Beginning in 2025, juveniles detained in youth facilities or adult (state and local) facilities will now be able to receive Medicaid coverage for eligible services while in a detention facility.

According to federal legislation passed in 2023, the Medicaid inmate exclusion policy will be partially waived for eligible youth awaiting trial in juvenile or adult correctional institutions starting in 2025. While youth are sporadically detained in local detention centers, the cost of care remains significant. Nearly two thirds of youth in correctional settings have a diagnosable mental health or substance use disorder, and many have significant unmet health needs.

Historically Medicaid coverage could not pay for any medical services administered inside a detention center. If an individual is transferred to a medical facility the coverage is extended, provided the individual is still enrolled. This policy shift will open up federal funding to pay for these services and supplement the healthcare costs to local and state detention centers. Local detention center leadership will be collaborating with state and federal officials ahead of the deadline to prepare for the shift in coverage and billing.