A Look at 1115 Waiver Evaluations for Medicaid Payments to Institutions of Mental Disease (IMD) for Substance Use Disorder - Report - MDSpire

A Look at 1115 Waiver Evaluations for Medicaid Payments to Institutions of Mental Disease (IMD) for Substance Use Disorder

  • By

  • Heather Saunders

  • July 9, 2026

  • 0 min

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Clinical Report: Examining 1115 Waiver Assessments for Medicaid Funding to IMD

Background

Medicaid plays a crucial role in funding treatment for adults with substance use disorders (SUDs), covering a significant portion of this population. Historically, federal law has restricted Medicaid payments for inpatient care in IMDs, which has limited access to necessary services. The introduction of SUD IMD waivers aimed to address these barriers and enhance treatment access.

Data Highlights

No specific numerical data provided in the source material.

Key Findings

  • As of April 2026, 38 states and D.C. have adopted SUD IMD waivers for Medicaid funding.
  • Six states have completed summative evaluations.
  • Evaluation methods varied across states.
  • Challenges identified include workforce shortages and administrative barriers.
  • Most states reported decreases in SUD-related emergency department use.

Clinical Implications

Healthcare providers should be aware of the evolving landscape of Medicaid funding for SUD treatment, particularly regarding ongoing challenges such as workforce shortages and administrative barriers.

Conclusion

The evaluations of SUD IMD waivers indicate various challenges and outcomes, necessitating careful consideration of the systemic issues involved.

Related Resources & Content

  1. Kaiser Family Foundation (KFF), Source, Year -- Medicaid Mental Health and Substance Use: Expansion Trends and the Fiscal Pressure Ahead
  2. conexiant, Source, Year -- Low Follow-Up After Behavioral ED Care
  3. JAMA Network Open, Source, Year -- Coverage Limitations for Use of Urine Drug Testing in a State Medicaid Program
  4. Kaiser Family Foundation (KFF), Source, Year -- Tracking Implementation of the 2025 Reconciliation Law Medicaid Work Requirements: Related Resources
  5. Substance Use Disorder Section 1115 Demonstration Opportunity | Medicaid, Source, Year -- Substance Use Disorder Section 1115 Demonstration Opportunity
  6. Federal Guidelines for Opioid Treatment Programs, Source, Year -- Federal Guidelines for Opioid Treatment Programs
  7. Substance Use Disorder Section 1115 Demonstration Opportunity | Medicaid
  8. Federal Guidelines for Opioid Treatment Programs
  9. Emergency Department-Initiated Buprenorphine for Opioid Use Disorder: A Randomized Clinical Trial - PubMed

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