H.R. 8095 — Ensuring Medicaid Continuity for Children in Foster Care Act of 2026

This section exempts medical assistance for children in foster care under state responsibility who are placed in a qualified residential treatment program (QRTP)—as defined in section 472(k)(4) of the Social Security Act—from the Medicaid institutions for mental diseases (IMD) exclusion. (As background, the IMD exclusion generally prohibits federal Medicaid payments for services in IMDs—i.e., psychiatric hospitals or facilities with more than 16 beds primarily engaged in treating individuals with mental diseases—except for certain individuals and services; QRTPs are residential facilities for foster youth that provide treatment using evidence-based practices and are assessed for appropriateness every 30 days.) The exemption applies to services furnished in calendar quarters beginning on or after October 1, 2026, without regard to whether title IV-E foster care maintenance payments are made under section 472.