The Fatal Overdose Reduction Act establishes a five-year Medicaid demonstration program to treat opioid and substance use disorders through Health Engagement Hubs. Up to 10 states can participate, receiving at least 90% federal matching for services including physical/behavioral health care, peer support, case management, and social services like employment counseling. Hubs must meet staffing requirements and have community advisory boards.
Latest Action
Read twice and referred to the Committee on Finance.
AI Summary
Plain-English explanation of this bill
The Fatal Overdose Reduction Act establishes a five-year Medicaid demonstration program to treat opioid and substance use disorders through Health Engagement Hubs. Up to 10 states can participate, receiving at least 90% federal matching for services including physical/behavioral health care, peer support, case management, and social services like employment counseling. Hubs must meet staffing requirements and have community advisory boards.
Last updated: 12/30/2025
Official Summary
Congressional Research Service summary
<p><strong>Fatal Overdose Reduction Act of 2025</strong></p><p>This bill establishes a five-year Medicaid demonstration program to support the provision of comprehensive and accessible services to treat opioid use and substance use disorders.</p><p>Specifically, the bill establishes a demonstration program through which states may receive a Federal Medical Assistance Percentage (i.e., federal matching rate) of at least 90% for services provided by organizations that serve as Health Engagement Hubs. States must certify that these organizations provide a certain level of services, including physical and behavioral health services that are easily and quickly accessible, peer support services, and targeted case management. Organizations must also meet specified minimum staffing requirements, have a community advisory board, and be equipped to provide certain social services (e.g., employment counseling).</p><p>The Centers for Medicare & Medicaid Services (CMS) may select up to 10 states to participate in the program. The bill provides funds for state planning grants and administration of the program.</p><p>The CMS must contract with an entity to evaluate the program, and the Government Accountability Office must report on this evaluation.</p>
Key Points
Main provisions of the bill
Creates 5-year Medicaid demonstration for substance use treatment
Establishes Health Engagement Hubs providing comprehensive services
90%+ federal matching rate for participating states
Includes physical health, behavioral health, and peer support
Requires case management and social services like job counseling
Up to 10 states can participate in the program
Hubs must have community advisory boards
How This Impacts Americans
Potential effects on citizens and communities
This bill could significantly expand access to substance use treatment during the ongoing overdose crisis. The 90%+ federal matching rate creates strong financial incentive for states to participate. Health Engagement Hubs comprehensive approach—combining medical treatment with peer support and social services—aligns with evidence-based practices for addiction recovery. The demonstration format allows evaluation before potential nationwide expansion, though limiting to 10 states restricts initial impact.
Policy Areas
Primary Policy Area
Health
Related Subjects
Congressional oversight
Drug trafficking and controlled substances
Drug, alcohol, tobacco use
Employee hiring
Government information and archives
Health care costs and insurance
Health care coverage and access
Health personnel
Health programs administration and funding
Health promotion and preventive care
+5 more
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
665, 119th Congress (2025). "Fatal Overdose Reduction Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-s-665