(1) As used in this section:
(a) "Integrated health care setting" means a health care or behavioral health care setting that provides integrated physical and behavioral health care services.
(b) "Local mental health authority" means a local mental health authority described in Section 17-77-301.
(2) The department shall develop a proposal to allow the state Medicaid program to reimburse a local mental health authority for covered physical health care services provided in an integrated health care setting to Medicaid eligible individuals.
(3) The department shall apply for a Medicaid waiver or a state plan amendment with CMS to implement the proposal described in Subsection (2).
(4) If the waiver or state plan amendment described in Subsection (3) is approved, the department shall:
(a) implement the proposal described in Subsection (2); and
(b) while the waiver or state plan amendment is in effect, submit a report to the Health and Human Services Interim Committee each year before November 30 detailing:
(i) the number of patients served under the waiver or state plan amendment;
(ii) the cost of the waiver or state plan amendment; and
(iii) any benefits of the waiver or state plan amendment.