CEO Update | 277
NABH Submits FY27 IPF PPS Payment Rate and PAI Comments to CMS
NABH this week submitted comprehensive comments and recommendations to the Centers for Medicare & Medicaid Services (CMS) about the agency’s Fiscal Year 2027 Inpatient Psychiatric Facility Prospective Payment Systems (IPF PPS) proposed rule, including the association’s serious concerns with the agency’s Patient Assessment Instrument (PAI) that takes effect next year.
“The proposed IPF-PAI is based on a post-acute model of care and is not appropriate for an acute inpatient psychiatric treatment setting,” NABH wrote in our letter. “While we support Congress’ intent to standardize assessment to enable comparison of quality and outcomes across IPFs, the IPF-PAI is not clinically meaningful, does not address psychiatric hospital quality, will not serve as a tool for treatment planning, and cannot measure mental health outcomes,” the letter continued. “If the Centers for Medicare & Medicaid Services (CMS) implements this tool as proposed, the IPFs will incur a huge burden without any clinical benefit to patients.”
NABH thanks its members, especially those who serve on the NABH Quality Committee, for sending comments that we included in the letter.
ICYMI: CMS Issues Interim Final Rule on Medicaid Community Engagement Requirements
CMS earlier this week issued the interim final rule (IFR) on the Medicaid program’s Community Engagement Requirement for Certain Individuals.
This IFR implements Sec. 71119 of H.R. 1 (also known as the One Big Beautiful Bill Act and the Working Families Tax Cut legislation), which conditioned Medicaid eligibility on completing 80 hours per month of community engagement activities (i.e., work, community service, or educational activities).
Statutory exceptions to community engagement requirements include people who are medically frail, which includes having a substance use disorder (SUD) or disabling mental disorder (DMD). The IFR does not define either SUD or DMD but rather indicates that states will need to adopt lists of qualifying conditions and implement a process for individuals to request an exemption due to a condition excluded from the list. Importantly, the IFR clarifies that people with SUDs would only qualify for the SUD exemption if they have been in recovery for fewer than five years, and active treatment participation is not needed to qualify.
States are required to prioritize assessing exception eligibility using their existing data. For individuals whom states cannot verify as medically frail using their existing data, practitioners can submit documentation to demonstrate eligibility. Otherwise, individuals can self-attest to medical frailty and enroll in Medicaid for six months before information is required to substantiate their attestation. If states grant the medically frail exception, they would need to reassess this exception at least annually.
Congress directed CMS in H.R. 1 to implement community engagement requirements via an IFR, a type of regulation that bypasses a public comment process on a draft version of a rule before it takes effect.
The NABH team will continue to review the IFR, which takes effect on July 31, 2026, the same day public comments are due. However, states do not need to implement the IFR’s provisions until Jan. 1, 2027.
NABH Weighs in on Managing the High Cost of Mental Healthcare in Kiplinger Article
The finance publication Kiplinger recently contacted NABH for a story about managing the costs of mental healthcare in the fourth of a five-part series that explores the connection between money and health.
The article explained that one of the biggest challenges for people with insurance coverage is finding mental health providers in their plan’s network. The story also acknowledged that evidence is “plentiful” that mental health treatment is still not on par with benefits for medical and surgical care.
“No question, there is a big gap,” says NABH Board Member Mark Covall, who served as the association’s interim president and CEO when Kiplinger reported the story.
SAMHSA Releases Case Study Guide on Postpartum OUD Care Transitions
The Substance Use and Mental Health Services Administration (SAMHSA) has releasedHealthy Starts: Postpartum OUD Care Transitions for Mother and Infant, a publication that summarizes information about the postpartum period and offers practical advice for care teams about comprehensive, collaborative, perinatal care.
According to SAMHSA, the postpartum period is a critical time for connecting mothers, parents, and caregivers with services and support to promote bonding, well-being, and healthy outcomes for families.
The agency also notes that the first postpartum year is an especially high-risk period for women with an opioid use disorder, and that evidence-based treatment options, such as medication for opioid use disorder, can help reduce these risks.
Reminder: Mark Your Calendars for These Upcoming Behavioral Healthcare Events
Please remember to save the date for the NABH 2027 Annual Meeting from March 1-3, 2027 at The Ritz-Carlton Washington, DC.
In the near term, here are some upcoming behavioral healthcare-related events:
- The American Mental Health Counselors Association annual event for professionals will be held June 23–26, 2026 in Portland, Ore.
- The Association of Clinicians for the Underserved annual conference will focus on expanding access to care from July 26-29, 2026 in Washington, D.C.
- The American Psychological Association will host its annual conference Aug. 6-8, 2026 in Washington, DC.
Fact of the Week
U.S. drug overdose deaths declined 13.9% in 2025 compared with the previous year, the CDCreports.
For questions or comments about this CEO Update, please contact NABH Operations Coordinator Shelby Liebler.



