Program objective

Section 1003 Demonstration Project to Increase Substance Use Provider Capacity authorized a new demonstration to help states increase Medicaid substance use disorder provider capacity through education, training, and technical assistance. Through this demonstration, select states were awarded funding to develop and carry out approved activities that enable the state to assess its behavioral health treatment needs and increase the capacity and availability to provide substance use disorder treatment or recovery services for Medicaid beneficiaries. The demonstration includes planning grants and post-planning projects. Under section 1003(aa)(2)(A) (I-IV)), the HHS Secretary awarded planning grants totaling $48.4 million 15 states (based on geographic diversity, with a preference to states with a prevalence of opioid use disorders comparable to or higher than the national average). An additional $1.4 million in supplemental funding was subsequently awarded to the planning grantees. From among the planning grantees, 5 states were selected to receive enhanced federal reimbursement, during a 36-month period, for substance use disorder treatment or recovery services furnished by providers participating under the State plan (or a waiver of such plan).