Reducing Substance Use Disorders

The need to improve how health care is delivered, measured, and experienced is strikingly evident in the substance use disorder delivery system. Nearly 12 percent of adults in Medicaid and 6 percent of adolescents have a Substance Use Disorder (SUD). This population is expected to grow as states continue to adopt Medicaid expansion.  Further, alcohol and substance use diagnoses are two of the top ten reasons for Medicaid hospital readmissions. Many states have found success in implementing policy, program and payment reforms that reduce health care costs and improve the health and health care for Medicaid beneficiaries with SUD.

CMS has been working with states to provide opportunities within Medicaid to enhance existing efforts or take up new efforts to design, deliver and pay for services that improve health outcomes. Over the past several years, CMS has issued a series of bulletins on service coverage, authority options and resources for states to identify and treat SUD under Medicaid:

  • In July 2014, CMS, in partnership with CDC, SAMHSA, and NIH released a joint Informational Bulletin to support work with states to offer a broad continuum of SUD services related to Medication Assisted Treatment (MAT).  
  • In January 2015, CMS and SAMHSA released a joint Informational Bulletin to address the needs of youth with SUD.
  • In July 2015, CMS released a State Medicaid Director Letter: New Service Delivery Opportunities for Individuals with a Substance Use Disorder describing a new opportunity for demonstrations projects approved under Section 1115 of the Social Security Act to develop a full continuum of care for individuals with SUD, including coverage for short-term residential services not otherwise covered by Medicaid.
  • In February 2016, CMS released an Informational Bulletin describing emerging best practices for preventing opioid-related harm, including several Medicaid pharmacy benefit management strategies for preventing harms associated with prescription opioid pain medications.

Program Support for State Medicaid Agencies

Through the IAP, states receive technical support designed to accelerate the development and testing of SUD policy, program and payment reforms, including support for MAT, data analytics and strategic planning support when applying for a section 1115 demonstration focused on SUD. Strategies include:

  • Payment and health care delivery models: Identify successful service delivery models, benefit strategies, and payment methodologies to promote improved care and better coordination between SUD and health care systems;
  • Data analytics: Support states in using data to better understand the needs of the Medicaid populations that have a SUD or that are at-risk of developing a SUD;
  • Quality measurement: Collect and test metrics that support states in more accurately measuring improvements in health outcomes for individuals with SUDs;
  • Performance Improvement: Assist states in understanding how to integrate elements of improvement as part of their SUD-related projects; and
  • State-to-state learning: Share lessons and interventions used by other states.

An overview of specific program support opportunities, including the specific topics of focus, can be found in the IAP SUD factsheet.  

Additional Information on IAP SUD Activities

In November 2014, we hosted a webinar for states and stakeholders to share our approach to working on SUD treatment and prevention.

States should submit additional questions via e-mail with the subject line "SUD" to the IAP mailbox: MedicaidIAP@cms.hhs.gov. Through the IAP, states can access targeted strategic planning support when applying for a Section 1115 demonstration focused on SUD. Contact Tyler Sadwith (Tyler.Sadwith@cms.hhs.gov) if your state is interested pursuing this opportunity.