The bill, enacted as Act No. 417, introduces a new section, R.S. 46:460.77.4, which mandates the Louisiana Department of Health to reimburse Medicaid providers for mental health partial hospitalization program services offered at licensed freestanding inpatient psychiatric hospitals. The reimbursement rate is set at one hundred percent of the Medicare rates, contingent upon approval from the Centers for Medicare and Medicaid Services.

Additionally, the implementation of this reimbursement policy is dependent on the appropriation of funds by the legislature or a notification from the secretary of the Louisiana Department of Health indicating that available funds have been identified within the existing budget. The act is scheduled to take effect on July 1, 2025, or the day following legislative approval if vetoed by the governor.