Medicare Mental Health Modernization Act of 2005

The Medicare Mental Health Modernization Act of 2005 was a legislative proposal designed to expand and equalize mental health coverage for Medicare beneficiaries. The bill sought to eliminate the 190-day lifetime limit on psychiatric hospital stays and reduce the higher out-of-pocket costs for outpatient mental health visits, bringing them in line with the costs for physical health services.

If enacted, the bill would have increased access to care by allowing Medicare to cover services from licensed marriage and family therapists and mental health counselors. It also aimed to provide coverage for intensive residential and outpatient programs, while requiring a federal study to ensure that patients with Alzheimer’s disease or dementia are not unfairly denied therapy due to a lack of "clinical improvement." Although introduced in the Senate, this specific bill did not advance into law during the 109th Congress.