The bill introduces new provisions under Vermont law to enhance coverage for residential treatment services 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 and will cover the entire length of stay as determined by the professional, ensuring adherence to best practices in the substance use treatment continuum.

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 regarding the incarceration of incapacitated individuals and outlines a series of reports to be provided by various departments by February 15, 2026, aimed at improving services for incapacitated persons and enhancing the transparency and efficiency of the Human Services Board's proceedings. The act is set to take effect on July 1, 2025.