The bill was introduced by Senators John Kennedy of Louisiana, a Republican, and Martin Heinrich of New Mexico, a Democrat. If approved, it would amend parts of the Social Security Act related to behavioral health services covered by Medicare.
The legislation comes as lawmakers focus on access to mental health care among older Americans, including challenges linked to depression, anxiety and limited availability of providers. Supporters of the bill argue that current administrative steps can delay treatment for some patients.
Bill Would Change Medicare Rules for Psychological Services
The Increasing Mental Health Options Act would allow clinical psychologists to provide Medicare-covered services in treatment settings without first obtaining physician approval, when authorized under state law. Current Medicare rules require that approval in some settings, which supporters say can slow the start of care.
According to the bill text, the changes would apply to services provided on or after January 1, 2028. The proposal would affect settings including skilled nursing facilities, partial hospitalization programs, home health services, inpatient psychiatric hospitals and comprehensive outpatient rehabilitation facilities.
The legislation would not change state licensing laws, expand psychologists’ scope of practice or alter the services covered by Medicare. It would also maintain existing requirements for psychologists to coordinate and consult with patients’ physicians when appropriate.
Arthur C. Evans Jr., Ph.D., CEO of the American Psychological Association, said according to a statement cited by Newsweek that many newly admitted nursing home residents experience depression or anxiety, while current Medicare rules can delay access to psychological care in some facilities.
The bill’s sponsors argue that removing the approval step would allow psychologists to begin treatment sooner for patients who already meet the requirements for receiving covered services.
Proposal Includes Incentives for Rural and Underserved Communities
The bill also addresses shortages of mental health professionals in certain areas by making clinical psychologists eligible for Medicare bonus payments when they provide services in designated health professional shortage areas.
According to the legislation, starting in 2028, eligible clinical psychologists would receive an additional payment equal to 10 percent of the Medicare payment amount for qualifying services provided in those shortage areas.
Senator Kennedy said in a statement that the measure would reduce administrative delays and help psychologists treat patients sooner, particularly in rural communities where mental health professionals are limited. Senator Heinrich said the proposal would help Medicare patients receive mental health care closer to their communities.
The lawmakers’ announcement stated that the bill is designed to improve access while keeping existing professional consultation standards in place. It was referred to the Senate Finance Committee after being introduced.
For Medicare beneficiaries, supporters of the legislation say the potential changes could mean fewer administrative steps before receiving psychological treatment and more availability of providers in communities facing shortages.
The bill remains in the early stages of the legislative process. It would need approval from both the Senate and the House of Representatives before reaching the president’s desk. According to Newsweek, supporters believe mental health care for older adults is an area where bipartisan agreement may help the proposal move forward.
