP applauds the commonwealth and federal government for its continued collaboration to ensure that Pennsylvanians have access to high-quality, medically necessary treatment for SUD across the commonwealth.

Pennsylvania’s hospital community remains committed to taking a leading role to address the opioid crisis, and is working with state and local government and organizations to limit opioid prescriptions, implement warm hand-off protocols, offer drug takeback opportunities, and develop educational programs to manage pain expectations and help support opioid alternatives.

For information about state and federal opioid response efforts, contact Jennifer Jordan, HAP’s vice president, regulatory advocacy, or Laura Stevens Kent, HAP’s vice president, federal advocacy.

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