Medicaid: A Vital Lifeline for Mental Health and Substance Use Disorder Care in Wisconsin

by William Parke Sutherland | May 16, 2025

Home 9 Federal Advocacy 9 Medicaid: A Vital Lifeline for Mental Health and Substance Use Disorder Care in Wisconsin

Medicaid in Wisconsin provides health care coverage for more than 1.2 million children and adults, including those with low incomes and many living in rural areas. Coverage includes support for mental health and substance use disorders (SUDs), providing access to treatments, community support, and targeted case management for individuals who might otherwise go without care due to high costs or private insurance declining to cover or offer specific services.

Medicaid is key to addressing mental health needs in Wisconsin.

More than one in three non-elderly adults enrolled in Medicaid are diagnosed with mental illness, including 10% with a serious mental illness. Medicaid’s mental health services are particularly important for:

New and expectant moms

In 2020, 38% of all pregnancy related deaths were due to mental health conditions. Medicaid provides timely mental and behavioral health services that support the whole family’s wellbeing.

Children

33% of Wisconsin children are covered by Medicaid. With coverage, children have access to preventive and mental health care that supports their healthy development, including services to screen, diagnose, and treat behavioral health conditions.

People with mental health conditions and substance use disorders

In 2023, more than 26% of Wisconsin adults reported symptoms of anxiety or depression. And nearly 20% of adults Wisconsinites dealt with a SUD in 2022 and 2023. Medicaid helps Wisconsinites get vital services— like counseling and medication—to stay healthy.

Local mental health providers

Community-based mental health providers are often the first place people go for support. Medicaid equips providers to deliver timely care. With funding from Medicaid, local providers have helped reduce hospitalizations, homelessness, and incarceration.

Medicaid supports Wisconsinites with substance use disorders (SUDs) by….

… covering treatments that prevent costly ER visits and hospital stays—saving families and taxpayers money.
… providing crucial treatments for opioid use disorders.
… improving prevention, diagnosis, and treatment of SUDs.
… addressing substance use early—before issues become more complex and costly.

In 2021, almost 88,000 Wisconsinites covered by Medicaid received treatment for an SUD.

Federal cuts to Medicaid would:

• Reduce access to timely care and treatment

• Limit treatment options and cause more preventable deaths

• Reverse progress on the opioid crisis and substance use prevention

• Raise health care costs for families and taxpayers Medicaid cuts would strip care from those who need it most and worsen Wisconsin’s mental health and SUD crisis.

Medicaid cuts would strip care from those who need it most and worsen Wisconsin’s mental health and SUD crisis.

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