US SB1264

Establishes a Medicare demonstration program from October 1, 2025 through September 30, 2030 to test collaborative treatment models for patients with co-occurring mental and physical health conditions in vulnerable communities

Targets low-income Medicare beneficiaries, Medicaid enrollees, and uninsured individuals with serious mental illness combined with chronic conditions, high-risk pregnancy, disabilities, or history of high acute care utilization

Eligible participants include rural hospitals with at least 35% disproportionate patient share, large teaching hospitals with 200+ beds and specific case mix requirements, and small urban safety net hospitals

Requires participating hospitals to submit innovation plans addressing interdisciplinary care teams, mental health screening integration, electronic health record improvements, wrap-around social services, and community partnerships with nonprofits, health centers, and local government

Creates a learning collaborative for hospitals to share evidence-based practices and requires a congressional report evaluating program outcomes including care quality, health disparities, cost reductions, and recidivism rates