Medicaid Rehabilitation Option

The Rehabilitative Services Option under Medicaid allows federal Medicaid reimbursement for “other diagnostic, screening, preventative, and rehabilitative services, including any medication or remedial services (provided in a facility, home, or other setting) recommended by a physician or other licensed practitioner of the healing arts within the scope of their practice under State law, for the maximum reduction of physical or mental disability and restoration of an individual to the best possible functional level.” Social Security Act, Sec. 1905(a)(13).

Many of the services covered under the Medicaid rehabilitative services option allow individuals with disabilities, particularly those with development disabilities and mental illness, to live independently at home and in the community.  Examples of services provided under the rehabilitative services option include employment-related rehabilitation services, adult day programs, independent living skills training, and medication management.  Coverage of these services has been approved by the federal agency that administers the Medicaid program (CMS) for several decades.

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