The bill S.36, introduced by Senators Lyons and Gulick, mandates that the Agency of Human Services provide Medicaid coverage for long-term residential treatment for beneficiaries suffering from substance use disorder and co-occurring mental health conditions. The new section 33 V.S.A. 1901m outlines that coverage will be available for medically necessary long-term residential treatment when prescribed by a licensed healthcare professional and when the treatment program is part of Vermont's Medicaid program. The bill specifies minimum coverage durations of 30 days if the substance use disorder can be treated with medication for opioid use disorder, and 60 days if it cannot.

Additionally, the bill redesignates the existing section 1901m to 1901n, which pertains to reimbursement for emergency medical services. The act is set to take effect on July 1, 2025.