HELLO, WHAT ARE YOU LOOKING FOR
Medicaid is a state–federal partnership that provides health care to people of all ages—children, pregnant people, working-age adults, individuals with disabilities, and people over age 65. Occupational therapy practitioners work with people who rely on Medicaid for health care across multiple settings, including schools, community mental health centers, skilled nursing facilities, and clients' homes.
More than 75 million people rely on Medicaid for health care. Medicaid services can ensure that a child with a developmental delay is able to thrive and grow into a self-sufficient adult. Access to Medicaid services can help an adult with a disability live independently in the community, as well as support someone with mental illness to live a healthy life in recovery.
For children, OT services are mandatory under Medicaid's Early and Periodic Screening, Diagnostic and Treatment (EPSDT) benefit. For adults, OT is optional. Most states cover some OT in their standard benefit package and in home and community-based services (HCBS) waiver programs, but eligibility, scope of services, and payment policies vary widely from state to state. AOTA provides resources and support to state advocates working to secure sound coverage and payment policies.
On May 22, 2025, the House passed a wide-ranging budget reconciliation bill called the One Big Beautiful Bill Act. AOTA is closely tracking four provisions that could impact OT.
As an occupational therapy practitioner, staying informed about Medicaid activity in your state is essential to understanding how policy changes may affect your clients, your practice, and the broader health care landscape. Learn more about Medicaid, the mandatory and optional benefits, barriers to coverage of OT services, and how to advocate to Medicaid.
The Guide to Tracking State Medicaid Activity is a brief guide summarizing what Medicaid is and how you can stay up-to-date on Medicaid activity in your state.
Medicaid Essentials for Occupational Therapy: Coverage, Policy, and Practice —exclusive for AOTA members—is a deeper dive explaining what Medicaid covers and how Medicaid policy impacts OT practice.
See this AOTA Practice Essentials resource for basics of the Medicaid program's structure and payment policies.
This presentation can be used to help build your case for occupational therapy services in HCBS waiver programs.
This resource depicts an OTP working in a day habilitation program providing services to adults with intellectual and developmental disabilities.
One state-level push for Medicaid recognition of occupational therapy practitioners as Qualified Mental Health Providers (QMHPs) and/or Qualified Behavioral Health Providers (QBHPs).
Find information about the state agency that administers or supervises administration of your state's Medicaid program.
Has your state expanded Medicaid under the Affordable Care Act (ACA)? Explore state Medicaid expansion decisions with this interactive map.