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S 2241Health Insurance

Human Services - Medical Assistance

This bill mandates that Medicaid pay for mental health services provided by graduate student interns training for licensure.

Held for study
Population
Affected
15
Introduced Jan 23, 2026Committee Senate Finance

Plain-English Summary

This bill requires the Rhode Island Medicaid program to provide reimbursement for mental health services delivered by graduate student interns. To qualify, the intern must be in a mental health discipline and formally assigned by an accredited college or university to an agency for clinical training. The legislation allows these interns to be compensated from the reimbursed funds. Additionally, the organization supervising the intern is permitted to keep a portion of the reimbursement to cover the costs associated with supervision. The interns must be on a track toward professional licensure.

For younger readers

This law helps people get mental health support, like talking to a counselor. Sometimes, students who are still in college learning to be counselors need to practice helping people to finish their degrees. This is called an internship. Before this law, the state insurance called Medicaid might not pay for appointments with these students. Now, the law says Medicaid must pay for those visits. It also says the students can get paid for their work, and the offices teaching them can keep some money to pay for the teachers who supervise the students.

Who & Where It Applies

Impacted groups
Medicaid recipientsGraduate student internsMental health professionalsUniversities and collegesCommunity health centers
Impacted communities
All

Constitutional & Fiscal Check

None Likely

Estimated cost
Amount unknown
Estimated revenue
None

Bill Analysis

Both viewpoints
For Progressives
  • Significantly expands access to mental health care for low-income Medicaid recipients by utilizing a larger pool of qualified providers, potentially reducing wait times for therapy.
  • Promotes economic justice for students by allowing paid internships, making mental health professions more accessible to working-class students who cannot afford unpaid labor.
  • Strengthens the social safety net by creating a sustainable pipeline of mental health workers within community agencies that serve disadvantaged populations.
  • Could create a two-tiered healthcare system where low-income Medicaid patients are disproportionately treated by students while wealthier patients see fully licensed doctors.
  • Risks the exploitation of student labor if supervising organizations retain the majority of the reimbursement funds rather than passing a fair wage to the intern.
  • May discourage the state from investing in hiring full-time, experienced professionals for community health centers if cheaper student labor is readily available.
For Conservatives
  • Encourages private sector solutions and workforce development by utilizing university programs to address market shortages in mental health care.
  • Promotes individual responsibility and self-sufficiency by allowing students to earn income for their work rather than relying on loans or other assistance.
  • May reduce long-term social costs associated with untreated mental illness by increasing the availability of care through a more efficient staffing model.
  • Increases government spending by mandating taxpayer-funded Medicaid reimbursements for services provided by non-licensed trainees.
  • Creates potential liability and quality control issues by using public funds to pay for medical services rendered by students who have not yet achieved full licensure.
  • Expands the bureaucracy of the state Medicaid system by adding new layers of administration regarding who is eligible to bill the government.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 13 additions

SECTION 1. Chapter 40-8 of the General Laws entitled "Medical Assistance" is hereby amended by adding thereto the following section: 40-8-33. Graduate student services covered. Notwithstanding any general law, public law, special law, rule or regulation to the contrary, Medicaid reimbursement shall be provided under this chapter for services provided by a graduate student intern in one of the mental health professional disciplines who is formally assigned by an accredited college/university to an agency or facility for clinical training. The graduate student intern shall be allowed to receive compensation from these reimbursed hours and the supervising organization is allowed to retain a portion of the compensation to cover expenses related to supervisory work. A mental health practitioner working as a clinical trainee shall:

(1) Comply with requirements for licensure or board certification as a mental health professional including supervised practice in the delivery of mental health services for the treatment of mental illness; or

(2) Be a graduate student in a bona fide field placement or internship under a program leading to completion of the requirements for licensure as a mental health professional.

SECTION 2. This act shall take effect upon passage.