Colorado Medicaid Implements New Payment Model For Essential Mental Health Provider Organizations 

On July 1, 2025, Colorado updated payment requirements for behavioral health provider organizations licensed as essential safety net providers (ESNPs) for outpatient services. Previously, the state’s Regional Accountable Entities (RAEs) for the Colorado Medicaid Accountable Care Collaborative (ACC) Phase II paid the ESNPs according to a fee schedule, with payment guarantees for covered services. The payment change coincides with the go-live date for the new ACC Phase III RAE contracts. With these changes, the four RAE contractors can negotiate their own rates with ESNPs in the same way they negotiate rates with other provider organizations.

The RAEs manage . . .