Requires the state health care authority to: (1) Suspend, rather than terminate, medical assistance benefits by July 1, 2017, for persons who are incarcerated; and

(2) Collaborate with the department of social and health services, the Washington state association of counties, and accountable communities of health to improve population health and reduce avoidable use of intensive services and settings by requesting expenditure authority from the federal government to provide behavioral health services to persons who are incarcerated in local jails.

Requires the department of social and health services and the state health care authority to publish written guidance and provide trainings to behavioral health organizations, managed care organizations, and behavioral health providers related to how they can provide outreach, assistance, transition planning, and rehabilitation case management reimbursable under federal law to persons who are incarcerated, involuntarily hospitalized, or in the process of transitioning out of one of these services.