Coverage for Substance Use Disorder
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This bulletin governs Medicaid coverage and medical-necessity determinations for treatment of drug and alcohol dependencies, including placement, continued stay, and transfer or discharge from treatment programs. Medicaid health plans must provide access comparable to private insurance and may not use prior authorization as a barrier to medically necessary covered services.
Medicaid health plans must use the full American Society of Addiction Medicine criteria to determine medical necessity for placement, continued stay, and transfer or discharge of patients with substance use disorder.
The policy provides coverage for five days of detoxification-center treatment and 30 days of intensive outpatient treatment when medically necessary, aligned with the residential treatment option.
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