IMD Exclusion Explained – How Medicaid Limits Inpatient Mental Health Hospitals Over 16 Beds
Matthew Gray
December 12, 2025
IMD Exclusion functions as a structural barrier that limits Medicaid-funded inpatient psychiatric care for adults between the ages of 21 and 64. Created decades ago, the policy shapes the access to mental health treatment during a period marked by: Rising psychiatric needs Persistent inpatient bed shortages New efforts by states to strengthen behavioral health systems