S 2256Medical Services

Human Services - Medical Assistance

This bill allows Licensed Independent Clinical Social Workers to bill Medicaid directly for services provided to adults.

Held for study

Population
Affected

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Introduced Jan 23, 2026Committee Senate Health & Human Services

Plain-English Summary

This legislation changes Rhode Island's Medicaid rules to allow Licensed Independent Clinical Social Workers (LICSWs) to bill the state directly for their services. Currently, there may be restrictions preventing these professionals from receiving direct payment from Medicaid. Under this bill, LICSWs will be able to enroll as providers and bill the Medicaid fee-for-service program for authorized mental health services provided to adults. The bill requires the state director to create a specific fee schedule and the necessary regulations to make this payment system operational.

For younger readers

This bill is about helping people get care for their mental health. There are special helpers called social workers who talk to people when they are feeling sad, worried, or having a hard time. Right now, the government health insurance plan called Medicaid might not pay these workers directly. This new rule says that Medicaid must pay these social workers for helping adults. This is good because it means the social workers can get paid for their job, and more people might be able to find someone to talk to when they need help.

Who & Where It Applies

Impacted groups

Licensed Independent Clinical Social Workers (LICSWs)Medicaid Recipients (Adults)State TaxpayersRI Department of Human ServicesMental Health Patients

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 services for low-income populations by increasing the number of available providers who can accept Medicaid.
Empowers social workers, who are often vital frontline workers in community health, by ensuring they can be reimbursed directly for their labor without needing to work under other entities.
Strengthens the social safety net by removing bureaucratic barriers that previously prevented qualified professionals from treating Medicaid beneficiaries.
The legislation specifically limits this direct billing to services provided to "adults," potentially failing to address the critical shortage of mental health services for children and adolescents on Medicaid.
Relies on a "fee-for-service" model, which some progressives argue incentivizes the quantity of visits over the quality of long-term care outcomes compared to value-based care models.
Does not mandate a minimum reimbursement rate, leaving the possibility that the appointed director could set fees too low to make it financially viable for social workers to participate.

For Conservatives

Encourages free-market principles by allowing independent professionals to operate as small business owners and bill directly for their services.
Reduces administrative redundancy by cutting out potential middlemen or supervising agencies, streamlining the transaction between the provider and the payer.
May help address mental health issues that contribute to homelessness and public disorder, potentially reducing the burden on law enforcement and emergency services.
Increases state government spending by expanding the scope of mandatory Medicaid reimbursements, which is ultimately funded by taxpayers.
Expands the administrative state by requiring the government to develop and promulgate new fee schedules, rules, and regulations.
Contributes to the growth of the welfare state by broadening the avenues through which government funds are distributed for healthcare services.

Votes

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Full Bill Text

Changes to existing Rhode Island law · 7 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. Licensed independent clinical social workers - 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 by licensed independent clinical social workers and those workers shall be entitled to enroll and bill Medicaid fee-for- service directly for authorized and/or covered services provided to adults with Medicaid fee-for- service coverage. The director is hereby directed to develop and promulgate a fee schedule and any necessary rules or regulations required to implement the provisions of this section.

SECTION 2. This act shall take effect upon passage.