Press Releases

American Addiction Recovery Association Endorses Bipartisan Medicaid Bump Act

Calls on Congress to Fund Services for Americans Impacted by the Addiction Epidemic

Washington, D.C. — The American Addiction Recovery Association (AARA) announced its full support today for the bipartisan Medicaid Bump Act, a legislative proposal designed to significantly expand federal funding for behavioral and mental health services through Medicaid.

Currently, states receive federal reimbursement rates for Medicaid expenditures ranging between 50% and 75%. Under the proposed Medicaid Bump Act, this rate would increase to 90% for newly established mental and behavioral health services—providing a critical incentive for states to invest in addressing the ongoing addiction and mental health crisis.

The bill also includes important provisions to ensure transparency and accountability:

  • Directs the Secretary of Health and Human Services (HHS) to define eligible behavioral health services that qualify for the enhanced federal Medicaid assistance percentage (FMAP).

  • Requires HHS to publish annual reports detailing the impact of the increased Medicaid reimbursement on service utilization in each state.

“The Medicaid Bump Act is an important effort to deliver targeted federal support to expand state investment, raise provider reimbursement, and build capacity in local communities,” said Jeff Breedlove, CEO of the American Addiction Recovery Association. “It is essential that Congress remove structural barriers limiting access to care and provide the resources to compensate those providing care at an appropriate level so families can access the support they need in communities across America.”

The AARA urges lawmakers on both sides of the aisle to act swiftly to pass the Medicaid Bump Act and provide meaningful support for millions of Americans and families affected by the addiction epidemic.

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