Mental Health & Substance Abuse NAICS 621420, 623220

Jul 9, 2025 - One Big Beautiful Bill Includes Significant Medicaid Cuts

• President Trump has signed into law the $3.4 trillion One Big Beautiful Bill that is estimated by Healio to include $930 billion in Medicaid cuts over 10 years. Mental health and substance abuse centers rely primarily on insurance companies, managed care organizations, and government programs including Medicaid as their main sources of revenue. Nearly 12 million more people may be uninsured by 2034, with many losing coverage because of the Medicaid provisions in the bill, according to a US Congressional Budget Office analysis. For the first time in the Medicaid program’s nearly 60-year history, certain able-bodied adults aged 19 years to 64 years will be required to work, participate in job training, volunteer, or enroll in school at least 80 hours a month to maintain their Medicaid benefits. This will also be required for parents of children aged 14 years and older.
• All 50 states and the District of Columbia have seen fentanyl-related drug deaths decrease to levels not seen since 2020, according to an analysis of US overdose data conducted by researchers at the University of North Carolina at Chapel Hill. Demand for substance abuse treatment may decrease if the decrease in fentanyl-related drug deaths is due at least in part to a decrease in fentanyl use. "We are on track to return to levels of [fatal] overdose before fentanyl emerged," said Nabarun Dasgupta, lead researcher on the project which examined overdose records from the Centers for Disease Control and Prevention. Drug deaths in the US are down roughly a quarter, according to provisional Centers for Disease Control data. That includes fentanyl and other illicit drugs like cocaine and methamphetamine.

• The incidence of substance use disorders among seniors has climbed steeply, according to the Centers for Disease Control and Prevention (CDC). CDC data indicates that the rate of overdose deaths among seniors quadrupled from 2002 to 2021. Some older adults show long-term substance use, while others develop a harmful reliance later in life.
• Mental health and substance abuse industry employment increased slightly and wages for nonsupervisory employees decreased slightly during the first five months of 2025, according to the US Bureau of Labor Statistics (BLS). Mental health and substance abuse hospitals increased prices moderately during the first half of 2025, according to the BLS.