Psychedelic-assisted therapy (PAT) is an emerging approach for treating behavioral health conditions, particularly for treatment-resistant depression and post-traumatic stress disorder. As clinical evidence grows and treatments move through FDA review, policymakers, payers, and health care providers are exploring how these therapies can be covered and delivered if treatments receive federal approval.
In 2025, the Psychedelic Mental Health Access Alliance (PMHA Alliance) partnered with CHCS to examine the opportunities and challenges associated with covering PAT through Medicaid. As the nation’s largest payer of behavioral health services, Medicaid will play a central role in determining access to PAT for people who may benefit from these treatments. Drawing on its expertise in Medicaid policy, behavioral health care, and delivery system transformation, CHCS helped the PMHA Alliance assess key policy and implementation considerations for Medicaid coverage of PAT.
CHCS conducted a landscape scan of evidence and policy developments, supplemented by interviews with state officials, providers, and other subject matter experts. The assessment explored:
- Key federal and state policy and regulatory developments related to PAT;
- Emerging evidence on psychedelic drugs and PAT for behavioral health conditions, including related to safety, outcomes, and Medicaid-relevant populations;
- State Medicaid processes for reviewing new treatments and establishing coverage, medical necessity, and utilization management;
- Considerations for integrating PAT into safety-net settings, including care models, provider roles and readiness, and administration requirements;
- Payment and reimbursement considerations raised by Medicaid stakeholders; and
- Opportunities for future investment to strengthen the evidence, care models, and stakeholder readiness needed to support Medicaid coverage of and access to PAT.
CHCS synthesized these findings into a report that provided the PMHA Alliance, researchers, policymakers, state Medicaid and behavioral health officials, funders, and other key stakeholders with insights on opportunities and implementation considerations for potential integration of PAT into Medicaid.
Partnering with CHCS
This Partner Snapshot highlights how CHCS helps organizations move policy and program priorities from planning to sustainable implementation through tailored, hands-on support. To learn more about CHCS Implementation & Advisory Services, visit www.chcs.org/services.
Interested in tailored support? Connect with CHCS to learn how our team can support your organization’s priorities. Contact us: www.chcs.org/partner.
