Managing Behavioral Health in Medicaid

Mental health and substance abuse services, commonly referred to as behavioral health services, have been more aggressively managed than most other medical and surgical services.1 Managed behavioral health organizations came to public programs from the private sector, where they substantially reduced the number of inpatient days for behavioral health problems, as well as the overall expenditures related to behavioral health. Many state Medicaid administrators, concerned about growing expenditures, have contracted with such organizations or capitated local providers, such as community mental health centers, to manage behavioral health benefits separately from other medical care.2 Such behavioral health “carve-out” programs come in . . .