Report to Congress: Response to 21st Century Cure Act MEPD Demonstration

The Centers for Medicare and Medicaid Services (CMS) Center for Medicare & Medicaid Innovation posted the final report to Congress providing the results of the Medicaid Emergency Psychiatric Demonstration (MEPD). The 21st Century Cures Act (P.L. 114-255), requires CMS to provide Congress with the results of the demonstration.

Section 2707 of the Patient Protection and Affordable Care Act established the MEPD. The goal of the demonstration was to test whether reimbursing psychiatric facilities at a Medicaid rate would lower overall costs. Currently, Medicaid diverts beneficiaries ages 21 to 64 to hospital emergency rooms and general hospital psychiatric units when they are experiencing an acute psychiatric episode instead of providing care in a psychiatric facility. The report found that the demonstration did not lower total or psychiatric costs and the rate of hospital emergency department visits remained constant.

More information about the completed demonstration can be found on the MEPD website.



For more information visit the McDermottPlus Payment Innovation Resource Center or contact Mara McDermott at 202-204-1462 or