Overview of medicaid and substance abuse treatment

Now in its fifth decade, Medicaid is a joint federal-state program with numerous variations and complications. This flexibility allows states to develop programs and funding streams that may be of particular benefit to Medicaid clients with substance abuse problems. This chapter reviews prominent features of Medicaid in the context of chemical dependency treatment program development and financing. The chapter summarizes options available to states within the Medicaid program that can be used to finance addiction treatment. Especially pertinent are the Rehabilitation and Clinic Options; the Early and Periodic Screening, Detection and Treatment program; and the several types of Medicaid waivers. Also relevant are provisions within the Temporary Assistance to Needy Families program. States are encouraged to explore these options with a view to provision of substance abuse treatment services for Medicaid clients.