June 13, 2025 – The Louisiana Legislature has approved House Bill 1 of the 2025 session which contains an appropriation of approximately $31 million in federal funding for the augmentation of the specialized behavioral health services reimbursement rates for the treatment of substance use disorders. Absent any gubernatorial action particular to this appropriation, it will be enacted into law. “On behalf of addiction treatment and recovery providers across Louisiana, I want to thank the legislature–in particular Chairmen McFarland and Womack–for supporting funding in this budget to ensure that addiction Medicaid rates don’t see a reduction,” said CLASPP President Mike Martyn. “Treatment not only saves lives but improves society by reducing burden on hospitals and the criminal justice system; importantly, treatment helps individuals reenter the workforce as well as their respective families and their communities. We appreciate the legislature’s continued focus on recovery from drug and alcohol addiction and applaud this renewed investment in services which support treatment and recovery.” CLASPP will seek published guidance from the Louisiana Department of Health regarding the impact of this additional funding to the temporary enhancement to Medicaid addiction treatment rates which are currently set to expire June 30.

May 15, 2025 – Today, the Louisiana House of Representatives passed House Bill 1 which included language appropriating $31 million in federal funding “for an increase in the reimbursement rates for specialized behavioral health services rates for substance abuse disorder treatment.” Prior to the 2024 legislative session, most Medicaid rates for substance use disorder (SUD) treatment had not been adjusted in a decade. However, funding appropriated in the 2024 session to support a Medicaid rate enhancement was only temporary and will expire at the end of this fiscal year (June 30, 2025) if not continued by the legislature. “We know that care is no less costly than it was a year ago, and asking treatment providers to go back to a lower Medicaid rate is untenable,” said CLASPP President Mike Martyn. “We are grateful to Chairman McFarland for acknowledging this and for his championing of additional funding in HB 1 to support addiction treatment services. We ask the Senate to confer in this appropriation so that addiction treatment may be more sustainably funded in Louisiana.” The Senate Finance Committee will receive public testimony on House Bill 1 on May 22. The Regular Legislative Session shall adjourn no later than 6:00pm on Thursday, June 12.

April 2025 – Eighty leading stakeholder groups from across the country, including the Coalition of Louisiana Addiction Service & Prevention Providers (CLASPP), have joined together to oppose recent funding and staffing cuts to the U.S. Department of Health and Human Services (HHS)’s Substance Abuse and Mental Health Services Administration (SAMHSA) and any HHS restructuring that weakens the community infrastructure of substance use and mental health services and supports.

March 28, 2025 – Following recent news that Louisiana and states across the U.S. have received termination of critical federal grant funding, CLASPP wrote to members of Louisiana’s congressional delegation to draw awareness to the immediate potential for catastrophic impact on addiction treatment services and providers across the country.

March 25, 2025 – Although the 2025 legislative session has not yet begun, the state Senate Finance and House Appropriations Committees are meeting over the next few weeks to hear from Louisiana Department of Health leaders around LDH’s budget request for the next fiscal year. The governor’s Executive Budget, released February 20, did not contain vital funding to prevent cuts to addiction treatment services. However, as the budgetary process proceeds in the regular session, CLASPP will be advocating that the legislature prioritize this critical funding recurringly.

February 19, 2025 – As Congress works to fund the government past the March 14 deadline, House Republicans have released a blueprint for identifying $800 billion in savings over ten years, singling out federal Medicaid spending. Proposals under consideration include implementing Medicaid block grants, instituting per capita caps, reducing the Federal Match Assistance Percentage (FMAP), and eliminating the FMAP expansion rate, each of which would have its own devastating effects on addiction treatment services and individuals served in Louisiana and across the country. CLASPP has written a letter to members of Louisiana’s congressional delegation to help increase awareness of the vital role Medicaid plays in ensuring coverage and care for vulnerable individuals and families, and to advocate against cuts to Medicaid which would have a devastating impact in Louisiana.

January 15, 2025 – Louisiana’s association of addiction treatment agencies has released recommendations for state policymakers’ consideration which would reduce addiction in Louisiana and improve access, quality, and outcomes in addiction treatment. “Despite a recent reduction in fatal overdoses nationwide, addiction and its related consequences remain at the forefront of American consciousness,” said CLASPP President Mike Martyn. “We must use every tool at our disposal here in Louisiana–create new tools if need be–to build the service infrastructure needed to sustainably reduce demand for drugs and alcohol. Families and communities are depending on it.” CLASPP’s policy recommendations to reduce addiction include: 1. Creating an online addiction treatment locator with emphasis on bed availability, which would increase access to services, care coordination, and outcomes, and reduce burden on emergency services and the criminal justice system as well as associated costs. 2. Enhancing the addiction treatment workforce by expanding Medicaid reimbursement for peer support and creating more opportunities to involve persons with lived experience. 3. Strengthening Louisiana’s addiction treatment systems and infrastructure by robustly and recurringly funding Medicaid rates for SUD treatment services.

