State Medicaid Behavioral Health Carve-Outs: The OPEN MINDS 2017 Annual Update

Carve-outs are Medicaid managed care financing models where some portion of Medicaid benefits—dental services, pharmacy services, behavioral health services, etc.—are separately managed and/or financed. In Medicaid behavioral health financing arrangements, there are five main models that states use to finance behavioral health benefits. Each of these models fall into the three categories: The traditional specialty carve-out, the carve-in (no carve-out), and the vertical consumer-specific carve-out.   Within these arrangements, there are five models that all state Medicaid programs utilize for financing behavioral health services; the primary carve-out to care management organization . . .