Representatives Introduced the IMD CARE Act
The legislation seeks to increase Medicaid coverage for larger psychiatric treatment facilities nationwide.
Updated on Oct. 10, 2026 in Mental Health
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U.S. Representatives Cliff Bentz and Dan Goldman have introduced the IMD CARE Act to address critical shortages in inpatient mental health care. The bill would amend the Social Security Act to allow institutions with more than 16 beds to qualify for federal Medicaid funding.
Why it matters
Current federal law restricts Medicaid reimbursement to psychiatric facilities with 16 or fewer beds, which critics argue limits patient access to care. By removing this requirement, the proposal aims to expand the availability of inpatient psychiatric treatment nationwide.
The Social Security Act of 1965 established a limit of 16 beds for psychiatric facilities seeking Medicaid reimbursement. This 60-year-old policy currently requires states to secure federal waivers to receive funding for larger institutions.
The players
Cliff Bentz
He is a U.S. Representative who serves on the House Committee on Natural Resources and represents Oregon's 2nd congressional district.
Dan Goldman
He is a U.S. Representative serving New York's 10th congressional district and is a former federal prosecutor.
The details
The IMD CARE Act replaces existing temporary waiver requirements with a standardized reimbursement structure through a state plan amendment. This change is intended to increase the total number of beds available for psychiatric treatment across the country.
Timeline
The Social Security Act established the 16-bed psychiatric facility limit in 1965.
Representatives Cliff Bentz and Dan Goldman introduced the IMD CARE Act on October 1, 2026.
Health Landscape
The IMD CARE Act marks a significant legislative challenge to a long-standing provision within the Social Security Act of 1965. This development signals a major shift in how the federal government approaches institutional mental health funding after decades of restrictive policy.
If passed, this legislation could significantly increase the number of available inpatient beds for patients struggling with severe mental health conditions. By streamlining funding, it may reduce the need for families to seek out-of-state care or face long wait times for facility admission.
The takeaway
The proposed legislation targets a decades-old policy barrier that has historically constrained the capacity of psychiatric hospitals. It represents a shift toward more flexible federal funding structures intended to meet rising demand for inpatient mental health services.
Further reading
Learn more about federal policies in the Mental Health section.
Source note: This article includes information reported by East Oregonian.
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Should federal Medicaid policy be expanded to fund larger psychiatric care facilities?
