House funding bill promotes OT mental health services
The House of Representatives’ FY2027 Labor, Health & Human Services, and Education (LHHS) funding bill includes language directing the Centers for Medicare & Medicaid Services to improve education and outreach to stakeholders about Medicare coverage of occupational therapy services furnished for the treatment of mental health and substance use disorder diagnoses.
This language is very similar to the bill text of the Occupational Therapy (OT) Mental Health Parity Act (H.R. 4037/S. 2847). Although Medicare already allows coverage of OT services for individuals with psychiatric conditions, many beneficiaries face unnecessary barriers to accessing care. Occupational therapy practitioners remain underutilized in the mental and behavioral health workforce, often due to limited awareness around their role in addressing these needs.
The goal of this legislation, and now the LHHS report language, is to help address this gap by directing the Secretary of Health and Human Services to conduct outreach and education to relevant stakeholders, ensuring better recognition of OT’s role in treating mental health and substance use disorders. By clarifying coverage and billing procedures, the language could eliminate persistent barriers and expand access to care.
The OT Mental Health Parity Act gained momentum late last year when the Mental Health Liaison Group endorsed the bill. Because the bill does not change existing law or add a new Medicare benefit, AOTA sought creative ways to achieve the bill's goals and worked with Congressional offices to include it in the LHHS funding bill.
While the House Appropriations Committee has passed the LHHS funding bill, there are still many steps to go. Congress would need to pass legislation to fund the federal government for 2027, and the legislation would need to do more than simply extend 2026 funding. Additionally, the language would need to survive negotiations with the Senate and be included in the final bill. Congressional support for the OT Mental Health Parity Act shows support for the current House LHHS language. You can write to your Members of Congress today and ask them to support the OT Mental Health Parity Act.