October 22, 2026
Mr. Kelly of Pennsylvania introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To amend title XVIII of the Social Security Act to ensure appropriate access to mental health care under the Medicare program.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
Section 1. Short title
This Act may be cited as the Behavioral Healthcare Deregulation Act
.
Sec. 2. Sense of Congress
It is the sense of Congress that—
(1)
the behavioral health crisis in America is driven by misguided deinstitutionalization, outdated Federal regulations, uneven enforcement of mental health parity laws, and excessive administrative requirements that divert resources away from patient care;
(2)
Federal policy too often restricts access, discourages investment, and imposes unique burdens on behavioral healthcare patients and providers;
(3)
according to the National Institute of Mental Health While mental disorders are common in the United States, their burden of illness is particularly concentrated among those who experience disability due to serious mental illness (SMI)
;
(4)
patients with serious mental illness are held for hours, sometimes days and even weeks in emergency departments because a psychiatric bed cannot be found;
(5)
one in every four homeless people in America have a serious mental illness;
(6)
every 11 minutes an American dies by suicide;
(7)
patients with behavioral health conditions account for 27 percent of the United States population but account for 56 percent of healthcare spending;
(8)
only 4.4 percent of spending on patients with behavioral health conditions is for treating a behavioral health condition;
(9)
elevated physical comorbidity and premature mortality in persons with schizophrenia result in a 15–20 year shorter life expectancy compared to the general population; and
(10)
this Act shall support individuals, their families and their caregivers in achieving access, care, and recovery for serious mental illness by removing Federal barriers.
Sec. 3. 190-day lifetime limit
(a) In general
Section 1812 of the Social Security Act (42 U.S.C. 1395d) is amended—
(1)
in subsection (b)—
(A)
in paragraph (1), by inserting or
at the end;
(B)
in paragraph (2), by striking ; or
at the end and inserting a period; and
(C)
by striking paragraph (3); and
(2)
in subsection (c), by striking (but shall not be included
and all that follows before the period at the end.
(b) Effective date
The amendments made by subsection (a) shall apply to items and services furnished on or after October 1, 2027.
Sec. 4. Financial protections for patients who are involuntarily committed
Section 1813(a)(1) of the Social Security Act (42 U.S.C. 1395e(a)(1)) is amended, in the matter at the end, by adding at the end the following new sentence: No reduction shall be made under the preceding sentence with respect to inpatient psychiatric hospital services furnished to an individual on or after October 1, 2027, if such individual was admitted to such hospital following an involuntary commitment order under applicable State law.
.
Sec. 5. Regulatory modernization and relief for behavioral health care providers
(a) In general
Section 1861(f) of the Social Security Act (42 U.S.C. 1395x(f)) is amended—
(1)
in paragraph (1), by adding and
at the end;
(2)
in paragraph (2), by striking the semicolon and inserting a period;
(3)
by striking paragraphs (3) and (4); and
(4)
by striking the matter at the end.
(b) Additional modifications
Section 1886(s)(4) of the Social Security Act (42 U.S.C. 1395ww(s)(4)) is amended—
(1)
in subparagraph (D), by striking clause (iv); and
(2)
by striking subparagraphs (E) and (F).
Sec. 6. Integrating mental healthcare with physical healthcare
(a) Incentives
(1) In general
Section 1848(b) of the Social Security Act (42 U.S.C. 1395w–4(b)) is amended by adding at the end the following new paragraph:
(13) Incentives for behavioral health integration
(A) In general
For services described in subparagraph (B) that are furnished during 2027, 2028, or 2029, instead of the payment amount that would otherwise be determined under this section for such year, the payment amount shall be equal to the applicable percent (as defined in subparagraph (C)) of such payment amount for such year.
(B) Services described
The services described in this subparagraph are services identified, as of January 1, 2024, by HCPCS codes 99484, 99492, 99493, 99494, G2214, and G0323 (and any successor or similar codes as determined appropriate by the Secretary).
(C) Applicable percent
In this paragraph, the term
applicable percentmeans, with respect to a service described in subparagraph (A), the following:(i)
For services furnished during 2027, 175 percent.
(ii)
For services furnished during 2028, 150 percent.
(iii)
For services furnished during 2029, 125 percent.
(2) Waiver of budget neutrality
Section 1848(c)(2)(B)(iv) of such Act (42 U.S.C. 1395w–4(c)(2)(B)(iv)) is amended—
(A)
in subclause (V), by striking and
at the end;
(B)
in subclause (VI), by striking the period at the end and inserting ; and
; and
(C)
by adding at the end the following new subclause:
(VII)
the increase in payment amounts as a result of the application of subsection (b)(13) shall not be taken into account in applying clause (ii)(II) for 2027, 2028, or 2029.
(b) Technical assistance for the adoption of behavioral health integration
(1) In general
Not later than January 1, 2027, the Secretary of Health and Human Services (in this subsection referred to as the Secretary
) shall enter into contracts or agreements with appropriate entities to offer technical assistance to primary care practices that are seeking to adopt behavioral health integration models in such practices.
(2) Behavioral health integration models
For purposes of paragraph (1), behavioral health integration models include the Collaborative Care Model (with services identified as of January 1, 2024, by HCPCS codes 99492, 99493, 99494, and G2214 (and any successor codes)), the Primary Care Behavioral Health model (with services identified as of January 1, 2024, by HCPCS codes 99484 and G0323 (and any successor code)), and other models identified by the Secretary.
(3) Implementation
Notwithstanding any other provision of law, the Secretary may implement the provisions of this subsection by program instruction or otherwise.
(4) Funding
In addition to amounts otherwise available, there is appropriated to the Secretary for each of fiscal years 2027 through 2031, out of any money in the Treasury not otherwise appropriated, such sums as are necessary, to remain available until expended, for purposes of carrying out this subsection.