New Medicaid Option Gives States More Flexibility In Funding CCBHC Services

The Centers for Medicare & Medicaid Services (CMS) issued guidance on October 6, 2026, establishing a new Medicaid state plan option that gives states more flexibility in funding Certified Community Behavioral Health Clinic (CCBHC) services. The option allows states to cover the full CCBHC service model without participating in the federal CCBHC Demonstration and to reimburse provider organizations through fee schedules, bundled payments, or other approved payment arrangements. Unlike the demonstration, which requires a prospective payment system (PPS), the new option does not require states to use a specific reimbursement methodology, but it also does not include the enhanced federal . . .