Managed Behavioral Health Care Associated With Lower Medicaid Costs, But Enrollees Had Higher Costs Than Fee-for-Service Care

OPEN MINDS, The Behavioral Health & Social Service Industry Analyst Industry News Compared with a fee-for-service program, managed behavioral health care was associated with a tendency toward reduced overall costs to Medicaid; however, private expenditures by family and friends on behalf of managed care plan members were higher than in fee-for-service programs. Managed behavioral health care was not associated with a reduction in overall social costs related to mental illness, such as lower rates of involvement in the criminal justice system or lost productivity. Cost redistribution due to risk-based financing strategies may result in unintended . . .