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Subcommittee advances bill to make recovery residences reimbursable under Medicaid

January 16, 2025 | 2025 Legislature VA, Virginia


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Subcommittee advances bill to make recovery residences reimbursable under Medicaid
The House Health, Welfare and Institutions Subcommittee on Friday voted 8-0 to report HB 1893, a bill from Delegate Seabolt that would make recovery residences reimbursable under Virginia’s Medicaid program and convene a work group to study effectiveness and economic impact.

Delegate Seabolt told the committee HB 1893 would expand access to care for people with substance use disorder by aligning state practice with the American Society of Addiction Medicine’s standards. “This legislation saves lives and I hope that you support it,” she said.

The bill responds to changes in national guidance and to federal activity at the Centers for Medicare & Medicaid Services. A witness who operates recovery residences told the committee that, under non‑Medicaid commercial insurance plans, recovery residences are currently not covered and that Medicaid coverage has in practice relied on 1115 waiver arrangements. Committee members asked whether the state employee health plan covers recovery housing; a witness replied, “No.”

Supporters told the committee the change could reduce downstream criminal justice and health system costs. Michael Sizemore of the Substance Abuse and Addiction Recovery Alliance said the group “fully support[s] this bill” as a step to help people in recovery. Sarah Scarborough, who said she runs Real Life and chairs the Virginia Association of Recovery Residences, described operating 11 houses with 121 beds and said Real Life subsidized residents after costs rose “by 110%” over the last year.

HB 1893 would also create a work group to assess effectiveness and economic impact and would require a report to the General Assembly by November 1, 2025. The subcommittee voted to report and refer the bill to the Appropriations Committee by a vote of 8 to nothing.

The bill next goes to the Appropriations Committee; the required work group report is due to the General Assembly on November 1, 2025.

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Scribe from Workplace AI
Scribe from Workplace AI