December 3, 2024 – In anticipation of a state budget shortfall next year and concern that reductions could fall heavily on behavioral health, CLASPP has written the Louisiana Department of Health (LDH) requesting that it protect substance use disorder (SUD) treatment in its FY 25/26 budget and not recommend action which could damage or disrupt Louisiana’s addiction treatment service infrastructure. CLASPP has also requested that LDH prioritize inclusion of sufficient funding in its FY 25/26 budget request to support extending the current Medicaid SUD rate enhancement, and that this funding be made recurring. Adopting a sustainable funding model for SUD treatment services will enable providers to develop a more reliable workforce, offer quality care, and ultimately save more lives. CLASPP is urging LDH to protect addiction treatment services from reductions in FY 25/26 and implement stable, recurring funding which supports improved outcomes and access to the full spectrum of SUD treatment services.

November 17, 2024 – CLASPP is urging the Louisiana Legislature to be mindful of the behavioral health service community and individuals served as it considers tax reform measures and their potential impacts on the state general fund (SGF). Behavioral health services—including mental health and substance use disorder treatment—are primarily funded through SGF dollars by way of the state Medicaid program. Due to their unprotected status in the state budget, behavioral health services are always susceptible to being cut. Any reduction in SGF funding increases the likelihood that behavioral health services will be negatively impacted, regardless of whether the legislature intends it. SUD treatment agencies across Louisiana ask that the Legislature work to ensure that the state general fund does not take a significant hit that could expose behavioral health services to reductions and/or elimination.

October 1, 2024 – Effective today, Medicaid rates in Louisiana for substance use disorder (SUD) treatment services have been increased for the first time in a decade. Act 4 of the 2024 Regular Session included an additional $10 million in state funding to enhance Medicaid rates for SUD treatment services, which in total amounted to $31.2 million when including federal match dollars. This long-awaited Medicaid rate enhancement—announced by the Louisiana Department of Health (LDH) after conducting numerous rate sufficiency review reports—includes an across-the-board 25% increase for residential and outpatient SUD treatment services. However, at this moment the enhanced rates are only temporary and funded for nine months until the end of June 2025. “Providers have desperately needed more support and we are grateful to finally get it. But the fact that there is an expiration date on this funding means we have got to continue the fight to keep it,” said CLASPP President Mike Martyn. “We have to advocate aggressively to show how important it is that providers are supported and addiction treatment is adequately funded as both a criminal justice and public health priority.” CLASPP has requested that LDH include sufficient state general funding in its FY 25/26 budget to sustain enhanced SUD Medicaid rates, and that this funding be made recurring.

June 3, 2024 – Yesterday, the Louisiana Legislature approved a Fiscal Year 25 state budget (House Bill 1) which includes an additional $10 million in state funding to enhance substance use disorder (SUD) Medicaid rates. Medicaid rates for SUD treatment have not been adjusted since 2012. Should this priority remain in the budget that is signed by Governor Landry—coupled with matching federal funds—the budget would provide for over $31 million to increase SUD treatment rates in Louisiana. “We value the Legislature’s support and awareness of the challenges we face in providing addiction care, and that adequate funding for these services is an issue legislators from all sides could come together behind. Every addiction provider in our state is breathing a little easier now,” said CLASPP President Mike Martyn. “We urge Governor Landry to preserve this appropriation in House Bill 1 as signed and enacted.”

April 25, 2024 — Today, the Louisiana House of Representatives passed House Bill 1 with language included designating $10 million to enhance Medicaid rates for specialized behavioral health services. “Operating a treatment program at current funding levels is simply unsustainable”, said CLASPP President Mike Martyn. “The time is now for Medicaid behavioral health rates to be addressed. We are grateful to the House for providing additional funding for services and for prioritizing wellbeing and recovery, and we call on the Senate to act in kind.” Most Medicaid rates for Specialized Behavioral Health Services (SBHS)—including Licensed Mental Health Professionals and Substance Use Disorder treatment—have not been adjusted since 2012. The Louisiana Department of Health (LDH) has produced numerous rate review reports indicating Louisiana’s SBHS Medicaid rates are dramatically low compared to other states, and that additional State General Fund (SGF) dollars are needed to restore SBHS Medicaid rates to benchmark levels. House Bill 1 will be debated by the Senate, and amendments attached in the Senate shall be conferred in by the House. The Regular Legislative Session shall adjourn no later than 6:00pm on Monday, June 3, 2024.