Health care would change for over 300,000 foster children under new bill

A bipartisan bill would prevent certain residential treatment programs for foster children from being classified as Institutions for Mental Disease, preserving Medicaid coverage for more than 300,000 children; it now awaits a vote in the House Energy and Commerce Committee.

A bipartisan bill in Congress would change Medicaid rules for children in foster care who are placed in certain residential mental health programs. Advocates say a long-standing Medicaid exclusion can cut off coverage when facilities are classified as Institutions for Mental Disease because they serve more than 16 residents. The proposed Ensuring Medicaid Continuity for Children in Foster Care Act of 2026, introduced by Representatives Gus Bilirakis and Julia Brownley, would ensure Medicaid eligibility continues when children are placed in Qualified Residential Treatment Programs that meet federal child welfare standards. The bill is currently awaiting a vote in the House Committee on Energy and Commerce. Key facts: - There are about 300,000 children in the U.S. foster care system, and many depend on Medicaid for health and mental health services. - Some Qualified Residential Treatment Programs (QRTPs) have been classified by CMS as Institutions for Mental Disease (IMDs) when they serve more than 16 residents, which can block federal Medicaid payments. - The bill would prevent QRTPs that meet Family First and other federal standards from being treated as IMDs, aiming to keep Medicaid coverage uninterrupted for placed children. - The legislation was introduced by Bilirakis (R-FL) and Brownley (D-CA) and is awaiting a vote in the House Energy and Commerce Committee. Summary: If enacted, the bill would seek to maintain Medicaid coverage for foster children placed in qualified residential treatment settings and reduce interruptions in mental health care. The next procedural step is consideration and a vote in the House Energy and Commerce Committee.