The House Appropriations Committee of the Louisiana Legislature convened on June 8, 2025, to discuss key amendments and fiscal implications related to Medicaid reimbursement rates for mental health services. The meeting focused primarily on the proposed legislation concerning the reimbursement of partial hospitalization programs (PHP) and intensive outpatient services (IOP).

The discussion began with clarification on the reimbursement rate, which was set at 100% of Medicare rates for Medicaid providers. This adjustment was made following amendments during the Senate Committee on Finance, where the initial proposal was modified to align with the preferences of the Office of Behavioral Health. The committee members expressed concerns regarding the fiscal note, which indicated a significant increase in Medicaid expenditures, estimated at approximately $13.3 million for the upcoming fiscal year.

Representatives highlighted the potential long-term cost savings associated with the proposed changes. It was noted that treating patients in outpatient settings could reduce the need for more expensive inpatient care, as emergency department visits are among the highest costs in healthcare. The committee acknowledged that other states have successfully implemented similar reimbursement structures, leading to cost savings in their Medicaid programs.

As the meeting progressed, amendments were proposed to remove IOP services from the current bill to streamline the fiscal note and make it more manageable. The committee discussed the implications of this amendment, emphasizing the importance of maintaining PHP services while postponing the inclusion of IOP services until the program's effectiveness could be evaluated.

The committee ultimately agreed to proceed with the amendments, aiming to refine the fiscal note and ensure that the proposed legislation could be effectively implemented without overwhelming financial implications. The meeting concluded with a commitment to revisit the IOP services in the future, contingent upon the success of the PHP reimbursement model.

Overall, the discussions underscored the committee's focus on balancing the need for mental health services with fiscal responsibility, setting the stage for future evaluations of the program's impact on both patient care and state expenditures.