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 healthcare provider, in alignment with best practices in the substance use continuum of care.

Additionally, the bill includes a requirement for the Agency of Human Services to review the Medicaid payment model for residential treatment services, focusing on the actual costs associated with treatment and the needs of individuals. The findings and recommendations from this review are to be submitted to relevant legislative committees by December 1, 2025. The bill also repeals certain provisions from previous legislation that restricted the incarceration of incapacitated individuals and outlines a plan for expanding services for these individuals, particularly in Chittenden County. The act is set to take effect on July 1, 2025.