The bill introduces new provisions under Vermont law to enhance the coverage of residential treatment for individuals with substance use disorders and co-occurring mental health conditions. Specifically, it establishes two new sections, 33 V.S.A. 1901n and 33 V.S.A. 1901o, which mandate the Agency of Human Services to provide coverage for medically necessary high-intensity and low-intensity residential treatment episodes for Medicaid beneficiaries. These treatments must be prescribed by qualified healthcare professionals within participating residential treatment programs, ensuring that the coverage extends for the entire length of stay as determined by the prescribing professional, in alignment with best practices in the substance use continuum of care.

Additionally, the bill includes provisions for a review of the Medicaid payment model for residential substance use disorder treatment services, with a report due by December 1, 2025, to recommend improvements that align payment with clinical needs and facilitate coordinated transitions between treatment providers. It also repeals certain previous amendments regarding the incarceration of incapacitated individuals and outlines requirements for reports on services for incapacitated persons and the Human Services Board's proceedings. The act is set to take effect on July 1, 2025.